Money
Property Tax Calculator
Last updated: May 31, 2026
Written by Blake Boege
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.
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
Estimated Annual Property Tax
$3,500.00
Assessed value $350,000.00 (100% of value)
Property taxes are determined locally. Average rates vary from Hawaii (~0.31%) to New Jersey (~2.23%).
Step-by-Step Property Tax Calculation
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.
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Frequently asked questions
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.
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