HR Glossary
Supplemental tax rates

Supplemental tax rates

Updated on:
August 22, 2022


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What are supplemental tax rates?

Supplemental tax rates are additional taxes that are added to select tax rates. Supplemental tax rates are designed to raise additional revenue.

Supplemental taxes are additional taxes that are due when a property undergoes a change in ownership or new construction, the tax is owed because the County Assessor is required to immediately adjust the January 1 value to reflect the new value of the property.

Supplemental tax rates have the additional ability to be applied at the state as well as the federal level.

Supplemental tax rates may be added to the federal tax, state tax, or local tax, it may be imposed on income, property, sales, or unemployment.

Supplemental tax rates are commonly used when the tax rate on federal taxes, state taxes, and local taxes are already set.

Why are supplemental tax rates necessary?

Without these rates, many people would not be able to afford to live in certain areas. The cost of living is high in many parts of the country, and supplemental tax rates help to offset these costs.