How to Calculate How Much Taxes Per Sq. Foot

In some municipalities, business owners are required to pay square footage tax on the buildings or space within buildings they occupy. This is especially common in larger cities where real estate is at a premium. This tax is based on the square footage a business uses to conduct its business activities. The tax rate applied to the square footage may vary depending on the location of the building. For example, there may be a square footage tax applied to downtown businesses, but not other businesses in the city.

Step 1

Request your tax bill from the municipality in which your business resides. You may be able to access your bill online or you may pick it up at the taxing authority's headquarters. You also can request the taxing authority to mail or fax you a copy.

Step 2

Locate the "Square Footage Business Tax" line or other similarly worded line on the tax statement. The amount of square footage tax owed will be listed here. For this example, assume the total amount owed is $390.

Step 3

Divide the amount owed by the number of square feet your business encompasses. For this example, if your business were 10,000 square feet, you would divide $390 by 10,000. The answer is 0.039 or 3.9 cents per square foot.

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