How is property tax calculated?

Property tax = Assessed Value × Tax Rate. The assessed value may differ from market value — some counties assess at 50–80% of market value. The tax rate (mill rate) is set by local government. This calculator uses effective rates which account for these adjustments.

Can I deduct property taxes on my federal return?

You can deduct up to $10,000 in state and local taxes (SALT), which includes property taxes, on your federal return if you itemize. The $10,000 cap applies to the combined total of property taxes and state income or sales taxes.

How can I lower my property tax bill?

Common strategies include: appealing your assessment if you believe the home is overvalued, applying for homestead exemptions (available in most states), checking for senior, veteran, or disability exemptions, and ensuring your property details are accurate in county records.

Property Tax Calculator

Estimate your annual and monthly property taxes by state. Compare rates across all 50 states and the District of Columbia.

Home Value

State

Annual Property Tax

$6,300

Texas average rate: 1.80%

Monthly Tax

$525

Effective Rate

1.80%

National Avg Tax

$3,745

vs. National Avg

+$2,555/yr

Rates are state averages from recent data. Actual taxes depend on your county and local assessment. Contact your county assessor for the exact rate.

How to Use This Property Tax Calculator

Enter your Home Value and select your State to instantly see your estimated annual and monthly property taxes. The calculator uses each state's average effective property tax rate — the actual tax paid as a percentage of home value, which accounts for assessment ratios and exemptions.

If you know your exact local rate, select Custom Rate and enter it directly. Your county assessor's website or your mortgage statement (escrow section) will have the precise figure.

State Average vs. Local Rate

State averages mask significant local variation. In Texas (state avg: 1.80%), rates range from 1.2% in some counties to 2.5%+ in others. For budgeting purposes, use the state average as a starting point, then verify with your specific county.

Property Tax Formula

Annual Property Tax = Assessed Value × Effective Tax Rate

Monthly Escrow = Annual Tax ÷ 12

Effective Rate = Annual Tax Paid ÷ Market Value × 100

Note: Assessed Value ≠ Market Value in many counties.
Some counties assess at 50–80% of market value, but the
effective rate accounts for this difference.

State Property Tax Rates — Quick Reference

Highest vs. Lowest Property Tax States

State	Rate	Annual Tax on $350K Home
New Jersey	2.49%	$8,715
Illinois	2.27%	$7,945
Texas	1.80%	$6,300
New York	1.72%	$6,020
National Avg	1.07%	$3,745
Florida	0.89%	$3,115
California	0.73%	$2,555
Arizona	0.63%	$2,205
Hawaii	0.28%	$980

Frequently Asked Questions

New Jersey (2.49%), Illinois (2.27%), Connecticut (2.14%), New Hampshire (2.09%), and Vermont (1.90%) have the highest average effective rates. On a $400,000 home, New Jersey owners pay nearly $10,000/year — over $800/month in property taxes alone.

Hawaii (0.28%), Alabama (0.41%), Colorado (0.51%), Nevada (0.60%), and South Carolina (0.57%) have the lowest rates. However, low-tax states often have higher home prices or other taxes. Hawaii's low rate applies to very high home values, so actual dollar amounts can still be significant.

Annual property tax = Assessed Value × Mill Rate. Many counties assess property at less than full market value (80% is common). The mill rate (tax rate) is expressed in dollars per $1,000 of value. This calculator uses effective rates, which represent the actual tax as a percentage of market value — simplifying the calculation.

Yes, up to $10,000 in state and local taxes (SALT deduction) including property taxes, if you itemize deductions. The $10,000 cap (enacted 2018, currently extended) combines property taxes with state income or sales taxes. High-tax state residents often hit this cap quickly.

Options include: (1) Appeal your assessment if you believe your home is overvalued — success rates are 30–40% for those who appeal. (2) Apply for homestead exemptions — most states offer $25,000–$50,000 off assessed value for primary residences. (3) Check for senior, veteran, disability, or agricultural exemptions. (4) Verify property data accuracy — errors in square footage or bedroom count increase assessments incorrectly.