Property Tax Calculator

Home / Assessed Value

$

Mill Rate (mills)

mills

U.S. State Average Rates

The Property Tax Calculator estimates the annual property tax you will pay on a home based on its assessed value and your local mill rate (also called millage rate). Property taxes fund schools, municipalities, counties, and special districts — and they vary dramatically by location, from under 0.3% in Hawaii to over 2.4% in parts of New Jersey.

Unlike income tax, property tax is not deductible from your federal return for most taxpayers under the current $10,000 SALT cap. But it remains one of the largest recurring costs of homeownership, so estimating it accurately is essential when budgeting for a home purchase.

How This Calculator Works

Property tax is calculated as:

Annual Tax = Assessed Value × Mill Rate ÷ 1000

Or equivalently:

Annual Tax = Assessed Value × (Effective Rate %)

Key terms:

Assessed value: the value assigned by the county assessor — often a percentage of market value (called the assessment ratio). In some states it equals market value; in others it is a fraction.
Mill rate: tax per $1,000 of assessed value. A 20-mill rate = 2.0% effective rate.
Effective rate: the actual percentage of home value paid in tax annually. The U.S. average is about 1.1%.

When to Use This Calculator

Use the property tax calculator when:

Budgeting the total monthly cost of homeownership (with mortgage, insurance, and tax)
Comparing property tax burden across cities or states before relocating
Estimating tax liability on a newly purchased home
Challenging an assessment — understanding how the math works helps you argue your case
Planning for annual or semi-annual tax bills that may not be escrowed

Example Calculation

A home in Texas has a market value of $350,000. Texas assesses at 100% of market value, and the combined mill rate (school + city + county) is 18 mills (1.8% effective).

Assessed value: $350,000
Annual property tax: $350,000 × 0.018 = $6,300
Monthly (for escrow): $6,300 ÷ 12 = $525

The same home in Hawaii (0.31% effective rate) would cost only $1,085/year — a $5,215 annual difference on the same property value.

FAQ

Frequently Asked Questions

What is a mill rate?

A mill is $1 of tax per $1,000 of assessed value. A 20-mill rate means $20 of tax per $1,000 — equivalent to a 2.0% effective rate. Mill rates are set by local taxing authorities (school boards, city councils, county commissions) based on their annual budget needs divided by the total assessed value of taxable property in their jurisdiction.

Why is my assessed value different from my market value?

Some states assess at a fraction of market value (e.g., 10% in Colorado residential, 35% in Indiana, 50% in South Carolina). Others cap annual assessment increases (California Proposition 13 limits increases to 2% per year until sale). This can create large gaps between assessed and market values over time, especially in rapidly appreciating markets.

Can I appeal my property tax assessment?

Yes. Most jurisdictions allow appeals within a specific window (often 30–60 days) after the assessment notice is mailed. You will need comparable sales data or evidence of condition issues. Successful appeals can reduce your tax bill permanently until the next reassessment. Many homeowners hire property tax consultants who work on contingency.

Are property taxes deductible on federal taxes?

Yes, but with limits. The SALT deduction caps total state and local taxes (income + property + sales) at $10,000 per return ($5,000 married filing separately). For 2024, this cap remains — meaning high-property-tax states like New Jersey and California see limited federal benefit, especially for higher-value homes.

What is a homestead exemption?

Many states offer a homestead exemption that reduces the assessed value of a primary residence by a fixed amount (e.g., $25,000–$75,000), lowering the tax bill. Some states also freeze assessments for seniors, disabled homeowners, or veterans. Florida, Texas, and Georgia have generous homestead programs.

How often are properties reassessed?

It varies by state. Some reassess annually, others every 2–5 years, and some only on sale. California only reassesses on ownership change, which creates large disparities between long-time owners and recent buyers of identical homes. Some states have periodic market-wide reassessments that can cause sudden bill increases.

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Important Disclaimer:

This inflation calculator is provided for informational and educational purposes only and does not constitute financial, tax, legal or investment advice. Results are estimates based on the inputs you provide and standard formulas; actual figures may vary due to rounding, jurisdiction-specific rules, fees, or changing market conditions. Always consult a licensed financial advisor, tax professional, or legal counsel before making decisions based on these calculations. See our full Disclaimer.

R

Rachel Hammond

CFP® — Certified Financial Planner

Rachel is a Certified Financial Planner with over 14 years of experience guiding individuals and families through tax planning, retirement strategy and investment management. She holds a degree in Economics from the University of Michigan and has been quoted in Forbes, CNBC and The Wall Street Journal.

CFP® Certified 14+ years experience Quoted in Forbes & CNBC

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