How is property tax calculated?

Property tax = assessed value × millage rate. Assessed value is your local county assessor's estimate (often a fraction of market value); millage is the per-thousand-dollar tax rate (e.g., 20 mills = 2% effective rate). The product is your annual bill, typically paid in 2 or 4 installments (or escrowed monthly with your mortgage payment).

What's the difference between 'effective tax rate' and 'millage rate'?

Millage rate is the nominal rate applied to assessed value (often expressed as 'mills' = dollars per $1,000). Effective tax rate is the actual bill divided by market value (which accounts for assessment-ratio quirks). For comparing across states, effective rate is the right number — it normalizes for different assessment practices.

Why does property tax vary so much between states?

Three drivers. (1) State and local income tax — high-income-tax states (NY, CA, OR) can afford lower property tax; no-income-tax states (TX, NH, WY) lean on property tax. (2) Local services — heavy-school-funding states (NJ, IL, CT) collect more. (3) Statewide caps — California's Prop 13 keeps effective rates low; Hawaii's tourism revenue covers most of state budget.

How accurate is the state median rate vs. my actual bill?

State medians from US Census 2022 are within ±25% for ~70% of US homeowners. The biggest variance source is county — within California, Marin County effective rate is ~0.6% while Kern is ~1.1%. If you know your specific county's published millage, use the override field; otherwise the state median is a reasonable planning estimate.

What is the assessment ratio and why does it matter?

The assessment ratio is the percentage of market value your county uses for taxation. Most states assess at 100% of market (or close to it). But some assess at fractions: Mississippi 10–15% (with higher millage to compensate), Georgia 40%, Massachusetts 100% but with separate homestead exemptions. Always check your local assessor's office — using market value when your county uses 50% will overstate your bill 2×.

Does property tax actually scale linearly with home value?

Mostly yes, but with caveats. (1) Many states cap annual assessed-value increases (CA Prop 13 = 2%/year max), so long-time owners pay below market rate. (2) Homestead exemptions (FL, TX, GA) reduce the taxable assessed value by a flat dollar amount. (3) Senior, veteran, and disability exemptions further reduce the base. The calculator's straight-line estimate is the most-common case but won't capture these.

What is monthly escrow and how does it relate to property tax?

Most mortgaged homeowners pay 1/12 of annual property tax into a lender-managed escrow account each month, on top of P&I and homeowner's insurance. The lender pays the county on your behalf when the bill is due. The 'monthly escrow' row in the result is exactly this 1/12 figure — what you actually feel in your mortgage payment.

Is property tax federally deductible?

Yes, up to the SALT cap. The Tax Cuts and Jobs Act of 2017 capped state + local tax (SALT) deductions at $10,000 total — combining property tax, state income tax, and state sales tax. If your property tax alone is $12K, only $10K is deductible (and only if you itemize). Most homeowners post-TCJA take the standard deduction and get no SALT benefit.

Why is my actual bill different from this estimate?

Three common reasons. (1) Local school district + city + county overlays add to the state median — Texas's 1.75% state median can hit 2.5%+ in some Dallas suburbs. (2) Special assessments — sewer, sidewalk, water-district bonds — can add $200–1500/year. (3) The Census median is a 2-year-old snapshot; rates do drift. Always pull your most recent county tax statement for the binding number.

Can I appeal my property tax assessment?

Yes — every US jurisdiction has an appeal process, usually with a 30–60 day window after assessment notice mailing. Common winning arguments: (1) Recent comparable sales lower than your assessment; (2) Square-footage or condition errors in the county record; (3) Functional obsolescence (e.g., busy-road frontage). Appeals win in 30–50% of cases when comp data supports them. Hiring a local appraiser ($300–500) for the appeal often pays for itself.

How much does property tax matter when comparing places to buy?

Materially. On a $400K home: New Jersey costs $8,840/year, Hawaii costs $1,080/year — an $7,760 annual gap. Over 30 years that's $233K, more than 50% of the home's price. When evaluating where to relocate, property tax should weigh as heavily as income tax and home price itself.

Do property taxes go up faster than inflation?

On average yes — long-run US property tax bills have grown roughly 2× general inflation, driven by school-spending growth and rising local pension obligations. State-level caps (Prop 13 in CA, Prop 2½ in MA) slow this but don't stop it. Plan for property tax to consume an incrementally larger share of housing cost over time, especially in school-heavy districts.

Tax & DeductionsFree · No signup · 60.5K/month · $4.50 CPC

Property Tax Calculator — Annual Bill + Monthly Escrow by State (2026)

Drop home value + state — get your effective property-tax rate (US Census 2022 medians), annual bill, monthly escrow, and how it compares to the national and state averages. Optional county-rate override for hyperlocal accuracy.

Instant result
Private — nothing saved
Works on any device
AI insight included

Reviewed by CalcBold Editorial · Sources: US Census ACS 2022 (Table B25103) + Tax Foundation 2025 Facts & FiguresLast verified May 15, 2026Methodology

Home value

Use today's market value. Many counties use a percentage of market as the 'assessed value' — see the assessment-ratio field below.

