Property Tax Calculator
Estimate your annual property tax using your state's average effective rate.
Your home and location
Estimated annual property tax
$2,800
Using the state average rate: 0.7%
Monthly property tax
$233.33
State average rate
0.7%
Estimate calculated from the numbers you entered. This is not financial, tax, or legal advice — always consult a qualified professional before making significant financial decisions.
How the Property Tax Calculator works
This tool applies your state's average effective property tax rate — or a local rate you already know — to your home's value, to estimate your annual and monthly property tax bill, and lets you carry that estimate directly into the Mortgage Calculator's PITI payment.
The formula
Annual property tax = Home value × Effective rateWorked example
A $400,000 home in New Jersey, at an effective rate of 2.11%, owes $8,440 a year — about $703 a month, usually collected through an escrow account alongside the mortgage payment. The identical home in Hawaii, at 0.27%, owes $1,080 a year, or $90 a month.
That $613 monthly gap is roughly what $100,000 of additional mortgage would cost at current rates — which is the practical point. Two houses with the same sticker price in different states are not the same purchase, and property tax is the line most often left out of affordability math. It also never gets paid off: the mortgage ends after 30 years, the tax bill does not, and it rises with assessments over time.
Common mistakes
- Treating the state average as your exact bill — always check your county assessor's site for your actual local rate.
- Forgetting property taxes almost always rise with reassessments, even without a rate change.
- Missing available exemptions (homestead, senior, veteran) that can meaningfully lower the taxable value.
Frequently asked questions
Why is my actual property tax bill different from this estimate?
This calculator uses each state's AVERAGE effective rate — the typical county and municipality within a state can differ from that average by more than a full percentage point. Property taxes are set locally (by county, city, and school district), and assessed value often lags market value, so your actual bill depends on your specific county assessor and any local levies or exemptions (like a homestead exemption) that apply to you.
Why do property tax rates vary so much between states?
States fund different shares of schools, infrastructure, and local services through property taxes versus income or sales taxes. States with no income tax (like Texas or New Hampshire) often lean more heavily on property taxes to fund local government, which is part of why they rank among the higher effective rates despite having no wage income tax.
How does property tax affect my mortgage payment?
If your mortgage has an escrow account, your lender collects roughly 1/12 of your estimated annual property tax with every monthly payment and pays the tax bill on your behalf — this is the 'T' in PITI (Principal, Interest, Taxes, Insurance). Use the link below to carry this estimate directly into the site's Mortgage Calculator.
Can my property tax bill go up even if I don't move?
Yes — most jurisdictions reassess property values periodically (annually in some places, every few years in others), and a rising home value or a new local levy can increase your bill even with no rate change. Some states cap how fast assessed value can rise for existing homeowners (e.g. California's Proposition 13); check your state and county's specific rules.
What actually moves this number
Specific levers, and roughly what each one is worth. Not “save more” — the things that change the figure above by an amount you can measure.
File the homestead exemption — it is free and often missed
Most states reduce the assessed value of a primary residence on application, and many buyers never file. Additional reductions commonly exist for people over 65, veterans, and those with disabilities. Check the county assessor's site once.
Appeal the assessment if comparable sales disagree
Assessments are estimates and appeal windows are short, often weeks after the notice. Three recent comparable sales below your assessed value is the standard evidence, and the process is usually free.
Expect a bill increase after you buy
Many jurisdictions reassess on sale, so the prior owner's tax — which is what listings often quote — can understate yours substantially. Ask the assessor what the reassessed figure would be at your purchase price.
Audit the escrow analysis each year
Servicers estimate, then true up. A shortage spreads across next year's payments and a surplus is refunded, and errors in either direction are common enough to be worth the ten-minute read.
What this calculator does not cover
Every calculator simplifies, and the useful thing is knowing exactly where. These are the specific gaps between this estimate and your real situation:
- The state rate is an average. Property tax is set by county, city, and school district, and rates within a single state can differ by more than a full percentage point.
- Assessed value is not market value in most jurisdictions, and several states cap how fast an assessment can rise for existing owners.
- Exemptions are not modeled. Most states offer a homestead exemption, and many offer additional reductions for people over 65, veterans, or those with disabilities.
- Deducting property tax federally is limited by the SALT cap and only available if you itemize, which most filers no longer do.
For anything that turns on an exact figure, use the primary sources below or a qualified professional. How these limits are decided and disclosed is described in the editorial standards.