Tax

Property Tax Calculator

Calculate your annual and monthly property tax based on assessed value, tax rate or millage rate, and applicable exemptions.

Quick Answer

Property Tax = (Assessed Value - Exemptions) x Tax Rate. For a $350,000 assessed home with a $50,000 homestead exemption and a 1.5% tax rate, annual property tax is $4,500, or $375 per month. The national average effective property tax rate is approximately 1.1% of assessed value.

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Enter the total combined tax rate from your tax bill

Exemptions (optional)

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Disclaimer:This calculator provides estimates for informational purposes only. Actual property tax amounts depend on your jurisdiction's assessment practices, exemption rules, and rate structure. Special assessments, improvement districts, and supplemental taxes may apply. Contact your local tax assessor's office for exact tax amounts.

About This Tool

The Property Tax Calculator estimates your annual and monthly property tax bill based on your property's assessed value, the applicable tax rate, and any exemptions you qualify for. Property taxes are the primary funding source for local services including public schools, fire departments, libraries, and road maintenance. Understanding how your property tax is calculated helps you budget accurately and identify potential savings through exemptions.

The basic formula is straightforward: Property Tax = (Assessed Value - Exemptions) x Tax Rate. However, the details vary significantly by jurisdiction. Some areas express rates as percentages (e.g., 1.5%), while others use millage rates (e.g., 15 mills, where 1 mill = $1 per $1,000 of value). This calculator supports both formats so you can enter the rate exactly as shown on your tax bill.

Understanding Assessed Value

Your property's assessed value is determined by the local tax assessor and may differ significantly from what your home would sell for. Many jurisdictions assess property below market value using an assessment ratio. For example, if your home's market value is $400,000 and your county uses an 85% assessment ratio, the assessed value would be $340,000. Some states like California limit annual assessment increases to 2% under Proposition 13, meaning long-time homeowners may have assessed values far below current market value.

Common Property Tax Exemptions

Property tax exemptions reduce your taxable value, directly lowering your tax bill. The homestead exemption is the most common, available to owner-occupants of their primary residence. Exemption amounts vary widely: Texas offers up to $100,000 for school taxes, Florida provides $50,000, and many states offer $10,000 to $25,000. Senior citizen exemptions typically require the homeowner to be 65 or older, sometimes with income restrictions. Veteran and disabled veteran exemptions can provide substantial relief, with 100% disabled veterans often receiving complete property tax exemption in many states.

How Property Tax Rates Are Set

Property tax rates are set by multiple overlapping taxing authorities: the county, city or town, school district, and sometimes special districts for fire protection, libraries, or other services. Your total rate is the sum of all these individual levies. This is why two homes in the same county can have different tax rates -- they may be in different school districts or city boundaries. Rates are typically recalculated annually based on the jurisdiction's budget needs and total assessed property values in the area.

Appealing Your Property Tax Assessment

If you believe your property's assessed value is too high, you have the right to appeal in virtually every jurisdiction. The appeal process typically involves filing a formal protest with your county assessor within a specified window (often 30-90 days after receiving your assessment notice). To support your appeal, gather evidence such as recent comparable sales, an independent appraisal, or documentation of property defects that reduce value. Many homeowners successfully reduce their assessed values by 5-15% through the appeal process, resulting in meaningful tax savings for years to come.

Property Tax and Your Mortgage

If you have a mortgage, your lender likely requires you to pay property taxes through an escrow account. Each month, a portion of your mortgage payment goes into escrow to cover the annual property tax bill. The lender pays the tax on your behalf when it comes due. Your escrow amount is adjusted annually based on actual tax bills, which can cause your monthly payment to increase or decrease. Understanding your property tax helps you anticipate escrow changes and budget for any adjustments to your monthly mortgage payment.

Frequently Asked Questions

What is the difference between assessed value and market value?
Market value is what your home would sell for on the open market. Assessed value is the value assigned by your local tax assessor for tax purposes, which is often lower than market value. Many jurisdictions assess property at a fraction of market value -- for example, some counties assess at 80% or 90% of market value. The assessment ratio varies by state and county. Your assessed value is typically found on your property tax bill or your county assessor's website.
What is a millage rate and how does it differ from a tax rate percentage?
A millage rate (or mill rate) expresses property tax as dollars per $1,000 of assessed value. One mill equals $1 of tax per $1,000 of assessed value, or 0.1%. For example, a millage rate of 25 mills means you pay $25 per $1,000 of assessed value, which equals a 2.5% tax rate. Some jurisdictions quote rates in mills while others use percentages. This calculator supports both formats -- simply select your rate type and enter the number from your tax bill.
What is a homestead exemption?
A homestead exemption reduces the taxable value of your primary residence. Most states offer some form of homestead exemption to owner-occupants. The exemption amount varies widely: Texas offers up to $100,000 for school district taxes, Florida provides a $50,000 exemption, and many other states offer $5,000 to $50,000. You typically must apply for the exemption through your county assessor's office. Investment properties and second homes do not qualify for homestead exemptions.
How often is property value reassessed?
Reassessment schedules vary by jurisdiction. Some counties reassess annually, others every 2-5 years, and a few states like California (under Proposition 13) limit reassessment increases to 2% per year unless the property changes ownership. When property values rise rapidly, reassessment can lead to significant tax increases. Many jurisdictions allow you to appeal your assessment if you believe the assessed value exceeds fair market value. Check your county assessor's website for your local reassessment schedule.
Can I deduct property taxes on my federal income tax return?
Yes, property taxes are deductible if you itemize deductions on your federal return, but they are subject to the $10,000 SALT (State and Local Tax) cap introduced by the Tax Cuts and Jobs Act. This $10,000 limit includes all state and local taxes combined: property taxes, state income taxes, and local taxes. If your total SALT exceeds $10,000, you cannot deduct the excess. For many homeowners in high-tax states, this cap significantly limits the federal tax benefit of property taxes.
What exemptions are available besides the homestead exemption?
Beyond homestead exemptions, many jurisdictions offer additional property tax relief. Senior citizen exemptions typically require the homeowner to be 65+ and may have income limits. Veteran exemptions (sometimes called disabled veteran exemptions) can range from partial reductions to complete exemption for 100% disabled veterans. Some areas offer exemptions for surviving spouses, disabled persons, agricultural use, and historic properties. Check with your local tax assessor for available exemptions in your area.

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