Calculate Your Property Tax
Property tax is one of the largest ongoing costs of homeownership - often $2,000-$10,000+ per year depending on where you live. This calculator estimates your annual and monthly property tax based on home value and your local assessment rate.
How Property Tax Is Calculated
Assessed value is usually 80-100% of market value. Mill rate is the tax per $1,000 of assessed value.
Average Property Tax Rates by State (2026)
| State | Effective Rate | Avg Annual Tax on $400k Home |
|---|---|---|
| New Jersey | 2.23% | $8,920 |
| Illinois | 2.07% | $8,280 |
| Texas | 1.68% | $6,720 |
| New York | 1.40% | $5,600 |
| California | 0.75% | $3,000 |
| Florida | 0.86% | $3,440 |
| Colorado | 0.51% | $2,040 |
| Hawaii | 0.29% | $1,160 |
Worked Example: $400,000 Home in Texas
- Market value: $400,000
- Assessed value (100%): $400,000
- Mill rate: 16.8
- Tax = $400,000 ร 16.8 รท 1,000 = $6,720/year
- Monthly escrow: $560
How to Lower Your Property Tax
- File a homestead exemption if your state offers one
- Appeal your assessment if home values have dropped
- Check for senior citizen, veteran, or disability exemptions
- Look for state-specific caps (like California Prop 13)
- Get a professional appraisal to support your appeal
Frequently Asked Questions
How often is property tax paid?
Usually annually or semi-annually, often through an escrow account with your mortgage.
Can I appeal my property tax?
Yes - most counties allow appeals with a formal process. Success rate is 30-50% with good evidence.
Do property taxes go up if I improve my home?
Usually yes - improvements increase assessed value, which increases tax.
What is a homestead exemption?
A state-specific reduction in taxable value for owner-occupied homes. Saves $500-$2,000/year.
Are property taxes tax-deductible?
Yes, up to $10,000 combined with state/local income tax (SALT cap).
Do I pay property tax on a new build?
Yes - once the county assesses the completed structure, which may be 1-2 years after purchase.