Property Tax Calculator (2026)
Property tax is one of the few taxes almost every homeowner pays every single year, yet the math behind the bill - assessed value, assessment ratio, mill rates, exemptions - is rarely explained in plain language. Use this property tax calculator to estimate your annual and monthly bill from your home's value, your local tax rate, and any exemptions you qualify for, then see how your rate compares to the rest of the country.
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What a Property Tax Calculator Does
A property tax calculator estimates the annual and monthly tax bill a local government charges on a home, based on the property's assessed value and the tax rate set by the county, city, school district, and any special taxing districts that overlap the property. Unlike income tax, property tax is billed and collected locally, so no single national formula applies - every county effectively runs its own version of the same basic math.
- Property tax is billed annually (sometimes split into two installments) by your county or municipality
- It is based on assessed value, not the price you paid or your loan balance
- The national average effective rate is roughly 0.90% of home value per year
- Rates vary enormously by state and even by county within the same state
- Most mortgage lenders collect it monthly through an escrow account
- Exemptions such as homestead, senior, or veteran status can meaningfully lower the bill
How Property Tax Is Calculated
Every property tax bill in the United States follows the same underlying formula, even though the inputs differ by location:
- Step 1: Start with the property's market value - what it would likely sell for.
- Step 2: Apply the local assessment ratio to get the assessed value. Many states assess at 100% of market value, but some use a lower ratio (for example, 10% to 40%) as a matter of state law.
- Step 3: Subtract any exemptions you qualify for (homestead, senior, veteran, disability, agricultural, etc.) to get the taxable value.
- Step 4: Multiply the taxable value by the combined tax rate - often expressed as a percentage or as a "mill rate" - to get the annual tax owed.
Annual Property Tax = (Market Value × Assessment Ratio − Exemptions) × Tax Rate
The combined tax rate is usually not a single number set by one government - it's a sum of separate rates from the county, city or township, school district, and any special districts (fire, water, library, park) that cover the property, all added together into one effective rate on the tax bill.
Assessed Value vs. Market Value
Market value is what a willing buyer would likely pay for the home today - the figure you'd see in a real estate listing or appraisal. Assessed value is the figure your local tax assessor's office assigns for tax purposes, and it is what your bill is actually calculated on.
Assessed value often lags market value because reassessments don't happen every year in every jurisdiction - some counties reassess annually, others only every few years. Some states also apply an assessment ratio below 100%, and many cap how fast a property's taxable assessed value can rise each year even if market value jumps sharply, which is why two nearly identical neighboring homes can carry very different tax bills if one changed hands more recently than the other.
Understanding the Mill Rate
Many local governments express property tax rates in mills instead of percentages. One mill equals $1 of tax for every $1,000 of assessed value - in other words, 0.1%. A mill rate makes it easier for governments to combine many small taxing authorities into one number on your bill.
| Mill Rate | Equivalent Tax Rate | Tax on a $300,000 Assessed Value |
|---|---|---|
| 10 mills | 1.0% | $3,000 |
| 15 mills | 1.5% | $4,500 |
| 20 mills | 2.0% | $6,000 |
| 25 mills | 2.5% | $7,500 |
| 30 mills | 3.0% | $9,000 |
To convert a mill rate to a percentage for this calculator, divide the mill rate by 10 (25 mills ÷ 10 = 2.5% effective tax rate).
Worked Examples
A home is worth $350,000 in a county that assesses at 100% of market value, with a combined effective tax rate of 1.20% and no exemptions. Assessed value = $350,000. Taxable value = $350,000. Annual property tax = $350,000 × 1.20% = $4,200 per year, or about $350 per month if collected through escrow.
The same $350,000 home qualifies for a $50,000 homestead exemption. Taxable value = $350,000 − $50,000 = $300,000. At the same 1.20% rate, annual property tax = $300,000 × 1.20% = $3,600 per year - a savings of $600 compared to Example 1, purely from the exemption.
A home worth $250,000 sits in a state that assesses property at only 20% of market value, with a mill rate of 60 (equivalent to 6.0%) applied to that lower assessed value. Assessed value = $250,000 × 20% = $50,000. Annual property tax = $50,000 × 6.0% = $3,000 per year. This shows why comparing raw tax rates or raw assessment ratios across states in isolation is misleading - only the combination of the two determines the real bill.
Exemptions That Lower Your Property Tax Bill
- Homestead exemption. Reduces the taxable value of a primary residence; available in most states, though the amount and eligibility rules vary widely.
- Senior citizen exemption. Many counties offer additional reductions, rate freezes, or deferral programs for homeowners above a certain age, often combined with an income limit.
- Veteran and disabled veteran exemptions. Frequently offer larger reductions, and in some states a full exemption for veterans with a total disability rating.
