Property Tax Calculator

1 The Core Tax Formula

The calculator uses a simple percentage formula to find your annual tax bill:

• Annual Tax = Property Value * (Effective Tax Rate / 100)
• Monthly Tax = Annual Tax / 12

2 Finding Your Tax Rate

The "Effective Tax Rate" is determined in one of two ways:

• By State (Estimate):

  If you select a US state from the dropdown, the calculator uses a built-in average effective tax rate for that state (e.g., "NJ" = 2.49%). This is a good estimate for budgeting but may not be exact for your specific city or county.

• By Manual Rate (Precise):

  If you enter a number in the "Manual Tax Rate" field, that number will always be used, overriding the state selection. This allows you to use the precise rate from your local assessor's office.

3 A Note on Mill Rates

Some municipalities use a "mill rate" (or "millage rate") instead of a percentage. A mill is 1/1000th of a dollar, or $1 in tax for every $1,000 of assessed value.

• Conversion: To use a mill rate in this calculator, simply divide it by 10.

  Example: A mill rate of 25 mills = 2.5%. You would enter 2.5 into the "Manual Tax Rate" field.

What is Property Tax?

Property tax is a tax paid on property owned by an individual or other legal entity, such as a corporation. It is a primary source of revenue for local governments, funding essential public services that benefit the community.

• Public Services: Funds schools, police and fire departments, libraries, and road maintenance.
• Based on Value: The amount you pay is based on the assessed value of your property, which is determined by your local government's tax assessor.

How to Use This Property Tax Calculator

This tool is designed to give you a reliable estimate, whether you know your exact local rate or not.

• 1
  Enter Your Property's Value: Start with your home's market value. If you know its assessed value, using that will give a more accurate result.
• 2
  Choose Your Rate Method: For a quick estimate, select your US state from the dropdown. For a precise calculation, enter your specific local tax rate (often called a "mill rate") into the manual field. The manual entry will always override the state selection.
• 3
  Analyze Your Estimate: The calculator instantly shows your estimated annual and monthly tax payments. Use the monthly figure to help budget for your total housing costs.

Key Terms to Understand

• Assessed Value vs. Market Value: Market value is what your home could sell for. Assessed value is a percentage of that value used by tax authorities. For example, a $400,000 home might have an assessed value of $320,000 (80%). Taxes are paid on the assessed value.
• Mill Rate: A "mill" is one-thousandth of a dollar. A mill rate is the tax per $1,000 of assessed value. A rate of 25 mills means you pay $25 for every $1,000 of your home's assessed value. This is equivalent to a 2.5% tax rate.
• Effective Tax Rate: This is the percentage of your home's market value that you pay in property taxes each year. Our calculator uses this rate for its state-based estimates, making it easy to compare locations.

Average Property Tax Rates by State (2025 Update)

Property tax rates can vary significantly across the United States. Below is a snapshot of the average effective tax rates for a selection of states to give you an idea of this range. For the most accurate calculation, always find your specific local rate.