Property Tax Calculator
Estimate your annual and monthly property tax bill from your home's assessed value and your local rate — entered as a percentage or a millage rate.
The property tax formula
Mills → percent: divide mills by 10 (20 mills = 2.0%)
Assessed value $300,000, homestead exemption $25,000, rate 1.1%:
Tax = (300,000 − 25,000) × 0.011 = $3,025/yr → about $252/mo in escrow.
Typical effective rates by region
U.S. effective property tax rates range roughly from 0.3% to 2.5% of home value per year. Hawaii, Alabama, and Colorado sit near the low end (under 0.6%); New Jersey, Illinois, and Connecticut near the high end (about 2%+). Your county assessor's website lists the exact rates and assessment ratio for your address — rates can differ street to street across district lines.
Assessments, appeals, and exemptions
Your bill depends as much on the assessed value as the rate. If your assessment jumps, compare it against recent sales of similar homes; if it looks high, appeals are routine and frequently successful. Also claim every exemption you qualify for — homestead, senior, veteran, and disability exemptions can remove tens of thousands from your taxable value. When budgeting a home purchase, feed the annual figure into our mortgage calculator to see the true monthly payment.
A $250,000 assessed home, no exemptions, in a district that taxes at 32 mills instead of a flat percentage:
32 mills ÷ 10 = 3.2%. Annual tax = 250,000 × 0.032 = $8,000/yr, or about $667/mo escrowed.
That's more than double the $3,025/yr the first example paid on a similarly sized $300,000-ish home at 1.1% — the millage conversion is exactly where two districts can look deceptively similar ("32" vs. "1.1") until you do the math.
Approximate effective property tax rates, by state
| State (or benchmark) | Approx. effective rate |
|---|---|
| Hawaii | ≈0.3% |
| Alabama | ≈0.4% |
| Colorado | ≈0.5% |
| U.S. average | ≈0.9%–1.1% |
| Texas | ≈1.6% |
| Illinois | ≈2.1% |
| New Jersey | ≈2.2% |
These are broad, approximate benchmarks — actual rates vary by county and even by taxing district within a county, so always confirm with your local assessor before budgeting a purchase around them.
Common property tax mistakes
- Confusing assessed value with market value. Some jurisdictions assess at only a fraction (often 10%-40%) of market value, so applying a rate to the wrong base can wildly over- or under-estimate the bill.
- Comparing mills and percentages without converting. As the example above shows, "32 mills" and "1.1%" look wildly different as raw numbers but are only about 3x apart once mills are converted (32 mills = 3.2%) — always convert before comparing districts.
- Assuming the bill stays flat after buying. Many jurisdictions cap annual increases for existing owners but reset the assessment to full market value upon sale — a new buyer's first full-year bill can jump sharply even with no rate change.
Frequently asked questions
How is property tax calculated?
Assessed value × local rate. Rates are often quoted in mills — $1 per $1,000 of value. $300,000 at 20 mills = $6,000/yr.
What is a millage rate?
Tax per $1,000 of assessed value. Divide mills by 10 to get a percentage: 15 mills = 1.5%.
Can I lower my property taxes?
Claim exemptions (homestead, senior, veteran) and appeal over-assessments — both routinely reduce bills. Watch your county's deadlines.
What does a millage-rate bill look like in practice?
32 mills = 3.2%. A $250,000 home at that rate owes $8,000/yr (~$667/mo) — more than double the $3,025/yr example above at 1.1%.
How much do rates vary by state?
Roughly 0.3% in Hawaii up to about 2.2% in New Jersey — a ~7x spread. The U.S. average sits near 0.9-1.1%.
Related calculators
Note: Actual property taxes depend on local assessment ratios, districts, and caps that this simple estimate can't capture. Verify with your county assessor. Not tax advice. Last reviewed: September 2026.