Property Tax Calculator
Estimate your annual and monthly property taxes based on home value and local tax rates.
How Property Tax Works
Property tax is calculated by multiplying your home’s assessed value by the local tax rate. The assessed value may differ from market value depending on your jurisdiction.
Tax rates vary significantly by state and even by county. They typically range from 0.3% to over 2% of the property’s assessed value.
Assessed vs Market Value
Many states assess property at less than 100% of market value. For example, if your home is worth $400,000 and your state assesses at 80%, your taxable value would be $320,000.
Check with your local assessor’s office to understand your area’s assessment ratio and when reassessments occur.
Ways to Reduce Property Tax
- Homestead exemption: Many states offer exemptions for primary residences, reducing taxable value by $25,000-$50,000.
- Senior exemptions: Homeowners 65+ often qualify for additional reductions or tax freezes.
- Appeal your assessment: If your assessed value seems high, you can appeal. Success rates are often 30-40%.
- Check for errors: Review your property record for mistakes in square footage, lot size, or features.
Important Considerations
- Payment schedule: Property taxes may be due annually, semi-annually, or quarterly depending on your location.
- Escrow accounts: If you have a mortgage, taxes are often included in your monthly payment and held in escrow.
- Tax liens: Unpaid property taxes can result in liens against your property and eventually foreclosure.
- Deductibility: You can deduct up to $10,000 in state and local taxes (SALT) including property tax on federal returns.
Frequently Asked Questions
How is property tax calculated?
Annual Property Tax = Home Value × (Tax Rate / 100). Monthly tax = Annual / 12. If your home is assessed at $350,000 in a county with a 1.2% effective tax rate, your annual tax is $4,200 and your monthly escrow contribution is $350. The calculator also projects 10-year totals, optionally adjusted for home appreciation.
Which US state has the highest and lowest property tax rates?
New Jersey has the highest effective property tax rate at approximately 2.47%, while Hawaii has the lowest at roughly 0.28%. The national average is about 1.10%. The calculator includes a built-in reference table with rates for 15 states to help you benchmark your local rate.
What is the SALT deduction cap?
The State and Local Tax (SALT) deduction cap, in place since 2018, limits the amount of state and local taxes you can deduct on your federal return to $10,000 per household per year ($5,000 for married filing separately). If your property taxes exceed $10,000, the excess plus any state income taxes cannot be deducted federally.
What is a homestead exemption and how does it reduce my bill?
A homestead exemption reduces the assessed value of your primary residence for tax purposes. For example, a $50,000 homestead exemption on a home assessed at $350,000 means you are taxed on only $300,000. Rules and amounts vary widely by state and county; the calculator does not model exemptions but notes they exist.
Can I appeal my property tax assessment?
Yes — most jurisdictions allow homeowners to appeal an assessment they believe is too high. If the assessed value of your home is higher than comparable sales in your area, you can file a formal appeal with your local assessor’s office. A successful appeal can lower both your assessed value and your annual tax bill permanently until the next reassessment.