- Disability exemptions. Available in many jurisdictions independent of veteran status, for homeowners with a qualifying disability.
- Agricultural or "current use" assessments. Farmland and certain open land can be assessed at its use value rather than its full market/development value, substantially lowering the bill.
- Assessment caps. Some states cap how much a property's taxable assessed value can increase in a single year, which acts like a rolling exemption during periods of rapid appreciation.
Exemptions are almost never applied automatically when you first qualify - most require filing an application with the county assessor, and deadlines can be strict. Homeowners who move, refinance, or turn a certain age should proactively check whether they now qualify for an exemption they aren't currently receiving.
Average Property Tax Rates by State
Effective property tax rate is the annual tax bill expressed as a percentage of a home's market value, which makes it possible to compare tax burden across states with very different assessment ratios and mill rate systems.
| State | Approx. Effective Rate | Relative Level |
|---|---|---|
| New Jersey | ~2.23% | Highest in the U.S. |
| Illinois | ~2.08% | Very high |
| Connecticut | ~1.79% | Very high |
| New Hampshire | ~1.61% | High (no state income tax) |
| Vermont | ~1.83% | Very high |
| Texas | ~1.68% | High (no state income tax) |
| Nebraska | ~1.61% | High |
| Wisconsin | ~1.61% | High |
| New York | ~1.72% | High |
| Ohio | ~1.30% | Above average |
| Pennsylvania | ~1.36% | Above average |
| Michigan | ~1.38% | Above average |
| National Average | ~0.90% | Baseline |
| Tennessee | ~0.56% | Below average |
| South Carolina | ~0.53% | Below average |
| Delaware | ~0.53% | Below average |
| Nevada | ~0.50% | Low |
| Colorado | ~0.49% | Low |
| Alabama | ~0.37% | Very low |
| Hawaii | ~0.27% | Lowest in the U.S. |
These are broad state-level averages aggregated from public county assessment data - actual rates vary significantly by county, city, and school district within every state. A low state average can still mask a high-tax county, and vice versa, so always check your specific county assessor's published rate for an exact figure.
Property Tax and Your Mortgage Escrow Account
If you have a mortgage, your lender likely collects an estimated one-twelfth of your annual property tax bill with every monthly payment and holds it in an escrow (or impound) account, then pays the county directly when the bill comes due. This is why a mortgage payment is usually quoted as "principal, interest, taxes, and insurance," commonly abbreviated PITI.
- Escrow amounts are re-estimated periodically (usually annually) based on the latest tax bill and insurance premium.
- If your home is reassessed at a higher value, your monthly mortgage payment can rise even if your interest rate never changes.
- An escrow shortage (when the account collected less than what was actually owed) is typically spread over the next 12 months of payments, or can be paid in a lump sum.
- Homeowners without a mortgage, or who negotiated to waive escrow, pay the county or municipal tax office directly, usually on a set annual or semi-annual due date.
Reassessment Cycles
Reassessment frequency is set by state or county law and varies widely: some jurisdictions reassess every property every year, others every two to five years, and a few only reassess when a property changes ownership or has significant improvements. Between full reassessments, most areas apply an annual inflation or "trending" adjustment based on broader market data rather than an individual appraisal.
A sharp rise in home prices in your area doesn't raise your tax bill immediately in most places - it shows up gradually as reassessments catch up, sometimes years later. This means a homeowner can see a large, seemingly sudden increase in their tax bill even though nothing about their own home changed, simply because the local assessor's office finally updated its records to reflect years of market appreciation.
How to Appeal Your Assessment
- Step 1: Review your assessment notice carefully and confirm the assessed value, property details (square footage, lot size, number of bedrooms/bathrooms), and any exemptions currently applied.
- Step 2: Gather evidence - recent comparable sales of similar homes nearby, an independent appraisal, or photos documenting condition issues (structural damage, outdated systems) that support a lower value.
- Step 3: File a formal appeal with your county assessor or local board of review before the stated deadline - these windows are often just 30 to 60 days after the notice is mailed and are strictly enforced.
- Step 4: Attend the hearing (in person, by phone, or in writing depending on the jurisdiction) and present your evidence clearly and factually.
- Step 5: If unsuccessful at the county level, most states offer a further appeal to a state tax tribunal or court, though this involves a higher burden of proof and often legal representation.
Appeals challenge the assessed value, not the tax rate itself - even a successful appeal won't lower the rate your local government charges, but it can meaningfully reduce the taxable base your bill is calculated on.
Is Property Tax Deductible? The SALT Cap
Property tax can be deducted on federal income taxes, but only if you itemize deductions instead of taking the standard deduction, and only up to the combined State and Local Tax (SALT) deduction cap, which lumps property tax together with state and local income or sales taxes into a single limited deduction. For many homeowners in higher-tax states, the SALT cap means only a portion of what they actually pay in property tax translates into a federal deduction.
