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Calculator Answers

Property Tax Calculator

Blake Boege
Written by Blake Boege · Founder, Calculator Answers

A property tax calculator estimates the annual tax liability on real estate based on market value, assessment ratios, and local tax rates (percentage or mill rates). It determines the assessed value of the home and applies the designated rate to compute the annual bill and its monthly equivalent. Homeowners and prospective buyers use it to estimate recurring housing costs.

Estimate your annual and monthly property tax payments. Choose tax rate (%) or mill rate mode, apply your local assessment ratio, or select a US state to auto-fill average rates.

See also: 1099 Tax Calculator, Mortgage Calculator, and Cap Rate Calculator.

Quick Answer

Estimate your annual and monthly property tax payments. Select a US state to load average rates, or enter a custom tax rate or mill rate.

Calculation mode

$

e.g. 350,000

%

The percentage of property value subject to tax. · e.g. 100

%

Average annual percentage tax rate. · e.g. 1.2

Property Tax Estimates

Estimated Annual Property Tax

$3,500.00

Assessed value $350,000.00 (100% of value)

Estimated Home Value$350,000.00
Assessment Ratio100%
Assessed Property Value$350,000.00
Property Tax Rate1%
Annual Property Tax$3,500.00
Monthly Tax Equivalent$291.67

Property taxes are determined locally. Average rates vary from Hawaii (~0.31%) to New Jersey (~2.23%).

Step-by-Step Property Tax Calculation

[1]Calculate Assessed Property Value:
[2] Assessed Value = Home Value × Assessment Ratio
[3] Assessed Value = $350,000.00 × 100% = $350,000.00
[4]Calculate Annual Property Tax using Tax Rate:
[5] Annual Tax = Assessed Value × (Tax Rate / 100)
[6] Annual Tax = $350,000.00 × (1% / 100) = $3,500.00
[7]Calculate Monthly Property Tax equivalent:
[8] Monthly Tax = Annual Tax / 12
[9] Monthly Tax = $3,500.00 / 12 = $291.67
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Examples

$350,000 home, 100% assessment, California average (0.69%)

Annual Tax ≈ $2,415 · Monthly equivalent ≈ $201.25

$250,000 home, 80% assessment, 15 mills rate

Annual Tax ≈ $3,000 · Monthly equivalent ≈ $250.00

$500,000 home, 100% assessment, New Jersey average (2.23%)

Annual Tax ≈ $11,150 · Monthly equivalent ≈ $929.17

How it works

Property taxes are calculated using local tax rates applied to the assessed value of your home rather than its purchase price or current market value:

Assessed Value Formula

Assessed Value = Market Value × (Assessment Ratio / 100)

Annual Tax using Percent Rate

Annual Tax = Assessed Value × (Tax Rate / 100)

Annual Tax using Mill Rate

Annual Tax = Assessed Value × (Mill Rate / 1,000)

Assessed Value vs. Market Value

The market value is what a buyer is willing to pay for your home on the open market. The assessed value is the dollar amount placed on your home by public tax assessors to calculate property taxes. The assessed value is typically updated every one to three years and is often lower than the market value.

Related housing calculators

To calculate full monthly housing payments or home buying budgets, check out:

Mortgage CalculatorHome Affordability Calculator

Related Calculators

More tools from Money

1099 Tax CalculatorEstimate your 2026 federal income tax and self-employment tax as an independent contractor or freelancer.Mortgage CalculatorEstimate a monthly mortgage payment with principal, interest, taxes, insurance, PMI, and HOA dues. Works for any home loan.Cap Rate CalculatorCalculate real estate capitalization rate from NOI and property value, or back into property value from NOI and a target cap rate. Includes vacancy allowance and operating expense inputs.

Frequently asked questions

Millage and mill rate are the same thing: tax per thousand dollars of assessed value. One mill is one dollar per thousand, so a millage rate of 20 mills on a $250,000 assessment is $5,000. This page has a mill rate mode for exactly that, and the arithmetic divides by 1,000 rather than by 100 as the percentage mode does.

Property tax is computed by multiplying the assessed value of a property by the local tax rate (expressed either as a percentage or a mill rate). Assessed Value = Market Value × Assessment Ratio. Annual Property Tax = Assessed Value × Tax Rate.

A mill rate is the tax rate per $1,000 of assessed value. One mill represents $1 of tax for every $1,000 of property value (which is equivalent to 0.1%). For example, a mill rate of 15 mills equals a 1.5% tax rate.

An assessment ratio is the percentage of a property's market value that is subject to taxation. While some jurisdictions tax properties at 100% of their market value, others use a fractional assessment ratio (like 60% or 80%) to determine assessed value.

Property taxes are determined at the local level (counties, cities, school districts) to fund municipal services. Statewide averages vary significantly: Hawaii has the lowest effective rate (~0.31%), while New Jersey has one of the highest (~2.23%).

Yes. If you believe your property's assessed value is higher than its fair market value, you can file an appeal with your local county assessor or board of equalization. Providing recent comps of similar properties sold in your area is the key to a successful appeal.