Property Tax Calculator: Annual Tax From Assessed Value
Work out the annual property tax on a home from its assessed value and the local property tax rate — the single biggest recurring cost of homeownership after the mortgage.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Annual property tax | Assessed value net of tax |
|---|---|---|
| 1.5% of $400k | 6,000 | 394,000 |
| 0.9% of $250k | 2,250 | 247,750 |
| 2.4% of $600k | 14,400 | 585,600 |
| 3.1% of $850k | 26,350 | 823,650 |
How This Calculator Works
Enter the assessed value and the effective property tax rate. The calculator multiplies the two to give the annual tax bill, with the value net of tax shown alongside. For a true effective rate, fold any homestead exemptions, caps, or special assessments into the rate you enter.
The Formula
Percentage of an Amount
Amount is the base value, Percentage is the rate applied to it
Worked Example
A home assessed at $400,000 in a jurisdiction with a 1.5% effective property tax rate owes $6,000 a year — $500 a month escrowed alongside the mortgage. Rates vary widely; the same home would owe twice that in a 3% county.
Key Insight
Property tax follows the assessment, not the purchase price. A reassessment after a sale or a market rally can lift the tax bill by hundreds a month without any change to the home — which is why homeowners watch the tax notice as closely as they watch their interest rate.
Why property tax rates vary 10× across U.S.
U.S. property tax rates 2024: Hawaii 0.27%; Alabama 0.39%; Arizona 0.53%; West Virginia 0.55%; Colorado 0.58%. High-tax states: New Jersey 2.49%; Illinois 2.27%; New Hampshire 2.13%; Connecticut 2.05%; Texas 1.84%. The 10× range reflects different state revenue structures.
Low property tax states typically have alternative revenue: oil revenue (AK, WY, ND); tourism taxes (HI, FL); state income tax substitutes; lower service levels.
High property tax states typically have: limited income tax (NH, TX); high school funding from local property; expensive infrastructure (NJ, CT); strong local government services.
Strategic implication: property tax is significant homeownership cost varying by location. $500K home: $1,350/year in Hawaii vs $12,450 in New Jersey. Annual difference: $11,100. Over 30 years: $333K. Property tax is meaningful factor in housing affordability and location decisions, often overlooked vs purchase price.
Homestead exemptions and senior protections
Most U.S. states offer homestead exemptions reducing property tax for owner-occupied primary residences. Texas: $100K homestead exemption ($110K for school taxes); Florida: $50K exemption; Georgia: $40K-$80K depending on age. Exemptions remove value from taxable base before applying rate.
Senior exemptions: additional exemptions for residents 65+ in many states. Florida: additional $50K for age 65+ with income limit. California Prop 19 (2020): inherited primary residences get reassessment protection if used as primary residence by heirs.
Assessment caps: California Proposition 13 (1978): assessed value cannot increase more than 2% annually for as long as owned. Florida Save Our Homes (1995): 3% annual cap. These caps protect long-term owners from rising property taxes — but create disparities (new buyers pay much more than long-tenured owners on identical property).
Strategy: research available exemptions when buying. Many homeowners miss exemptions they qualify for. County tax assessor websites provide eligibility information. Application typically required — some are automatic for primary residence with proper documentation; others require active filing.
U.S. effective property tax rates by state (2024)
Reference U.S. effective property tax rates (annual tax as percentage of home value).
| State | Effective rate | On $500K home |
|---|---|---|
| Hawaii | 0.27% | $1,350 |
| Alabama | 0.39% | $1,950 |
| Arizona | 0.53% | $2,650 |
| Colorado | 0.58% | $2,900 |
| California | 0.71% | $3,550 |
| South Carolina | 0.55% | $2,750 |
| Florida | 0.86% | $4,300 |
| U.S. average | 1.10% | $5,500 |
| Texas | 1.84% | $9,200 |
| Connecticut | 2.05% | $10,250 |
| New Hampshire | 2.13% | $10,650 |
| Illinois | 2.27% | $11,350 |
| New Jersey | 2.49% | $12,450 |
Property tax represents substantial homeownership cost variation. The 10× variation across states meaningfully affects housing affordability calculations. For prospective home buyers comparing states or cities, factor property tax into total monthly housing cost — often a larger annual cost than HOA fees or insurance.
Frequently Asked Questions
How is property tax calculated?
Multiply the assessed value by the local effective tax rate. A 1.5% rate on a $400,000 assessment is $6,000 a year, usually paid in installments or through an escrow account.
Is assessed value the same as market value?
Often no. Many jurisdictions assess at a fraction of market value, or freeze assessments under a homestead cap. Use the assessed value from your tax notice, not the listing price.
What is a millage rate?
It is the property tax rate expressed in tenths of a percent — one mill is $1 of tax per $1,000 of assessed value. Multiply the millage by 0.1 to convert to a percentage rate.
Are exemptions handled here?
Indirectly. Homestead, senior, or veteran exemptions reduce the effective rate. Use the effective rate from your tax notice rather than the headline jurisdictional rate.
Why did my tax bill go up?
Either the assessment rose, the rate rose, or both. A sale and a market reset often trigger a reassessment; some jurisdictions cap year-over-year increases on owner-occupied homes.
When is this calculator unreliable?
When using market value instead of assessed value (assessment often 70-100% of market depending on jurisdiction and cycle). Also unreliable when not applying homestead/senior exemptions (substantial in many states), or when using a single state rate without accounting for local variations within state (counties, cities, school districts add additional rates).
References & Authoritative Sources
- Tax Foundation — State Property Tax Rankings — Annual State Property Tax Report · consulted June 1, 2026 · Authoritative U.S. property tax rankings by state
- Lincoln Institute of Land Policy — Property Tax Research · consulted June 1, 2026 · Academic research on U.S. property taxation
- U.S. Census Bureau — Government Finance — State and Local Tax Statistics · consulted June 1, 2026 · Federal data on U.S. property tax revenue
Related Calculators
Methodology & Review
Property tax equals assessed value × millage rate / 1000 (or × tax rate). The calculator returns annual property tax. U.S. property tax 2024: average effective rate ~1.10% of home value; range 0.27% (Hawaii) to 2.49% (New Jersey). Local-level tax used to fund schools, fire, police, infrastructure. Reassessment periodic (annual to 6+ years depending on state). Assessment caps in some states (California Prop 13: 2% annual cap; Florida save our homes: 3% annual cap). RELIABILITY: Reliable for documented assessed value and rate. Less reliable when (a) assessed value differs from market value (most jurisdictions use ~70-100% of market depending on cycle); (b) tax rate varies by improvements vs land (some jurisdictions tax differently); (c) homestead and senior exemptions reduce taxable amount.
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