Property Tax Calculator

Property tax is calculated by multiplying the taxable assessed value of your property by the local tax rate (usually expressed as a mill rate). The process has three steps. First, your local assessor determines your property's market value. Second, they apply an assessment ratio to get the assessed value — for example, a home worth $400,000 assessed at 80% has an assessed value of $320,000. Third, any exemptions (such as a homestead exemption) are subtracted, and the remaining taxable value is multiplied by the mill rate. A 15-mill rate equals $15 of tax per $1,000 of taxable assessed value, so $300,000 taxable × 15 mills = $4,500 per year.

A mill rate (or millage rate) is the tax rate applied to your property's assessed value, expressed in mills — one mill equals $1 of tax per $1,000 of assessed value. For example, a mill rate of 20 means you owe $20 for every $1,000 of assessed value. A home with a $250,000 assessed value and a 20-mill rate would owe $5,000 annually. Mill rates vary widely by municipality and are set by local taxing authorities including cities, counties, school districts, and special districts. You can find your current mill rate on your property tax bill or your county assessor's website. The US average effective property tax rate is roughly 1.1%, but rates range from under 0.3% (Hawaii) to over 2.2% (New Jersey).

A homestead exemption is a reduction in the assessed value or taxable value of your primary residence, which lowers your property tax bill. Most states offer some form of homestead exemption to owner-occupants who use the property as their primary home. Common exemption amounts range from $25,000 to $50,000 off assessed value, though some states use a percentage reduction. For example, Florida offers a $25,000 exemption on the first $50,000 of assessed value for primary residences. Texas offers exemptions of at least $40,000 from assessed value for school district taxes. You typically must apply for a homestead exemption with your county assessor — it is not automatic. Deadlines, eligibility requirements, and exemption amounts vary by county and state.

There are several legal ways to reduce your property tax. First, apply for all available exemptions — homestead, senior, disability, veteran, and agricultural exemptions can significantly reduce taxable value. Second, appeal your assessment if you believe your home has been over-valued. You can hire an appraiser to get a professional opinion of market value and submit a formal appeal to your county assessor or a local board of review. Studies suggest that 30–60% of all property tax appeals result in a reduction. Third, check for errors in your property record — incorrect square footage, bedroom count, or lot size can inflate your assessed value. Fourth, if you're a senior, disabled veteran, or low-income homeowner, look for additional tax freeze or circuit breaker programs in your state.

As of recent data, the states with the highest effective property tax rates are New Jersey (2.23%), Illinois (2.08%), Connecticut (1.79%), New Hampshire (1.77%), and Vermont (1.71%). New Jersey homeowners with a median-value home pay over $8,000 per year on average. At the other end, Hawaii has the lowest effective rate at approximately 0.28%, followed by Alabama (0.41%), Colorado (0.51%), Nevada (0.48%), and Delaware (0.43%). Hawaii's low rate is partially offset by very high home values. Texas has a relatively high rate (1.68%) but no state income tax, making total tax burden a more nuanced comparison. Keep in mind that effective rates are averages — actual taxes depend heavily on your specific county, city, and school district.

For most homeowners with a mortgage, yes — property taxes are collected as part of your monthly mortgage payment through an escrow account. Your lender collects roughly one-twelfth of your estimated annual property tax each month, holds those funds in escrow, and pays the tax bill on your behalf when it comes due (usually once or twice a year). This means your actual monthly housing cost includes principal, interest, taxes, and insurance — commonly abbreviated PITI. If property taxes rise (for example, after reassessment), your lender will adjust your monthly escrow payment. Homeowners who own their property outright and those with certain loan types may pay property taxes directly to the county rather than through escrow.