Property Tax Calculator
Assessed value
Annual rate
Homestead, senior, etc.
Annual Property Tax
$5,000.00
Monthly Property Tax
$416.67
Often included in mortgage escrow
Assessed Value
$400,000.00
No exemptions applied
Effective Tax Rate
1.250%
Actual rate on home value
Tax Calculation
Property Tax by Home Value
| Home Value | Annual Tax | Monthly |
|---|---|---|
| $200,000.00 | $2,500.00 | $208.33 |
| $300,000.00 | $3,750.00 | $312.50 |
| $400,000.00 | $5,000.00 | $416.67 |
| $500,000.00 | $6,250.00 | $520.83 |
| $600,000.00 | $7,500.00 | $625.00 |
| $750,000.00 | $9,375.00 | $781.25 |
| $1,000,000.00 | $12,500.00 | $1,041.67 |
Average Property Tax Rates by State
| State | Avg Rate | Tax on $400,000.00 |
|---|---|---|
| New Jersey | 2.23% | $8,920.00 |
| Illinois | 2.08% | $8,320.00 |
| New Hampshire | 1.93% | $7,720.00 |
| Connecticut | 1.79% | $7,160.00 |
| Vermont | 1.76% | $7,040.00 |
| Texas | 1.69% | $6,760.00 |
| Wisconsin | 1.68% | $6,720.00 |
| Nebraska | 1.65% | $6,600.00 |
| New York | 1.62% | $6,480.00 |
| Ohio | 1.56% | $6,240.00 |
| Pennsylvania | 1.53% | $6,120.00 |
| Iowa | 1.52% | $6,080.00 |
| Rhode Island | 1.46% | $5,840.00 |
| Michigan | 1.44% | $5,760.00 |
| Kansas | 1.41% | $5,640.00 |
| California | 0.76% | $3,040.00 |
| Colorado | 0.55% | $2,200.00 |
| Hawaii | 0.28% | $1,120.00 |
Common Property Tax Exemptions
- Homestead Exemption: Reduces taxable value for primary residence (varies by state)
- Senior Exemption: Additional reduction for homeowners 65+ (income limits may apply)
- Veteran Exemption: For qualifying veterans or surviving spouses
- Disability Exemption: For homeowners with qualifying disabilities
- Property tax rates and exemptions vary significantly by state and county - check your local tax assessor
About the Property Tax Calculator
The Property Tax Calculator estimates the annual and monthly property tax you owe on a home based on its assessed value and the local tax rate, often expressed as a millage rate or a percentage. You enter the property's assessed or market value and the applicable rate, and the tool returns the yearly tax bill plus the monthly amount that's typically folded into your mortgage escrow payment.
Property taxes fund local services — schools, roads, police, fire, and libraries — and rates vary widely between states, counties, and even neighborhoods. The calculation usually multiplies an assessed value (which may differ from market value due to assessment ratios or caps) by a tax rate, then applies any exemptions such as homestead, senior, or veteran reductions. Understanding how assessment and exemptions interact explains why two similar homes can carry very different tax bills.
Homebuyers use this tool to factor the true monthly cost of ownership into their budget, since taxes can add hundreds of dollars to a mortgage payment beyond principal and interest. It complements the Closing Costs Calculator, which collects prepaid property taxes at settlement, and the Cost of Living Calculator when comparing the carrying cost of homes across different states. Property taxes also directly affect the home equity portion of your Net Worth Calculation over time.
For an accurate estimate, find your jurisdiction's current rate and your home's assessed value on the county assessor's website rather than relying on the sale price, which may be higher or lower than the assessment. Check for exemptions you qualify for, since claiming a homestead exemption can meaningfully cut the bill. Remember that rates and assessments can rise annually, so budget for modest increases rather than assuming today's figure stays fixed.
Frequently asked questions
- How is property tax calculated?
- Property tax is generally the assessed value of your home multiplied by the local tax rate (or millage rate), minus any exemptions you qualify for. Assessed value may differ from market value.
- What is a millage rate?
- A millage rate expresses property tax as dollars owed per $1,000 of assessed value. For example, a rate of 20 mills equals $20 of tax per $1,000, or 2% of assessed value.
- What is a homestead exemption?
- A homestead exemption reduces the taxable assessed value of your primary residence, lowering your tax bill. Eligibility and amounts vary by state and locality, and you usually must apply for it.
- Why is property tax included in my mortgage payment?
- Many lenders collect property tax monthly through an escrow account and pay the bill on your behalf when due. This spreads the annual tax into manageable monthly amounts and ensures the bill gets paid.
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