Property Tax Calculator
Calculate your estimated property tax bill based on your home's assessed value and the local tax (mill) rate. Includes options for homestead exemptions and other deductions to get a more accurate estimate.
Property tax is a local tax levied by counties, municipalities, and school districts on the value of real estate you own. It is the single largest source of revenue for most local governments, funding schools, police, fire, roads, and public services. Unlike federal income tax, property tax rates and rules vary enormously — from under 0.3% of market value in Hawaii to over 2% in New Jersey and Illinois — and the mechanics differ from one jurisdiction to the next.
Most U.S. property tax bills are computed in two steps. First, the local assessor sets an assessed value — sometimes equal to market value, sometimes a fixed percentage of it (the "assessment ratio"). Second, the jurisdiction applies a mill rate — the tax rate per $1,000 of taxable value. A mill rate of 20 on a $300,000 assessed value produces a $6,000 annual tax bill (2% effective rate). Homestead exemptions and other deductions reduce the taxable value before the mill rate is applied.
This calculator estimates your bill given four inputs: assessed value, mill rate, homestead exemption, and assessment ratio. The result is a planning estimate. Your actual bill may include additional special-district levies, school district adders, fire and water taxes, and one-time bond assessments that don't appear in a simple mill rate. For an exact figure, the county tax collector or assessor publishes the breakdown.
Inputs
Also called tax rate per $1,000 of assessed value
Exemption amount subtracted from assessed value
Percentage of market value used for assessment (100% in most areas)
Results
Annual Tax
$6000.00
Monthly Tax
$500.00
Effective Rate
2.000%
Taxable Value
$300,000
Property Tax Breakdown
| Detail | Value |
|---|---|
| Assessed Value | $300,000 |
| Assessment Ratio | 100% |
| Adjusted Value | $300,000 |
| Homestead Exemption | $0 |
| Taxable Value | $300,000 |
| Mill Rate | 20 per $1,000 |
| Annual Property Tax | $6,000.00 |
| Monthly Property Tax | $500.00 |
| Effective Tax Rate | 2.000% |
Formula
How to use this calculator
- Enter your home's assessed value. Find this on your annual property tax statement or by searching your county assessor's website. Note: assessed value may differ from market value.
- Enter the mill rate. Your bill or assessor's site lists it — sometimes combined (total of all overlapping jurisdictions), sometimes broken into county, city, school, and special district pieces. Sum the components.
- Enter your homestead exemption if your primary residence qualifies. Exemptions vary widely by state — $25,000 in Florida, $40,000–$100,000+ in Texas, $7,000 in California (Prop 13 protects appreciation more than the dollar exemption itself). $0 if not applicable.
- Enter the assessment ratio if your jurisdiction uses one. Most use 100% (assessed equals market). Notable exceptions: California assessments are capped under Prop 13, South Carolina uses 4% for owner-occupied homes, several states use 30–50% ratios.
- Review the estimated annual tax and the effective rate against market value. The effective rate is the cleanest way to compare jurisdictions, since mill rate and assessment ratio interact differently.
- For multi-jurisdiction breakouts, run the calculation once per taxing entity and sum the results. This is how the bill is actually constructed in most counties.
- If escrowing through your mortgage lender, divide the annual tax by 12 to estimate the monthly escrow contribution. Pair this with the mortgage-payment calculator for full PITI.
Worked examples
Typical suburban home — moderate-tax state
$400,000 market value, 100% assessment ratio, no exemption, 18 mill rate (combined county + school) Assessed value = $400,000 Taxable = $400,000 (no exemption) Tax = 400,000 × 18 / 1,000 = $7,200/year Effective rate: 1.80% of market value. Monthly escrow: $600. This is a typical middle-tax state range — Ohio, Michigan, Pennsylvania suburbs are often in this neighborhood.
High-tax state — New Jersey or Illinois suburb
$500,000 market value, 100% assessment ratio, no homestead exemption, 25 mill rate Tax = 500,000 × 25 / 1,000 = $12,500/year Effective rate: 2.50% of market value. Monthly escrow: $1,041. NJ, IL, NH, CT, and parts of NY routinely exceed 2.0% effective rates. On a $500K house, that's an extra $5,000–$8,000/year compared to a moderate-tax state — meaningful for monthly mortgage budgets.
Florida with homestead exemption
$350,000 market value, 100% assessment ratio, $50,000 homestead exemption (FL standard), 16 mill rate Taxable = 350,000 − 50,000 = $300,000 Tax = 300,000 × 16 / 1,000 = $4,800/year Effective rate against market: 4,800 / 350,000 = 1.37%. Without the exemption: $5,600 (1.60%). The homestead exemption matters most as the assessed value rises, because Florida also caps annual assessment increases at 3% for homesteaded properties — the dollar savings compound over time.
When to use this calculator
Use this calculator when shopping for a home (to compare the carrying cost across neighborhoods or counties), planning a property tax escrow for a new mortgage, evaluating whether to appeal an assessment, or estimating tax on an investment property.
The output is most useful for cross-jurisdiction comparison. A $400,000 house with a 0.7% effective rate (Hawaii, Colorado, Wyoming) is dramatically cheaper to own than a $400,000 house with a 2.2% effective rate (NJ, IL, TX) — $5,000+ per year difference, every year, indefinitely. That difference often shifts which city or state is the most affordable.
For rental property analysis, pair this calculator with the cap-rate and rental-property calculators. Property tax is a major line item in net operating income — getting it wrong skews the cap rate calculation in ways that mislead bidding.
It is not a substitute for the actual tax bill. Special-purpose districts (water, fire, mosquito control), bond assessments for school construction or infrastructure, and millage increases between assessment cycles all appear on the real bill but not in the simple mill-rate input. For an exact number, pull the prior year's bill from the county tax collector's website.
Common mistakes to avoid
- Confusing assessed value with market value. In many jurisdictions they're close; in others (California under Prop 13, several states with caps) they can diverge by 50% or more. Always use assessed value with the mill rate, not market.
- Using only the county mill rate. The total mill rate is the sum of all overlapping jurisdictions — county, city, school district, fire district, water district, library district, special improvement districts. The total can be 2–3× the county alone.
- Forgetting the homestead exemption on a primary residence. Most states offer one and it can reduce tax meaningfully ($500–$2,500/year typical). It usually requires a one-time application — many homeowners qualify and never apply.
- Assuming assessed value matches purchase price. Reassessment timing varies. In many states, buying a home triggers reassessment to market; in California, Prop 13 limits the reassessment increase. The first-year tax bill on a newly purchased home is often higher than the prior owner paid.
- Ignoring mill rate increases. Local governments vote on mill rate annually. A rate that's 20 today may be 22 next year if voters approve a school bond or the city operating budget grows. Property tax is the local political pressure point.
- Treating the property tax bill as fixed. Successful assessment appeals are common (often 30–50% of contested cases see reductions). If your assessment seems out of line with neighborhood comps, the local assessor's office has an appeal process — usually with a tight deadline after the assessment notice arrives.
Frequently Asked Questions
Sources & further reading
- State and Local Tax Burdens — annual rankings — Tax Foundation
- Property Taxes — overview from the Lincoln Institute — Lincoln Institute of Land Policy
- Topic 503 — Deductible Taxes (federal SALT deduction) — U.S. Internal Revenue Service
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