Property Tax Calculator

Estimate your annual and monthly property tax payments based on your home's assessed value and local tax rate.

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Built by Abiot Y. Derbie, PhD — Postdoctoral Research Fellow. Quantitative researcher specializing in statistical modeling and data-driven decision systems.

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Annual Property Tax
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Monthly (Escrow)
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Assessed Value
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Effective Rate

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Property Tax Benchmarks

LIVE DATA
National average effective rate1.07%
Lowest state (Hawaii)0.27%
Highest state (New Jersey)2.47%
Median annual property tax$3,500
SALT deduction cap$10,000 (federal)
Assessment ratio range50–100% of market value
Average annual tax increase2–4%
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Source: Census Bureau, Tax Foundation 2025

Property Tax by Rate

National avg: 1.07%
Rate RangeAnnual on $400KMonthlyExample States
<0.50%$2,000$167HI, AL, WV, CO
0.50–1.00%$2,000–$4,000$167–$333CA, AZ, SC, TN
1.00–1.50%$4,000–$6,000$333–$500FL, OH, GA, NC
1.50–2.00%$6,000–$8,000$500–$667TX, NY, WI, PA
>2.00%$8,000+$667+NJ, IL, CT, NH

Rates vary significantly by county within each state.

How Do You Compare?

UPDATES LIVE
EFFECTIVE RATE
1.07%
Average
50th percentile
50th percentile
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Showing median values. Click Calculate for your numbers.

What This Means For You

UPDATES LIVE

Your property tax of $4,280/yr (1.07%) costs $357/mo.

Annual property tax
$4,280
Total annual tax based on assessed value and rate
Monthly amount
$357/mo
Monthly property tax — often escrowed into mortgage
Assessed value
$400,000
Taxable value assigned by your county
Effective rate
1.07%
Actual tax as a percentage of market value
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Your Complete Picture

CONNECTED

How this connects to your broader financial picture.

What Should You Do Next?

UPDATES LIVE

Based on your property tax calculation.

Property tax never goes awayUnlike mortgage, property tax continues after payoff. Budget 2–4% annual increases.
→ Housing Expense Calculator
Appeal if your assessment is too highIf comps sold for less, file an appeal. Success rates are 30–40%.
→ Estimate home value

Property Tax Check

FactorStatusAction
Rate vs national avgReviewCompare your effective rate to the 1.07% national average.
SALT cap impactReviewProperty + state income tax over $10K loses deductibility.
Assessment accuracyReviewCheck assessed value against recent sales. → Estimate
Exemptions availableExploreHomestead, senior, veteran exemptions reduce taxable amount.
Escrow accountOn TrackMost lenders escrow tax into monthly mortgage payment.

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This calculator is for informational and educational purposes only. Results are estimates based on the information you provide and standard financial formulas. This is not financial advice. Consult a qualified financial advisor for decisions specific to your situation. Full Disclaimer

Learn More About Property Taxes

Things to Know

Essential concepts for understanding your results

How It Works
How are property taxes calculated?

Property Tax = Assessed Value × Tax Rate (Mill Rate). Assessed value may differ from market value — many jurisdictions assess at 80-100% of fair market value. Tax rates are expressed as mills (1 mill = $1 per $1,000 of assessed value) or percentages. A $350,000 home at 1.2% tax rate pays $4,200/year. Rates vary enormously: 0.27% in Hawaii to 2.23% in Illinois — a $350,000 home pays $945 in Hawaii vs $7,805 in Illinois.

Appeals
Can you appeal your property tax assessment?

Yes — and you should if your assessed value exceeds your home's actual market value. 40-60% of appeals result in reduced assessments. Process: review your assessment notice, gather comparable sales data showing lower values, file an appeal with your county assessor (deadlines vary, typically 30-90 days after notice), and present your case. Even a 5% reduction on a $400,000 assessment saves $240-500/year depending on your rate.

Exemptions
What property tax exemptions are available?

Common exemptions: Homestead (reduces assessed value by $25,000-75,000 for primary residence). Senior/elderly (reduced rates or frozen assessments at age 65+). Veteran/disability (partial to full exemption). Agricultural (lower rate for farm property). Exemptions are not automatic — you must apply with your county assessor. Many homeowners miss $500-2,000+ in annual savings by not filing for exemptions they qualify for.

Escrow
How does property tax escrow work?

Most mortgage lenders collect property taxes monthly as part of your mortgage payment and hold the funds in an escrow account. The lender pays the tax bill on your behalf when due. Annual escrow analysis adjusts your monthly payment if tax assessments change. If taxes increase $600/year, your monthly payment rises $50. Escrow protects the lender by ensuring taxes are paid — unpaid property taxes create a lien that takes priority over the mortgage.

How Property Taxes Work

Whether you are looking for a calculate property tax, how to calculate property tax, property tax formula, free property tax calculator, property tax mortgage, or home property tax — this free property tax calculator provides accurate estimates to help you plan and make informed financial decisions.

Property tax is the largest ongoing cost of homeownership after the mortgage itself, yet many buyers overlook it when budgeting. Unlike income tax, property tax is levied by local governments (county, city, school district) based on the assessed value of your home. The average US effective property tax rate is approximately 1.1% of home value, but rates vary wildly — from 0.27% in Hawaii to 2.23% in New Jersey.