State

Effective property tax rate varies 8× across US states. NJ (2.21%), IL (2.05%), CT (2.00%) lead; HI (0.27%), AL (0.40%) lag.

Assessment ratio

Many counties assess at a fraction of market value (e.g., 50% in some MA + GA counties). Leave at 100% if your jurisdiction assesses at full market.

County rate override (%) — optional

Override the state median if you know your specific county's published millage rate. Leave at 0 to use the state Census median.

Embed builderDrop the Property Tax on your site →Free widget · 3 sizes · custom theme · auto-resizes · no signupGet embed code

Frequently Asked Questions

The most common questions we get about this calculator — each answer is kept under 60 words so you can scan.

How is property tax calculated?
Property tax = assessed value × millage rate. Assessed value is your local county assessor's estimate (often a fraction of market value); millage is the per-thousand-dollar tax rate (e.g., 20 mills = 2% effective rate). The product is your annual bill, typically paid in 2 or 4 installments (or escrowed monthly with your mortgage payment).
What's the difference between 'effective tax rate' and 'millage rate'?
Millage rate is the nominal rate applied to assessed value (often expressed as 'mills' = dollars per $1,000). Effective tax rate is the actual bill divided by market value (which accounts for assessment-ratio quirks). For comparing across states, effective rate is the right number — it normalizes for different assessment practices.
Why does property tax vary so much between states?
Three drivers. (1) State and local income tax — high-income-tax states (NY, CA, OR) can afford lower property tax; no-income-tax states (TX, NH, WY) lean on property tax. (2) Local services — heavy-school-funding states (NJ, IL, CT) collect more. (3) Statewide caps — California's Prop 13 keeps effective rates low; Hawaii's tourism revenue covers most of state budget.
How accurate is the state median rate vs. my actual bill?
State medians from US Census 2022 are within ±25% for ~70% of US homeowners. The biggest variance source is county — within California, Marin County effective rate is ~0.6% while Kern is ~1.1%. If you know your specific county's published millage, use the override field; otherwise the state median is a reasonable planning estimate.
What is the assessment ratio and why does it matter?
The assessment ratio is the percentage of market value your county uses for taxation. Most states assess at 100% of market (or close to it). But some assess at fractions: Mississippi 10–15% (with higher millage to compensate), Georgia 40%, Massachusetts 100% but with separate homestead exemptions. Always check your local assessor's office — using market value when your county uses 50% will overstate your bill 2×.
Does property tax actually scale linearly with home value?
Mostly yes, but with caveats. (1) Many states cap annual assessed-value increases (CA Prop 13 = 2%/year max), so long-time owners pay below market rate. (2) Homestead exemptions (FL, TX, GA) reduce the taxable assessed value by a flat dollar amount. (3) Senior, veteran, and disability exemptions further reduce the base. The calculator's straight-line estimate is the most-common case but won't capture these.
What is monthly escrow and how does it relate to property tax?
Most mortgaged homeowners pay 1/12 of annual property tax into a lender-managed escrow account each month, on top of P&I and homeowner's insurance. The lender pays the county on your behalf when the bill is due. The 'monthly escrow' row in the result is exactly this 1/12 figure — what you actually feel in your mortgage payment.
Is property tax federally deductible?
Yes, up to the SALT cap. The Tax Cuts and Jobs Act of 2017 capped state + local tax (SALT) deductions at $10,000 total — combining property tax, state income tax, and state sales tax. If your property tax alone is $12K, only $10K is deductible (and only if you itemize). Most homeowners post-TCJA take the standard deduction and get no SALT benefit.
Why is my actual bill different from this estimate?
Three common reasons. (1) Local school district + city + county overlays add to the state median — Texas's 1.75% state median can hit 2.5%+ in some Dallas suburbs. (2) Special assessments — sewer, sidewalk, water-district bonds — can add $200–1500/year. (3) The Census median is a 2-year-old snapshot; rates do drift. Always pull your most recent county tax statement for the binding number.
Can I appeal my property tax assessment?
Yes — every US jurisdiction has an appeal process, usually with a 30–60 day window after assessment notice mailing. Common winning arguments: (1) Recent comparable sales lower than your assessment; (2) Square-footage or condition errors in the county record; (3) Functional obsolescence (e.g., busy-road frontage). Appeals win in 30–50% of cases when comp data supports them. Hiring a local appraiser ($300–500) for the appeal often pays for itself.
How much does property tax matter when comparing places to buy?
Materially. On a $400K home: New Jersey costs $8,840/year, Hawaii costs $1,080/year — an $7,760 annual gap. Over 30 years that's $233K, more than 50% of the home's price. When evaluating where to relocate, property tax should weigh as heavily as income tax and home price itself.
Do property taxes go up faster than inflation?
On average yes — long-run US property tax bills have grown roughly 2× general inflation, driven by school-spending growth and rising local pension obligations. State-level caps (Prop 13 in CA, Prop 2½ in MA) slow this but don't stop it. Plan for property tax to consume an incrementally larger share of housing cost over time, especially in school-heavy districts.

Property Tax Calculator

You might also need

Frequently Asked Questions