Property Tax Calculator
Know the real carrying cost of a home before you buy. This free US property tax calculator converts your home value and local tax rate into your annual property tax and the monthly amount you would pay through an escrow account.
What is a property tax calculator?
A property tax calculator estimates the annual property tax you owe on a piece of real estate, given its assessed value and the local tax rate. In the United States, property tax is a recurring levy paid to the county or municipality — the money funds public schools, roads, fire and police departments, libraries and other local services. Most homeowners never pay the full bill as a lump sum; instead, their lender collects roughly one-twelfth of it each month inside an escrow account and pays the county when the bill arrives.
The core calculation is simple: annual tax = assessed value × tax rate. The rate is usually quoted as a percentage or as a mill rate (dollars per thousand of value). Because property tax is often the largest ongoing cost after the mortgage interest itself, buyers and owners use this tool to sanity-check a listing, budget a monthly housing payment, or compare neighborhoods with different levies.
How to use
- Enter the assessed value of the home, or the price you expect to pay.
- Enter your local property tax rate as a percentage (for example 1.25).
- Click Calculate Property Tax to see your annual tax and monthly amount.
- Use the monthly figure as the escrow portion of your total housing payment.
How property tax is calculated
Annual tax = assessed value × (tax rate / 100)
Monthly escrow = annual tax / 12
The taxable value is set by the local assessor, not the sale price, and the rate is set by the local budget. Together they produce the amount printed on your annual tax statement.
Example
With the defaults — a $350,000 home and a 1.25% local tax rate — click Calculate Property Tax. The annual tax comes to $4,375 and the monthly escrow amount is about $364.58. Now bump the rate to 2.0% and the annual bill climbs to $7,000 — a good reminder how much a single point of local rate changes your monthly budget.
Common use cases
- Budgeting a home purchase: fold the tax into your true monthly housing cost.
- Comparing neighborhoods: see how different county rates change the ongoing bill.
- Planning an escrow account: know what your lender will collect each month.
- Assessing a reassessment: gauge a new bill when your local value is updated.
Pro tips
- Use assessed, not market, value: the county taxes the assessed figure, which can differ from what a home sells for.
- Convert mills to percent: divide a mill rate by 10 — 12.5 mills equals 1.25%.
- Budget the monthly amount: most loans escort the tax, so add it to principal and interest to get your true payment.
- Check the SALT deduction: property tax may be deductible up to the state-and-local cap, subject to your situation.
FAQ
What is property tax?
An annual local levy on real estate based on the assessed value of your home and the local rate, funding schools, roads and emergency services.
How is property tax calculated?
Annual tax = assessed value × tax rate. At $350,000 and 1.25%, the annual tax is $4,375 and the monthly escrow is about $365.
What is a mill rate?
A mill is $1 of tax per $1,000 of value. A 12.5-mill rate equals 1.25%. Enter the decimal percent here.
Does it use market value or assessed value?
Most localities tax assessed value, which is a local estimate that may differ from market value. Use the figure from your tax bill.
Are property taxes deductible?
You may deduct state and local taxes, including property tax, up to the SALT cap on your federal return. Confirm with a tax professional.
What is a monthly escrow payment?
With an escrowed mortgage your lender collects one-twelfth of the annual tax each month and pays the county bill for you.
Why does my tax bill change every year?
Reassessments, local budgets and rate votes change over time, so your assessed value or rate can rise or fall.
How do property tax rates differ by state?
They range widely, from under 0.3% in parts of Hawaii to over 2% in parts of New Jersey. Always use your local rate for planning.
Can I appeal my assessment?
Yes, most counties let you file an appeal if your assessed value seems too high. Deadlines are strict, so act promptly.
Is this property tax calculator free?
Yes. It runs entirely in your browser and no data is uploaded anywhere.
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