Tax Escalation Pass-Through Calculator

Tax escalations above the base year pass through to tenants. This calculator sizes recovery by tenant share.

Current tax bill

Base year tax

Occupied SF

Total building SF

Tenant pass-through

$15,000

Total escalation

$50,000

Tenant share %

30.00%

How the math works

Pass-through = escalation above base × tenant share. Apply pro-rata unless lease specifies otherwise.

Track tax assessment hearings. Successful appeals cut expenses and pass-through. LL benefits most by appealing aggressively; tenants appreciate stable recoveries.

How to Use

Enter current tax bill.
Enter base year tax.
Enter occupied SF.
Enter total building SF.
Read escalation and tenant share.

Frequently Asked Questions

Base year stop?

Base year = year lease signed. Tenant pays tenant share of increase over base. Simple and transparent.

Expense stop?

Fixed dollar amount. Tenant pays everything over the stop regardless of base year. Can result in bigger shifts than base-year.

Reassessment impact?

Property sale or major improvement triggers reassessment. Tax can jump 30-50% in one year. Tenant sees the pass-through immediately — prepare them.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.