Estimate annual property tax from your assessed home value and local mill rate. See the monthly escrow amount for PITI budgeting and compare tax jurisdictions.
Property taxes are an unavoidable cost of homeownership and one of the largest ongoing expenses beyond the mortgage itself. Calculated by multiplying your property's assessed value by the local mill rate (tax rate per $1,000 of value), property taxes fund schools, roads, emergency services, and local government operations.
This calculator takes your assessed value and mill rate to compute the annual tax and monthly escrow amount. Since assessed value often differs from market value (many jurisdictions assess at 60–100% of market value), the tool lets you enter an assessment ratio to convert your purchase price into the assessed amount.
Property taxes vary enormously by location. New Jersey averages 2.23%, while Hawaii averages 0.27%. Even within the same metro area, crossing a county or school district line can change your tax rate by 50% or more. This tool helps you compare the tax impact of different locations before you buy.
Homebuyers, investors, and real-estate professionals all benefit from precise property tax estimate figures when evaluating properties, negotiating deals, or planning long-term investment strategies. Save this calculator and revisit it whenever market conditions or your financial situation changes.
Property taxes directly affect your PITI payment and DTI ratios, yet many buyers rely on vague estimates. This calculator gives you a precise escrow figure for budgeting and shows how different locations or assessment changes alter your long-term costs. It's especially valuable for buyers comparing homes across tax jurisdictions or evaluating the impact of a tax assessment appeal.
Assessed Value = Market Value × Assessment Ratio Taxable Value = Assessed Value − Exemptions Annual Tax = Taxable Value × Mill Rate / 1000 Monthly Escrow = Annual Tax / 12
Result: Annual tax = $5,000 | Monthly escrow = $417
A $400,000 home assessed at 100% = $400,000 taxable value. At a 12.5 mill rate ($12.50 per $1,000), the annual tax is $5,000. Monthly escrow = $417, which is added to your mortgage payment by the lender.
Property taxes are determined by two factors: the assessed value of your property and the local tax rate (mill rate). The assessed value is set by the county assessor, usually based on comparable sales and property characteristics. The mill rate is set annually by local government bodies to fund their budgets.
Tax rates vary dramatically. A $400,000 home in New Jersey (effective rate ~2.2%) pays about $8,800/year, while the same value in Hawaii (~0.3%) pays just $1,200. Even within a state, rates differ by county and school district. Always check the actual rate for your specific location.
If you believe your property is over-assessed, you can file an appeal. Gather evidence of comparable recent sales at lower prices and present it to the county board of equalization. Successful appeals can reduce your annual tax bill by hundreds or thousands of dollars, and the adjustment typically lasts until the next reassessment cycle.
A mill rate is the tax rate expressed as dollars per $1,000 of assessed property value. A mill rate of 15 means you pay $15 for every $1,000 of assessed value. Multiply your assessed value by the mill rate and divide by 1,000 to get your annual tax.
Not always. Many jurisdictions assess properties at a fraction of market value (e.g., 60%, 80%, or 100%). Some states, like California under Prop 13, base assessments on the purchase price and limit annual increases. Check your county's assessment ratio to convert accurately.
Yes, if your assessed value decreases (due to a market downturn or successful appeal) or if the local government lowers the mill rate. However, in practice, property taxes tend to increase over time as government costs rise and property values appreciate.
A homestead exemption reduces the taxable value of your primary residence. For example, a $50,000 homestead exemption on a $400,000 assessed home makes only $350,000 taxable. Most states offer some form of homestead exemption, and some have additional exemptions for seniors, veterans, or disabled homeowners.
Visit your county assessor or tax collector's website and search by property address. The tax rate shown may combine county, city, school district, and special district rates into one total mill rate. You can also ask your real estate agent or check the property's most recent tax bill.
Yes, up to a combined limit of $10,000 per year for state and local taxes (SALT) under current federal tax law. This includes property taxes and state income taxes. Homeowners in high-tax states may hit this cap quickly, reducing the effective deduction benefit.