Property Tax Calculator
Estimate your annual and monthly property taxes using assessed value, mill rate, and exemptions. See how much you save with a homestead exemption.
How Property Taxes Work
Property taxes are annual levies imposed by local governments — counties, municipalities, and school districts — on real estate. For most homeowners, property taxes represent the largest recurring cost of ownership after the mortgage itself. For real estate investors, accurately forecasting property taxes is essential to calculating net operating income (NOI), cap rates, and cash-on-cash returns.
Property taxes fund public services including schools, roads, fire departments, and local government operations. The amount you owe each year is calculated from three key variables: your property's assessed value, the assessment ratio used by your jurisdiction, and the local mill rate (tax rate).
Your county assessor determines the assessed value of your property — often a percentage of its market value (the assessment ratio). Most states assess at 70–100% of market value, though some states like California and Louisiana use lower ratios. Assessed values are updated annually or every few years during reassessment cycles.
The mill rate is the tax rate applied to your assessed value. One mill equals $1 of tax per $1,000 of assessed value. A rate of 20 mills on a $300,000 assessed value yields $6,000 in annual taxes. Mill rates are set by local taxing authorities and typically range from 5 mills (low-tax areas) to 35+ mills (high-tax cities like Detroit or Newark).
Most states offer exemptions that reduce your taxable value. The homestead exemption — available for your primary residence — is the most common, ranging from $5,000 in some states to $50,000+ in Florida and Texas. Additional exemptions exist for seniors, veterans, disabled persons, agricultural use, and nonprofit properties.
Annual Tax = (Market Value × Assessment Ratio − Exemptions) × (Mill Rate ÷ 1,000)
Property Tax Estimator
Annual & monthly tax with exemption analysis
Property Tax Estimate
Tax Calculation Breakdown
Property Tax Rates by State (2026 Reference)
Effective property tax rates (annual tax ÷ market value) vary from under 0.3% in Hawaii to over 2.2% in New Jersey. Use these as benchmarks when evaluating investment markets.
*Effective rates are approximate statewide averages for 2025. Actual rates vary by county and municipality. Sources: Tax Foundation, Lincoln Institute of Land Policy.
5 Ways to Reduce Your Property Tax Bill
Homestead, senior, veteran, disability — exemptions are often unclaimed because owners don't know they exist. Contact your county assessor's office to review your eligibility. In Florida, a homestead exemption alone can save $750+ per year on a $300,000 home.
Roughly 60% of properties are over-assessed, according to the IAAO. If comparable homes in your neighborhood sold for less than your assessed value, you have grounds for an appeal. Most counties have a formal appeal window (often 30–90 days post-assessment notice). Success rates for well-documented appeals run 20–40%.
Permitted improvements — additions, garages, decks — are flagged during reassessment and increase assessed value. If a major reassessment is upcoming, defer non-essential improvements until after.
Assessor records commonly contain errors — wrong square footage, extra bathrooms, incorrect lot size. Request your property record card and verify every field. A 150 sqft error on a $200/sqft property inflates assessed value by $30,000.
When analyzing investment properties, always verify actual tax bills — not estimated figures. Markets like New Jersey and Illinois carry effective tax rates 2–3× the national average, dramatically reducing cash flow. Use our Cash Flow Calculator and Cap Rate Calculator to model the full impact.