Property Tax Calculator

Property tax is an annual tax levied by local governments (counties, municipalities, and school districts) on the value of real estate. It is one of the primary ways local governments fund public services such as schools, roads, emergency services, parks, and libraries. For most homeowners, property tax is one of the largest recurring costs of homeownership after the mortgage payment.

Property tax is calculated by multiplying the assessed value of the property by the local tax rate (also called the mill rate or millage rate). The assessed value may differ from the market value — some jurisdictions assess at 100% of market value, others at 60%, 80%, or some other fraction.

The basic formula is:

Annual Tax = Assessed Value × (Tax Rate ÷ 100)

For example, a home assessed at $350,000 with a 1.2% tax rate would have an annual property tax of $4,200, or $350 per month.

Most jurisdictions offer exemptions that reduce the taxable assessed value:

• Homestead exemption: Available for primary residences, reducing assessed value by a fixed amount (e.g., $25,000–$50,000).
• Senior exemption: Additional reductions for homeowners above a certain age.
• Veteran exemption: Reductions for military veterans.
• Disability exemption: Available for qualifying disabled homeowners.

Effective property tax rates vary dramatically across the United States. States with high property taxes include New Jersey (around 2.2%), Illinois (2.1%), and Texas (1.8%). States with low rates include Hawaii (0.3%), Alabama (0.4%), and Colorado (0.5%). The national average effective property tax rate is approximately 1.1%.

Keep in mind that states with low income taxes often have higher property taxes to compensate for revenue needs, and vice versa. Local school district levies can also add significant amounts to the effective rate in your specific neighborhood.

• Apply for all exemptions: Homestead, senior, veteran, and disability exemptions can save hundreds to thousands per year. Many homeowners fail to claim exemptions they qualify for.
• Appeal your assessment: If you believe your property is over-assessed, you can appeal to your local assessor's office. Roughly 30–60% of successful appeals result in a reduced assessment.
• Review comparable sales: Gather recent sales data for similar properties in your area to support an assessment appeal.
• Understand abatements: Some areas offer tax abatements for new construction, renovations, or economic development — check what your municipality offers.