Property Tax Calculator

Q: How is property tax calculated?

Assessed value × local tax rate. Some areas assess at full market value, others at a fraction of it, and rates are often quoted in mills — one mill is $1 of tax per $1,000 of assessed value. A $300,000 assessment at 20 mills is $6,000 per year.

Q: What is a millage rate?

A millage (mill) rate expresses tax per $1,000 of assessed value. 15 mills = 1.5% = $15 per $1,000. To convert mills to a percentage, divide by 10.

Q: Can I lower my property taxes?

Often, yes: apply for exemptions you qualify for (homestead, senior, veteran, disability), and appeal your assessment if comparable homes are assessed lower — appeals succeed frequently enough to be worth checking. Deadlines are strict, so check your county assessor's calendar.

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.

Estimated annual property tax

—

Monthly (escrow) amount

—

Taxable value

—

Effective rate

—

The property tax formula

Annual tax = (Assessed value − Exemptions) × Tax rate
Mills → percent: divide mills by 10 (20 mills = 2.0%)

Worked example

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.

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.

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: July 2026.