On a $350,000 home: property tax ranges from $945/year (Hawaii) to $7,805/year (New Jersey). That is a $6,860 annual difference on the same-value home — equivalent to $572/month or roughly the cost of an additional car payment. When comparing home prices across states, property tax is the hidden variable that makes some "affordable" markets expensive and some "pricey" markets more reasonable than they appear.

Property tax funds local services: public schools (typically 40-60% of the total), police and fire departments, roads, parks, libraries, and local government operations. Higher property taxes usually correlate with better public schools and services — which in turn supports higher property values. This creates a self-reinforcing cycle in high-tax, high-service communities.

How Your Property Tax Is Calculated

Property tax = Assessed Value × Tax Rate (Mill Rate). Both components vary by location and are worth understanding independently.

Assessed value is determined by your county assessor and may differ from market value. Some states assess at 100% of market value; others use a fraction (e.g., Georgia assesses at 40%, South Carolina at 4-6% for primary residences). Assessment ratios, homestead exemptions, and caps on annual increases all affect the taxable value.

Tax rate (mill rate) is set annually by each taxing authority. One "mill" equals $1 per $1,000 of assessed value. A total mill rate of 25 mills means $25 per $1,000 assessed value, or 2.5%. You typically pay separate levies to the county, city, school district, and special districts (fire, water, library) — these combine into your total rate.

Homestead exemption: Most states offer a reduction in assessed value for primary residences. A $50,000 homestead exemption on a $350,000 home means you pay tax on $300,000 instead. Florida's homestead exemption is especially generous: up to $50,000 in value plus a 3% annual cap on assessment increases (Save Our Homes). Texas offers $100,000 for school district taxes.

Property Tax by State: The Full Picture

Lowest effective rates: Hawaii (0.27%), Alabama (0.39%), Colorado (0.49%), Louisiana (0.51%), South Carolina (0.53%). These states make up revenue through other taxes — Hawaii has high excise taxes, Colorado relies on income and sales tax.

Highest effective rates: New Jersey (2.23%), Illinois (2.08%), Connecticut (2.00%), New Hampshire (1.93%), Vermont (1.83%). These states typically have lower or no income/sales taxes to compensate — New Hampshire has no income or sales tax but the 4th highest property tax.

The SALT deduction (2026): You can deduct up to $40,000 in state and local taxes (including property tax) on your federal return if you itemize. The cap increased from $10,000 to $40,000 in 2026 legislation. For homeowners in high-tax states, this dramatically improves the federal tax benefit of property tax payments. On $15,000 in property tax in the 24% bracket: federal tax savings of $3,600.

How to Lower Your Property Tax

Challenge your assessment: 30-60% of properties are over-assessed, according to the National Taxpayers Union. Compare your assessed value to recent sales of similar homes in your neighborhood. If your assessment is higher, file an appeal with your county assessor — the process is typically free and takes 30-60 minutes. Success rates are 30-50%, with average reductions of $1,000-$3,000/year.

Apply for all exemptions: Homestead, senior, veteran, disability, and agricultural exemptions can reduce your assessed value by $25,000-$100,000+. Many homeowners miss these because they require application — they are not automatic. Check your county assessor's website for all available exemptions and apply immediately after purchase.

Verify accuracy: Check your property card at the assessor's office for errors in square footage, lot size, bedroom/bathroom count, or building condition. Clerical errors inflating your home's characteristics mean inflated taxes. Corrections are usually straightforward once identified.

Understand timing: If you plan to renovate, consider timing relative to the assessment date. Major improvements (adding a bedroom, finishing a basement) increase assessed value and taxes. In some jurisdictions, permits trigger reassessment. A $50,000 kitchen renovation at a 2% tax rate adds $1,000/year in perpetuity.

Frequently Asked Questions

How much is property tax on a $300,000 home?
At the national average rate of 1.1%: approximately $3,300/year ($275/month). But this varies enormously by location — from $810/year in Hawaii (0.27%) to $6,690/year in New Jersey (2.23%). Enter your specific location and home value above for an accurate estimate including local rates and exemptions.
Can I deduct property tax on my federal return?
Yes, if you itemize deductions. Property tax is part of the SALT (State and Local Tax) deduction, capped at $40,000 for 2026. If your total state income tax + property tax exceeds the standard deduction ($16,100 single / $32,200 married), itemizing saves you money. In the 24% bracket, a $10,000 property tax deduction saves $2,400 in federal tax.
How do I appeal my property tax assessment?
File a formal appeal with your county assessor's office (usually free, deadline typically 30-90 days after assessment notice). Provide evidence: recent comparable sales below your assessed value, photos of property condition issues, or documentation of assessment errors. Success rates are 30-50%. Even a modest reduction of $10,000-$20,000 in assessed value saves $200-$400/year permanently.
Which states have the lowest property taxes?
Hawaii (0.27%), Alabama (0.39%), Colorado (0.49%), Louisiana (0.51%), and South Carolina (0.53%) have the lowest effective rates. However, these states may have higher income or sales taxes to compensate. The total tax burden — not just property tax — determines your true cost of living in each state.
Do property taxes go up every year?
Usually yes, through two mechanisms: rising assessed values (as home prices increase) and rising tax rates (as local government budgets grow). Some states cap annual assessment increases (California's Prop 13: 2%/year, Florida's Save Our Homes: 3%/year). Without caps, a hot housing market can double your property tax over 5-7 years even with no rate changes.
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