Property Tax Calculator

1. Enter the Assessed Home Value. This is not necessarily the market value of your home. Local governments assess properties at a percentage of market value, called the assessment ratio. In some counties it is 100% of market value. In others it may be 80% or even 50%. Check your property tax bill or county assessor website for the assessed value, not the market price you paid.
2. Enter the Tax Rate. Property tax rates are expressed as a percentage of assessed value or as a mill rate (mills per $1,000 of value). A 1.2% rate means $1,200 per $100,000 of assessed value. Your county assessor or tax authority publishes the current millage rate. National average is around 1.1%, but rates range from under 0.3% in Hawaii to over 2% in New Jersey and Illinois.
3. Enter Exemptions. Most states offer a homestead exemption that reduces taxable value for primary residences. Florida offers $25,000. Texas offers $40,000. Additional exemptions exist for seniors (often $10,000 to $50,000 reduction), veterans, and those with disabilities. Enter your total exemption amount to see the real tax owed.
4. Read your results. The monthly amount is what your mortgage servicer will typically collect in escrow each month for property taxes.

Property tax is straightforward once you know the two key inputs: taxable value and the mill rate. Most confusion comes from the difference between assessed value and market value, and from exemptions that reduce taxable value before the rate is applied.

Annual Tax = (Assessed Value - Exemptions) × (Tax Rate / 100)

Monthly Tax = Annual Tax / 12

Effective Rate = Annual Tax / Market Value × 100

• Assessed Value is set by your local assessor, often a percentage of market value
• Exemptions reduce taxable value before the rate is applied
• Tax Rate is the millage rate set by local taxing authorities (school district, city, county)
• Effective Rate shows what you actually pay as a percentage of market value

Worked example: Home assessed at $350,000 in a county with a 1.2% tax rate. Homeowner has a $25,000 homestead exemption.

Taxable Value = $350,000 - $25,000 = $325,000
Annual Tax    = $325,000 × 0.012 = $3,900
Monthly       = $3,900 / 12 = $325/month

If the market value of the home is $400,000 but assessed at $350,000, the effective rate relative to market value is $3,900 / $400,000 = 0.975%, lower than the stated 1.2% mill rate. This distinction matters when comparing tax burdens across counties with different assessment ratios.