Property Tax Calculator
Estimate your annual and monthly property tax from your home value, local tax rate, assessment ratio and exemptions, and project it forward.
Property Tax Calculator
Property tax is your home’s taxable assessed value multiplied by the local tax rate. On a $400,000 home taxed at 1.0% with no exemptions, the bill is $4,000 a year, or $333 a month. If the assessed value rises 3% a year, the bill reaches about $5,219 in year 10, and you pay about $45,856 over the decade.
How to use this property tax calculator
- Enter your home’s market value.
- Enter your local property tax rate as a percent of assessed value. Your county assessor or tax bill shows it.
- If your area assesses at only part of market value, enter the assessment ratio. Use 100 if unsure.
- Subtract any exemptions, such as a homestead exemption, in dollars.
- Set the yearly increase in assessed value and how many years to project, then read your annual and monthly tax.
The math behind the result
Assessed value = market value × assessment ratio − exemptions
Annual property tax = assessed value × tax rate
Monthly escrow = annual tax ÷ 12. A rate of 1.0% is the same as $10 per $1,000 of value (10 mills).
For the projection, the assessed value grows by your chosen percentage each year and the tax is recalculated.
Worked example
$400,000 home, 1.0% rate, 100% assessment, no exemptions:
- Taxable assessed value: $400,000
- Annual property tax: $4,000 ($333 a month, or $10.00 per $1,000 of value)
- With assessed value growing 3% a year, year 10 tax is about $5,219
- Total paid over 10 years: about $45,856
If the area assesses at 50% of market value and you have a $50,000 exemption, the taxable value falls to $150,000 and the bill to $1,500 at the same 1.0% rate.
How property tax is calculated
Local governments (counties, cities and school districts) set a tax rate to fund services such as schools, roads and police. An assessor estimates your home’s value, applies the local assessment ratio and subtracts exemptions, and the result is multiplied by the combined rate. The same home can have very different bills in neighboring towns because the rates differ.
Typical property tax rates
Effective property tax rates vary widely across the United States, from about 0.3% of home value in Hawaii to more than 2% in states such as New Jersey and Illinois. Because rates are set locally, use your own county or city tax bill rather than a state average. The Tax Foundation publishes rates by state and county for comparison.
Why your bill changes every year
Your tax can rise because the assessed value goes up, because local rates increase, or both. Some states cap how fast the assessed value of a homestead can grow, which is why long-time owners often pay less than new buyers with the same home. If you buy a home, expect the tax to be reassessed at your purchase price in many areas.
Property tax and your mortgage payment
Most lenders collect one-twelfth of your annual property tax with each mortgage payment and pay the bill from an escrow account. It is part of PITI (principal, interest, taxes and insurance). Use our mortgage calculator to see the full payment, and remember escrow amounts are adjusted when your bill changes.
How to lower your property tax
- Claim every exemption you qualify for: homestead, senior, veteran or disability.
- Check your assessment for errors, such as wrong square footage or bedroom count.
- Appeal your assessment if comparable homes are assessed lower. Deadlines are short, often 30 to 90 days.
- Ask about local caps or freezes on assessment increases.
Property taxes may be deductible if you itemize, subject to the federal cap on state and local tax deductions; check the IRS instructions for the current limit.
Key terms
- Assessed value
- The value your local government taxes, often a percentage of market value.
- Mill rate
- Tax per $1,000 of assessed value; 10 mills equals a 1.0% rate.
- Homestead exemption
- A reduction in taxable value for your primary home.
- Escrow
- An account where your lender holds tax and insurance money.
- Effective tax rate
- Annual tax divided by the home’s market value.
Frequently asked questions
How do you calculate property tax?
Multiply your home’s assessed value by the local tax rate. For a $400,000 home with a 1.0% rate and no exemptions, property tax is $4,000 a year.
How much is property tax on a $400,000 home?
It depends on where you live. At a 1.0% rate it is $4,000 a year ($333 a month). At 0.5% it is $2,000, and at 2.0% it is $8,000.
What is a mill rate?
A mill is one-tenth of a cent, so a rate of 10 mills is $10 of tax for every $1,000 of assessed value, or 1.0%.
Why is my property tax so high?
Because your local rate is high, your assessment is high, or you lack exemptions. Check your assessment for errors and ask your county about exemptions and appeals.
Can I deduct property taxes?
If you itemize deductions, you may deduct state and local taxes including property tax up to a federal cap. See the IRS Schedule A instructions for the current limit.
Does property tax go up every year?
It often does, as assessed values and local rates rise. Some states limit annual increases for homesteads.
Is property tax included in my mortgage payment?
Usually yes, through an escrow account. Your lender collects it monthly and pays the bill when due.
Sources and further reading
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Figures in the examples are illustrative and use the inputs shown. Market rates and program rules change; confirm current terms with your lender or the linked official sources before making a decision.
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Disclaimer: This calculator provides estimates for educational purposes only and is not financial, tax, or legal advice. Results depend on the figures you enter and on simplified assumptions; actual rates, taxes, and outcomes will differ. Consult a qualified professional before making financial decisions.