Property Tax Calculator
Calculate annual and monthly property tax payments based on assessed value and local tax rate.
Results
Visualization
How It Works
Property taxes are levied by local governments based on the assessed value of your property and the local tax rate (often expressed as a mill rate). They fund schools, roads, emergency services, and other municipal services. Understanding your property tax helps you budget for homeownership and evaluate the true cost of living in a particular area.
The Formula
Base Tax = Taxable Value x Tax Rate
Annual Tax = Base Tax + Special Assessments
Monthly Tax = Annual Tax / 12
Variables
- Assessed Value — The value assigned to the property by the local tax assessor, often 80-100% of market value depending on jurisdiction
- Tax Rate — The local property tax rate, expressed as a percentage. A mill rate of 12 mills equals 1.2%
- Exemptions — Reductions in assessed value for qualifying homeowners (homestead, senior, veteran, disability exemptions)
- Special Assessments — Additional charges for specific local improvements like sidewalks, sewers, or school bonds
Worked Example
A home assessed at $300,000 with a 1.2% tax rate and a $25,000 homestead exemption: taxable value = $275,000, base tax = $275,000 x 0.012 = $3,300. With no special assessments, the annual tax is $3,300 or $275/month.
Practical Tips
- Check your county assessor website to verify your assessed value is accurate and appeal if it seems too high.
- Apply for all exemptions you qualify for, including homestead, senior citizen, veteran, and disability exemptions.
- Property taxes are deductible on federal income taxes up to the $10,000 SALT cap when you itemize deductions.
- Tax rates vary dramatically by location. Research rates before buying since they significantly impact your total housing cost.
- Reassessments can cause large increases. Budget for potential 5-10% annual increases in high-growth areas.
Frequently Asked Questions
What is the difference between assessed value and market value?
Market value is what a buyer would pay for your home on the open market. Assessed value is the value your local tax assessor assigns for tax purposes, which is often 80% to 100% of market value depending on your state and jurisdiction. Some states assess at a fixed percentage of market value.
How do I appeal my property tax assessment?
Contact your county assessor office to file a formal appeal. Gather evidence including recent comparable sales, an independent appraisal, or documentation of property defects. Most jurisdictions have a specific window (often 30-60 days after the assessment notice) during which you can file an appeal.
What is a homestead exemption?
A homestead exemption reduces the taxable value of your primary residence by a fixed dollar amount. For example, a $25,000 homestead exemption on a $300,000 assessed value means you only pay tax on $275,000. Most states offer some form of homestead exemption but requirements and amounts vary.
How often are properties reassessed?
Reassessment frequency varies by jurisdiction. Some counties reassess annually, others every 3-5 years, and some states like California (Proposition 13) only reassess upon sale or major improvement. More frequent reassessments mean your tax bill tracks market values more closely.
Are property taxes included in my mortgage payment?
If you have an escrow account (required by most lenders for loans with less than 20% down), property taxes are collected monthly as part of your mortgage payment and paid to the county by your lender. If you have no escrow, you pay property taxes directly, usually semi-annually.
Sources
- Tax Foundation: Property Tax Rates by State
- IRS: Topic No. 503 Deductible Taxes
- Lincoln Institute: 50-State Property Tax Comparison