Property Tax Calculator
Estimate your annual and monthly property tax. Enter your home value, assessment ratio, and local tax rate to calculate your property tax obligation.
Understanding Property Tax
Property tax is a tax paid on real estate owned by an individual or entity. It is typically levied by local governments (county, city, or school district) and is one of the primary funding sources for local services such as schools, roads, police and fire departments, and infrastructure maintenance. In 2024, property taxes generated over $600 billion in revenue for local governments across the US.
Property Tax Formula
The basic formula is: Annual Property Tax = (Market Value x Assessment Ratio) x Tax Rate. The tax rate may be expressed as a percentage (e.g., 1.5%) or in mills (e.g., 15 mills = 1.5%). One mill equals $1 of tax per $1,000 of assessed value. For example, a home worth $350,000 with an 80% assessment ratio and a 20-mill tax rate would owe $5,600 per year.
Property Tax by State (2024 Averages)
- New Jersey: ~2.23% (highest in the nation)
- Illinois: ~2.07%
- Connecticut: ~1.96%
- Texas: ~1.68% (no state income tax, higher property tax)
- New York: ~1.62%
- National Average: ~1.10%
- California: ~0.71% (Prop 13 limits increases)
- Colorado: ~0.51%
- Hawaii: ~0.27% (lowest in the nation)
Tips for Managing Property Taxes
- Review your assessment notice carefully each year for errors in property size, features, or valuation
- Research comparable sales in your area to verify your assessment is fair
- Apply for all exemptions you qualify for (homestead, senior, veteran, disability)
- File an appeal promptly if you believe your assessment is too high
- Consider an escrow account through your mortgage lender to spread payments over 12 months
- Be aware that home improvements (additions, renovations) may trigger reassessment
Important Notes
Property tax rates and assessment practices vary widely between jurisdictions. Always check with your local county assessor or tax collector for the most accurate and up-to-date rates. Remember that property taxes can change year to year based on local budget needs and reassessments. If you are buying a home, factor property taxes into your monthly budget alongside mortgage payments, insurance, and maintenance costs.