Property Tax Calculator
Estimate your annual and monthly property tax based on your home value and state.
How is property tax calculated?
Property tax is calculated by multiplying your home's assessed value by your local effective property tax rate, which is set by your state and county to fund schools, roads, and municipal services. This calculator uses average state-level effective property tax rates to give you a quick estimate — your actual bill may vary based on your county, local millage rates, and any assessed exemptions.
Why does property tax vary so much by state?
Effective property tax rates differ widely across the country because each state and locality sets its own rates and assessment rules. States like New Jersey and Illinois have some of the highest effective rates in the country, while states like Hawaii and Alabama have among the lowest, often because they rely more heavily on other taxes such as income or sales tax.
Property tax vs. mortgage payment
Property tax is typically just one part of your total monthly housing cost. If you have an escrow account, your lender collects a portion of your annual property tax bill along with your mortgage payment each month, then pays the tax bill on your behalf when it's due. Use this calculator to see how much of your housing budget property tax alone might take up.
Frequently Asked Questions
How is property tax calculated?
Property tax is calculated by multiplying your home's assessed value by the local effective property tax rate. This rate is set by your state, county, and city to fund schools, roads, and other public services, and it can vary significantly even between neighboring counties.
What states have the highest property taxes?
States like New Jersey, Illinois, New Hampshire, and Connecticut consistently rank among the highest for effective property tax rates, often exceeding 1.8-2.2% of a home's assessed value each year.
What states have the lowest property taxes?
Hawaii, Alabama, Colorado, and Nevada typically have some of the lowest effective property tax rates in the country, often under 0.6% of assessed home value, though other state and local taxes may be higher to compensate.
Is property tax included in my mortgage payment?
If you have an escrow account, which is common when your down payment is less than 20%, your lender collects roughly one-twelfth of your annual property tax bill with each mortgage payment and pays the tax authority directly when it's due. Without escrow, you pay property tax separately, usually once or twice a year.
Can I lower my property tax bill?
Many homeowners can reduce their property tax through exemptions such as homestead, senior, veteran, or disability exemptions, or by formally appealing their home's assessed value if they believe it's higher than fair market value. Check with your local county assessor's office for programs you may qualify for.
Is property tax deductible on my federal taxes?
Property tax may be deductible if you itemize deductions, but the SALT (State and Local Tax) deduction is currently capped at $10,000 combined for property tax and state income or sales tax. This cap significantly limits the benefit for homeowners in high property tax states.
How often is property tax paid?
Payment schedules vary by county — some require a single annual payment, while others split the bill into two or four installments per year. If your taxes are escrowed with your mortgage lender, you won't need to worry about the schedule since payments are made on your behalf.
Does a higher home value always mean higher property tax?
Generally yes, since property tax is calculated as a percentage of your home's assessed value, but the effective rate also matters a great deal. A moderately priced home in a high-tax state can have a larger property tax bill than a much more expensive home in a low-tax state.