Property Tax Calculator
Estimate your annual and monthly property tax based on your home value and local tax rate.
Property tax varies enormously by location, from under 0.3% in Hawaii and Alabama to over 2% in New Jersey and Illinois. Knowing the actual dollar amount before buying, not just the rate, is essential for budget planning. A $400,000 home costs $1,200/year in property tax in one state and $9,600 in another.
Property taxes are typically escrowed, your lender collects 1/12 of the annual tax with each mortgage payment and pays it on your behalf. The monthly escrow amount adds significantly to your effective housing cost.
How property tax is calculated
Property tax = assessed value × tax rate. The assessed value is typically the market value multiplied by an assessment ratio. In most states, the assessment ratio is 100%, the assessed value equals market value. Some states use lower ratios (Massachusetts uses 100%, but many Southern states assess at 10–25% of market value). The taxable value deducts any applicable exemptions from the assessed value.
Mill rates vs percentage rates
Property tax rates are sometimes expressed as "mill rates", mills per dollar of assessed value. One mill equals $1 per $1,000 of assessed value, or 0.1%. A mill rate of 15 mills is 1.5%. If you see a mill rate on your tax assessment, divide by 10 to get the percentage rate to enter in this calculator.
Homestead exemptions
Most states offer homestead exemptions that reduce the taxable value of a primary residence. Common exemptions range from $5,000 to $50,000, Texas exempts $100,000. Exemptions are usually available only for owner-occupied primary residences, not rental properties or vacation homes. Apply for the exemption through your county assessor's office, it's not automatic in most jurisdictions.
Other exemptions
Many states offer additional property tax reductions for seniors (often with income limits), veterans and disabled veterans, people with disabilities, and agricultural land. These exemptions can be substantial, some senior exemptions eliminate property tax entirely for qualifying homeowners. Check with your local assessor's office for available programs.
Appealing your assessment
If you believe your assessed value is higher than your home's actual market value, you can appeal. Most counties have a formal appeal process with a deadline (typically 30–90 days after assessment notices are mailed). Appeals succeed when you can provide comparable sales data showing your home is worth less than the assessed value. Successful appeals can save hundreds to thousands annually and apply going forward.
Frequently asked questions
Are property taxes deductible?
Property taxes on your primary and secondary residences are deductible as itemized deductions, subject to the $10,000 SALT (state and local taxes) cap established by the 2017 Tax Cuts and Jobs Act. If your total state income taxes plus property taxes exceed $10,000, the excess is not deductible. For most taxpayers in low-tax states, the SALT cap doesn't bind, the full amount is deductible.
How often is my home reassessed?
Reassessment frequency varies by jurisdiction, annually, every 3 years, or on sale (California's Prop 13 limits annual increases to 2% until the property sells). In hot real estate markets, reassessment to current market value can significantly increase property taxes. Some states cap annual assessed value increases regardless of market gains.
What's the average property tax rate in the US?
The national average effective property tax rate is approximately 1.1% of market value. New Jersey (2.2%), Illinois (2.0%), and Connecticut (1.9%) have the highest rates. Hawaii (0.3%), Alabama (0.4%), and Colorado (0.5%) have among the lowest. Local rates within states also vary significantly, county and city rates layer on top of state rates.