Property Tax Calculator
Calculate your annual property taxes based on home value, local tax rates, and available exemptions. Compare properties and analyze your escrow payments.
Property Tax Calculator
Calculate annual property taxes based on home value and tax rates
US average: ~1.1% (varies by state/county)
Percentage of market value used for taxes (100% = full value)
Exemptions
Tax Calculation Results
How Property Taxes Work
Property taxes are annual taxes paid to local governments based on the value of your property. These taxes fund essential services like schools, roads, police, and fire departments in your community.
Property Tax Formula
Annual Tax = Taxable Value × Tax RateWhere Taxable Value = (Market Value × Assessment Ratio) - Exemptions
Understanding Property Tax Terms
Market Value
The estimated price your property would sell for in the current market. This is typically determined by local assessors through property appraisals.
Assessed Value
The value used to calculate property taxes. Many states assess at less than 100% of market value (e.g., 40% in some states).
Mill Rate / Tax Rate
The tax rate expressed per $1,000 of property value (mills) or as a percentage. A 20 mill rate = 2% = $20 per $1,000 of value.
Exemptions
Deductions that reduce your taxable value. Common exemptions include homestead, senior, veteran, and disability exemptions.
Average Property Tax Rates by State
Property tax rates vary significantly by state. Here are some examples:
| State | Avg. Rate | Tax on $400K Home | Notes |
|---|---|---|---|
| New Jersey | 2.47% | $9,880 | Highest in US |
| Illinois | 2.27% | $9,080 | Second highest |
| Texas | 1.80% | $7,200 | No income tax |
| California | 0.74% | $2,960 | Prop 13 limits |
| Florida | 0.89% | $3,560 | Homestead saves 3% |
| Hawaii | 0.28% | $1,120 | Lowest in US |
Common Property Tax Exemptions
Homestead Exemption
Available in most states for primary residences. Reduces taxable value by a fixed amount or percentage.
- Texas: Up to $100,000 for school taxes
- Florida: Up to $50,000
- Georgia: Up to $2,000 off taxes
Senior Citizen Exemption
Additional exemptions for homeowners over a certain age (typically 65+).
- Often requires income limits
- May freeze assessment value
- Some states offer tax deferrals
Veteran/Military Exemption
Tax benefits for veterans, active military, and surviving spouses.
- Disabled veterans often get full exemption
- Some states exempt 100% for service members
- May extend to surviving spouses
Disability Exemption
Tax relief for homeowners with qualifying disabilities.
- Usually requires proof of disability
- May be combined with other exemptions
- Amount varies by jurisdiction
Where Your Property Taxes Go
Property taxes fund local services. Here is a typical breakdown:
K-12, community colleges
Roads, parks, admin
Police, fire, EMS
Libraries, water, transit
Tips to Reduce Property Taxes
1. Apply for All Exemptions
Many homeowners miss exemptions they qualify for. Check with your county assessor for homestead, senior, veteran, and disability exemptions.
2. Review Your Assessment
Verify your property is correctly classified and measured. Errors in square footage, lot size, or property type can inflate your taxes.
3. Appeal if Overassessed
If your assessed value exceeds market value, file an appeal. Gather comparable sales data and be prepared to present your case.
4. Avoid Improvements Before Assessment
Major improvements trigger reassessment. Time renovations strategically if your area reassesses on a cycle.
5. Check for Cap Programs
Some states limit annual assessment increases (like California Prop 13). Understand your state laws to protect from sudden increases.
6. Attend Local Budget Meetings
Tax rates are set locally. Participating in budget hearings gives you a voice in how much you will pay.
Frequently Asked Questions
How often are property taxes due?
Payment schedules vary by location. Some areas collect annually, others semi-annually or quarterly. Many homeowners pay monthly through their mortgage escrow account, which accumulates funds to pay when due.
What happens if I do not pay property taxes?
Unpaid property taxes accrue interest and penalties. After a certain period (varies by state), the government can place a lien on your property or even sell it at a tax sale to recover the debt.
Are property taxes tax deductible?
Yes, property taxes are deductible if you itemize on your federal return. However, the SALT (State and Local Tax) deduction is capped at $10,000 per year, which includes property, income, and sales taxes.
How can I find my local tax rate?
Check your annual property tax bill, contact your county tax assessor office, or search your county government website. Rates are usually listed as a percentage or mill rate.
Do property taxes ever decrease?
Yes, taxes can decrease if your assessed value drops (during market downturns) or if local tax rates are reduced. You can also appeal an overassessment to potentially lower your taxes.