Tangible Personal Property Tax Calculator
Tangible personal property (TPP) tax is levied by local jurisdictions on business equipment, machinery, furniture, computers, and inventory. The tax is calculated by applying the local millage rate to the assessed value of these assets. Assessed value is typically original cost depreciated per the county's schedule, not market value. Enter the total assessed value of your business's personal property and the local tax rate (expressed per $100 of value) to estimate your annual TPP tax.
Tangible personal property tax formula
Annual TPP Tax = Assessed Value x (Rate / 100)
Monthly Accrual = Annual Tax / 12
The tax rate is typically expressed per $100 of assessed value (the same convention as real property tax in most jurisdictions). Divide the rate by 100 to get the decimal multiplier. For a rate of 2.00 per $100, the factor is 0.02 (2%).
How to find your assessed TPP value
Many states require businesses to file an annual personal property tax return (declaration or rendition) listing all assets. The assessor applies a depreciation schedule to determine assessed value. For example, computers might depreciate to 25% of cost after 3 years; machinery at 60% after 5 years. Retain original purchase records and depreciation schedules to verify the assessor's calculations.
Tangible personal property tax FAQ
What is tangible personal property tax?
Tangible personal property (TPP) tax is a property tax levied on movable business assets such as machinery, equipment, computers, furniture, fixtures, and inventory. It is separate from real property tax (which applies to land and buildings) and is imposed by most US states on businesses operating within their jurisdiction.
Which states have tangible personal property tax?
Most states impose TPP tax on businesses. However, several states have eliminated or significantly reduced it: Delaware, Hawaii, Illinois, Iowa, Minnesota, New Hampshire, New Jersey, New York, North Dakota, Ohio, Pennsylvania, South Dakota, and Wisconsin have no statewide business TPP tax as of 2024. Check your state's Department of Revenue for current status.
How is the assessed value of business equipment determined?
The assessed value of business personal property is typically based on the original cost depreciated over time using the assessor's depreciation schedule. Many states require businesses to file an annual property tax return (declaration of personal property) listing all owned assets.
How do I file a tangible personal property tax return?
Most jurisdictions require businesses to file an annual return (declaration or rendition) with the county assessor by a specified date, typically February 1 or April 15. The return lists all personal property owned by the business as of January 1. Late filing may result in penalties.
Can I appeal a tangible personal property tax assessment?
Yes. If you believe the assessed value is incorrect, you can appeal to the county assessor or local tax tribunal. Common grounds include errors in the depreciation schedule, assets that should be exempt, or assets that have been fully depreciated. Deadlines for appeals vary by jurisdiction.
Official sources
- Tax Foundation: Tangible Personal Property Taxes.
- Florida Department of Revenue: Tangible Personal Property.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.