Common Mistakes
- Using market value instead of assessed value. Tax is calculated on assessed value, which can be lower (or occasionally higher, if capped growth hasn't caught up) than current market value.
- Forgetting to apply for exemptions after a move or milestone birthday. Homestead and senior exemptions are rarely automatic - they require an application.
- Assuming the tax rate is a single flat number. Most bills combine county, municipal, school, and special district rates into one effective rate.
- Ignoring reassessment notices. Missing an appeal deadline locks in the new assessed value for the full cycle, even if it looks clearly too high.
- Confusing an escrow shortage with a rate increase. A rising monthly mortgage payment is often due to a higher tax bill or insurance premium, not a change in your loan's interest rate.
Glossary
- Market value
- The price a property would likely sell for on the open market today.
- Assessed value
- The value a local tax assessor assigns to a property for tax purposes, often a set percentage of market value.
- Assessment ratio
- The percentage of market value used to calculate assessed value, set by state or local law.
- Mill rate
- The tax rate expressed as dollars owed per $1,000 of assessed value; one mill equals 0.1%.
- Effective tax rate
- The annual property tax bill expressed as a percentage of the home's market value, useful for comparing tax burden across areas.
- Homestead exemption
- A reduction in taxable value granted to a homeowner's primary residence.
- Escrow (impound) account
- An account held by a mortgage lender that collects monthly deposits to pay property tax and insurance bills on the homeowner's behalf.
- Reassessment
- The periodic process by which a local government updates a property's assessed value.
Frequently Asked Questions
Q: How do I calculate property tax on my home?
A: Multiply your home's assessed value by your local tax rate. First, find the assessed value by multiplying market value by your area's assessment ratio (often 100%, but sometimes 10% to 90% depending on the state). Then subtract any exemptions, such as a homestead exemption, to get the taxable value. Finally, multiply the taxable value by your effective tax rate or mill rate to get your annual property tax bill.
Q: What is the difference between assessed value and market value?
A: Market value is what your home would likely sell for today. Assessed value is the figure your local tax assessor uses to calculate your bill, which is often a percentage of market value set by state law - sometimes 100%, sometimes far lower. Property tax is always calculated on assessed value, not market value directly.
Q: What is a mill rate and how does it relate to property tax?
A: A mill rate expresses the property tax rate as dollars owed per $1,000 of assessed value. One mill equals $1 of tax per $1,000 of assessed value, or 0.1%. A mill rate of 25 means $25 in tax for every $1,000 of assessed value, which is the same as an effective rate of 2.5%.
Q: What is a homestead exemption and how much does it save?
A: A homestead exemption reduces the taxable value of a primary residence before the tax rate is applied, lowering the bill. The exact dollar amount or percentage varies widely by state and county - some offer a flat dollar reduction, others a percentage of value, and some scale the benefit for seniors, veterans, or disabled homeowners.
Q: Are property taxes included in my mortgage payment?
A: For most homeowners with a mortgage, yes. Lenders typically collect one-twelfth of the estimated annual property tax with each monthly payment and hold it in an escrow account, then pay the tax bill directly to the local government when it's due. Homeowners without a mortgage, or those who opted out of escrow, pay the county or municipality directly, usually once or twice a year.
Q: Can I appeal my property tax assessment?
A: Yes, nearly every jurisdiction allows homeowners to formally appeal an assessed value they believe is too high, usually within a set window after the assessment notice is mailed. A successful appeal typically requires evidence such as comparable sales, an independent appraisal, or documentation of property condition issues that support a lower value.
Q: Is property tax deductible on federal income taxes?
A: Property tax is deductible if you itemize deductions, but it is combined with state and local income or sales taxes under the SALT (State and Local Tax) cap, which limits the total combined deduction. Homeowners who take the standard deduction cannot deduct property tax separately.
Q: Which states have the highest and lowest property taxes?
A: States like New Jersey, Illinois, Connecticut, and New Hampshire consistently have the highest effective property tax rates in the country, often above 1.6% of home value. States like Hawaii, Alabama, Colorado, and Louisiana have among the lowest effective rates, frequently under 0.55%, though low rates can be paired with higher home values.
This calculator provides estimates for informational and educational purposes only and does not constitute tax or financial advice. It applies a simplified formula (assessed value minus exemptions, times tax rate) and does not account for special assessment districts, phased-in reassessments, proration at sale, or jurisdiction-specific rules. For an exact figure, consult your county assessor's office or a licensed tax professional. Sources: aggregated public county and state assessor data, state department of revenue property tax guides, and standard assessment ratio / mill rate methodology used across U.S. taxing jurisdictions.