Property Tax Calculator

Estimate annual and monthly property taxes based on assessed home value and local millage rates.

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Assessed Value
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Monthly Tax Escrow
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Annual Property Tax
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Formula / Calculation
Property Tax = Assessed Value × (Millage Rate / 100)

A Guide to Property Taxes

Property taxes are local taxes calculated based on the assessed value of real estate. These taxes are primarily used by municipal governments to fund local services like public schools, police and fire departments, libraries, and road maintenance. Because property taxes vary wildly by county and town, they are a critical factor when calculating housing affordability.

Property Tax Factors

Assessed Value vs Market Value

Property tax is based on the assessed value, determined by a local tax assessor. This is often lower than the current fair market value of the home.

Millage Rates

Tax rates are often expressed in "mills." One mill equals $1 of tax per $1,000 of assessed value (which translates to a 0.1% tax rate).

Reassessments

Counties periodically reassess home values. Upgrades, additions, or general market appreciation can cause your property taxes to increase over time.

Tips for Homeowners

Always appeal your property tax assessment if you believe the county has over-valued your home compared to similar neighboring properties.
Apply for a Homestead Exemption. Most states offer deductions on assessed values for primary residences, saving hundreds annually.
Check for other exemptions (senior citizen, veteran, disabled).
Include property tax estimates in your monthly budget (escrow) rather than treating it as a once-a-year shock expense.
Research historical property tax trends in an area before purchasing real estate.

Frequently Asked Questions

What is a good property tax rate?
The national average is around 1.1%. Rates below 0.8% are generally considered low (e.g., Hawaii, Alabama, Colorado), while rates above 2% are high (e.g., New Jersey, Illinois, Texas).
Are property taxes tax-deductible?
Yes, if you itemize your federal tax deductions, you can deduct up to $10,000 (total for state, local, and property taxes) under current SALT (State and Local Tax) limits.
What if I pay off my mortgage? Do property taxes stop?
No. Property taxes are perpetual as long as you own the real estate. If you lack a mortgage escrow account, you are responsible for paying the county directly.