Property Tax Calculator: Estimate Your Annual Tax Bill
Property tax is one of the largest ongoing costs of owning a home. It is calculated as a percentage of your home's assessed value, with the rate varying significantly by state and county. This calculator estimates your annual and monthly property tax based on your home value and local tax rate.
How Property Tax Is Calculated
Tax rates are usually expressed as a percentage or as "mills" (dollars per $1,000 of value). One mill equals 0.1% — so a 20-mill rate is a 2% effective tax rate.
Example Calculation
$350,000 home with a 1.25% tax rate:
- Annual tax: $350,000 x 1.25% = $4,375
- Monthly tax: $4,375 / 12 = about $365
State Comparison
- Lowest rates — Hawaii (~0.28%), Alabama (~0.41%), Colorado (~0.55%)
- Highest rates — New Jersey (~2.23%), Illinois (~2.07%), New Hampshire (~1.93%)
FAQ
Is property tax based on market value?
It is based on an assessed value, which is usually close to but typically a bit lower than market value.
Can I deduct property tax?
Yes, on your federal return, but the state and local tax (SALT) deduction is capped at $10,000 for most filers.
Does property tax go up over time?
Yes, as home values and local budgets rise. Some areas cap annual increases, so check your local rules.
Disclaimer: This is an estimate. Actual property tax depends on your local assessor and millage rates.