Property Tax Calculator

Property tax is the primary funding source for local services in the United States. Unlike federal income tax, it's assessed and collected locally — meaning two homes with identical market value can pay wildly different amounts depending on the city, school district, and special assessments.

How property tax is calculated

Your local assessor determines an assessed value (often equal to or a fraction of market value). The local tax authority sets a rate (often expressed in mills — dollars per $1,000 of assessed value). Annual tax = assessed value × rate. Many areas allow homestead exemptions that reduce the taxable portion for primary residences.

States with the highest and lowest property taxes

New Jersey, Illinois, and Connecticut have the highest effective rates, often over 2%. Hawaii, Alabama, and Colorado are among the lowest, under 0.6%. States without income tax (Texas, Florida) tend to compensate with higher property taxes.

Escrow and your mortgage

If you have a mortgage, your lender typically collects 1/12 of estimated annual property tax with each payment, holds it in escrow, and pays the county on your behalf. When tax rates rise, your monthly mortgage payment rises with them.

Appealing your assessment

If your home's assessed value seems too high relative to comparable sales, file an appeal with your local assessor. Successful appeals can lower your bill for years. Deadlines vary by jurisdiction — usually 30–60 days after assessment notices are mailed.