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Property Tax Calculator

Translate a mill rate or percent tax rate into an annual property tax bill. Factor in assessment ratio, homestead and senior exemptions, and project the tax forward as property values appreciate.

Property value

$
%

Percent of market value used for assessment. Many states use 80–100%.

Exemptions

$
$

Senior, veteran, disability, or agricultural exemptions combined.

Tax rate

mills

One mill = $1 per $1,000 of assessed value.

Project forward

%
years

Annual property tax

$6,221

$518/mo in escrow

Effective rate

1.46%

of market value

Taxable value

$336,250

after $25,000 exemptions

Projected tax in 5 yrs

$7,285

at 3.0% appreciation

How the bill is built

Effective rate is in the typical U.S. range of 0.8–1.5% of market value.

Market value$425,000
× Assessment ratio (85%)$361,250
− Exemptions-$25,000
Taxable value$336,250
× 18.5 mills$6,221
Annual property tax$6,221

States publish millage rates that combine school, county, municipal, and special-district levies. Check your assessor's site for the full breakdown and the correct assessment ratio — some states apply a fractional ratio only to residential, not commercial, property.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

Calculation notes and example

Property tax formula used here

Property tax is generally taxable assessed value × tax rate. Assessed value may equal market value or a percentage of it, depending on the jurisdiction. Exemptions reduce the taxable amount. Some areas express the rate as a percentage, while others use mills, where one mill equals $1 of tax per $1,000 of taxable value. The calculator converts those inputs into annual and monthly estimates.

Worked example

A $500,000 home with an 80% assessment ratio has $400,000 assessed value. Subtract a $25,000 homestead exemption and taxable value is $375,000. At a 1.2% effective tax rate, annual property tax is $4,500, or $375 per month. For a purchase budget, combine this with the mortgage calculator and closing cost calculator because escrow deposits can increase cash needed at closing.

Edge cases and practical tips

  • Purchase price can trigger reassessment in some places, so last year’s tax bill may be too low.
  • Special assessments, parcel taxes, and Mello-Roos charges may not be captured by a simple rate.
  • Appeal deadlines matter; if assessed value looks wrong, check the local calendar quickly.

Useful companion tools: Mortgage Calculator, Closing Cost Calculator, Rental Property Calculator, and Property Tax Appeal Calculator.

How to interpret the property tax result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this property tax estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

  1. Enter market value — the estimated resale price, not the assessed value.
  2. Set the assessment ratio (the percent of market value your jurisdiction actually taxes).
  3. Add homestead and other exemptions that reduce taxable value.
  4. Pick mill rate or percent rate — either works as long as it matches what your assessor publishes.
  5. Set appreciation and a year count to project the future tax bill for budgeting or escrow planning.

Frequently Asked Questions

What is a mill rate?

A mill rate is tax per $1,000 of assessed value. A 20-mill rate on $200,000 of assessed value produces $4,000 of tax. To convert to a percent rate, divide the mill rate by 10 — a 20-mill rate equals 2.0%.

What is assessment ratio?

The assessment ratio is the fraction of market value that the taxing jurisdiction uses to compute assessed value. Some states use 100%, meaning the assessment equals market value. Others use 40%, 60%, or another fraction. The mill rate is then applied only to the assessed portion.

How does a homestead exemption lower my tax?

A homestead exemption subtracts a fixed dollar amount from assessed value before the mill rate is applied. A $25,000 homestead on a property assessed at $200,000 at a 20-mill rate saves $500 per year in tax.

Why is my actual tax bill different from this estimate?

Actual bills often combine multiple overlapping levies — school district, county, municipality, and special districts. Some jurisdictions layer a separate mill rate for bond measures or fire districts. Use your assessor's annual notice for the authoritative breakdown.

Can I use this for a rental or investment property?

Yes. Leave homestead and other exemptions at zero since most investment properties don't qualify. Plug the result into the rental cash flow calculator as part of monthly operating expenses.

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