US Property Tax Estimator

How Property Taxes Work

Property taxes are levied by local governments (counties, cities, school districts, and special districts) to fund public services like schools, roads, police, and fire departments. They are typically the largest source of revenue for local governments and one of the biggest ongoing costs of homeownership.

Assessed Value vs. Market Value

Your property tax is not calculated on the full market value in every state. Many states apply an assessment ratio to determine the "assessed value" — the value on which taxes are actually computed. For example, if your home is worth $300,000 and your state has a 40% assessment ratio, your assessed value is $120,000.

Assessment ratios vary significantly. States like California, Florida, and Idaho assess at 100% of market value. Others like South Carolina (4%), Colorado (6.5%), and Alabama (10%) use much lower ratios, but compensate with higher millage rates.

Homestead Exemptions

Many states offer a homestead exemption that reduces the taxable value of your primary residence. For example, Texas offers a $100,000 exemption for school district taxes, meaning a $350,000 home would only be taxed on $250,000. Florida offers up to $50,000, and Hawaii up to $100,000. These exemptions are typically only available for your primary residence — investment properties and second homes do not qualify.

Property Tax Rates by State

Effective property tax rates (as a percentage of market value) range dramatically across the country:

• Highest: Illinois (~1.83%), New Jersey (~1.77%), New Hampshire (~1.61%), Connecticut (~1.54%)
• Lowest: Hawaii (~0.27%), Alabama (~0.38%), Arizona (~0.45%), Colorado/Nevada (~0.49%)

Keep in mind that actual rates vary within each state based on your county, city, and local school district. This calculator uses statewide averages and is intended for estimation purposes. Contact your county assessor's office for exact rates and assessed values.

Property Tax and Your Mortgage

Most mortgage lenders require you to pay property taxes through an escrow account. Each month, 1/12 of your estimated annual tax bill is added to your mortgage payment. The lender holds these funds and pays your property tax bill when it's due. This is why the "monthly (escrow)" figure above is useful when budgeting for total housing costs.