Property Tax Calculator
Estimate your property taxes by state and see monthly payment breakdown.
Property Details
Most states assess at 100%
Average for CA: 0.76%
Understanding Property Tax
Property taxes fund local services like schools, roads, fire and police protection, and emergency services. Rates vary significantly by state and even by county or municipality within a state. The money stays local — it does not go to the state or federal government. If you have a mortgage, your lender typically escrows property tax: you pay 1/12 of the annual bill each month along with your mortgage payment, and the lender pays the county on your behalf when the bill comes due.
How property tax is calculated
The formula is straightforward:
Annual Property Tax = Assessed Value × Local Tax Rate
Assessed value is usually the market value of your home multiplied by an assessment ratio set by the state. Most states assess at 100%, meaning your assessed value equals your market value. A handful (like Texas, which uses market value, and Maryland, which assesses at 100%) are straightforward. Others (like California, where Prop 13 limits growth to 2% per year unless the home is sold) deviate from market value over time.
The local tax rate is expressed as a percentage of assessed value. Effective rates range from 0.32% (Hawaii) to 2.23% (New Jersey) of home value. Multiply by 12 to convert to a monthly escrowed amount.
Worked example: $400,000 home in three states
The same home can carry very different property tax bills depending on where it sits:
- Texas (effective rate ~1.68%): $6,720 per year, or $560 per month escrowed
- National median (~0.89%): $3,560 per year, or $297 per month escrowed
- Hawaii (effective rate ~0.32%): $1,280 per year, or $107 per month escrowed
The Texas bill is over 5× the Hawaii bill on the same home value. This is why property tax is one of the largest line items to compare when relocating, and why "no state income tax" states like Texas and Florida often have higher property taxes to compensate.
Factors that affect your tax
- Home Value: Higher value = higher tax (with the caveat that some states cap assessment growth)
- Assessment Ratio: Most states assess at 100%, but some are lower (e.g., 80% in some MS counties)
- Local Millage Rate: Set by your county, city, school district, and any special districts; can change yearly based on budget votes
- Exemptions: Homestead, senior, veteran, and disability exemptions can reduce your bill significantly — sometimes by 20-50%
- Reassessment Timing: If you just bought, expect a reassessment within months in most states
Common property tax exemptions to look for
Most homeowners qualify for at least one exemption, and many don't claim them. Check with your county assessor:
- Homestead exemption: Reduces the assessed value of your primary residence. Available in most states; amounts range from $5,000 to 100% of the value for qualifying homeowners (e.g., disabled veterans in some states).
- Senior exemption: Additional reduction for homeowners 65+, available in 30+ states. Often freezes the assessed value.
- Veteran / disability exemption: Substantial reductions for disabled veterans and 100% disabled homeowners. Some states (Texas) offer a complete property tax exemption for 100% disabled veterans.
- Mortgage escrow requirement: If your loan-to-value is over 80%, your lender will require an escrow account. Escrow spreads the annual bill across 12 monthly payments, but the total is the same.
Frequently Asked Questions
How is property tax calculated?
Property tax is calculated by multiplying your home's assessed value by the local tax rate. The assessed value is typically the market value multiplied by the assessment ratio, which varies by state. For example, a $400,000 home in a state with 100% assessment and a 1.5% effective rate owes $6,000 per year, or $500 per month.
Which states have the highest property taxes?
New Jersey (~2.23%), Illinois (~2.08%), and Texas (~1.68%) have the highest effective property tax rates. Hawaii (~0.32%), Alabama (~0.39%), and Colorado (~0.55%) have the lowest. The national median effective rate is about 0.89% of home value.
Are property taxes tax-deductible?
Yes, if you itemize. Property taxes are deductible on Schedule A of your federal return, subject to the $10,000 SALT cap combined with state and local income/sales taxes.
How often is property tax reassessed?
It depends on the jurisdiction. Some states reassess annually, others every 3-5 years, and California (under Prop 13) only reassesses on sale or new construction. Your tax bill can still change between reassessments if local millage rates change.