Property Tax Estimator

Property tax is an annual tax levied by local governments on real estate—your land and any buildings on it. Unlike federal income tax, property tax is collected locally by counties, cities, school districts, and other special taxing jurisdictions.

Property taxes are the primary funding source for most local government services, including:

• Public schools: Often the largest portion of your property tax bill
• Police and fire departments: Local emergency services
• Roads and infrastructure: Streets, bridges, and public works
• Parks and recreation: Local parks, libraries, and community centers
• Local government operations: Administrative services, courts, and more

Unlike sales tax or income tax, property tax is based on the value of what you own, not what you earn or spend. This makes it a wealth-based tax that continues regardless of your current income—an important consideration for retirees and those on fixed incomes.

This calculator helps you estimate your annual property tax bill based on your home's value and local tax rates:

Basic Mode

1. Enter your home's market value (what it would sell for)
2. Enter your local assessment ratio (often 100%, but varies by location)
3. Enter your property tax rate as a percentage or mill rate
4. Add any exemptions you qualify for (homestead, senior, etc.)
5. See your estimated annual and monthly property tax

Escrow Breakdown Mode

1. Enter separate rates for county, city, and school district taxes
2. See how each jurisdiction contributes to your total bill
3. Understand where your property tax dollars go

Location Comparison Mode

1. Enter details for two different locations
2. Compare property tax bills side-by-side
3. Useful when considering moving or buying in different areas

Property tax calculation involves several steps and values that can vary significantly by location:

Step 1: Determine Market Value

Your property's market value (or fair market value) is what it would sell for on the open market. Assessors estimate this using comparable sales, income approaches, or cost approaches.

Step 2: Apply Assessment Ratio

Many jurisdictions assess properties at a percentage of market value. For example:

Step 3: Subtract Exemptions

Exemptions reduce your taxable value:

Step 4: Apply Tax Rate

The tax rate is applied to your taxable value:

Understanding Mill Rates

A mill is $1 of tax per $1,000 of taxable value. To convert:

• 1 mill = 0.1% (or $1 per $1,000)
• 10 mills = 1%
• 15 mills = 1.5%
• To convert mills to percent: divide by 10

Many jurisdictions offer exemptions that can significantly reduce your property tax bill. Common exemptions include:

Homestead Exemption

The most common exemption, available to homeowners who live in their property as their primary residence. Amounts vary widely:

• Texas: $100,000 school district exemption plus additional local exemptions
• Florida: Up to $50,000 exemption
• California: $7,000 exemption (relatively small)
• Georgia: Varies by county, often $10,000-$50,000

Senior Citizen Exemptions

Many states offer additional exemptions for seniors (typically age 65+), sometimes with income limits. Some jurisdictions freeze assessed values for qualifying seniors.

Veteran Exemptions

Military veterans, especially disabled veterans, often qualify for property tax exemptions. Benefits can range from partial exemptions to complete property tax elimination for 100% disabled veterans.

Disability Exemptions

Homeowners with qualifying disabilities may be eligible for exemptions similar to senior exemptions.

How to Claim Exemptions

Exemptions are not automatic—you must apply with your local assessor's office. Applications typically require proof of eligibility (residency, age, disability status, etc.) and may need to be renewed periodically.

Property tax rates vary dramatically across the United States. Here are the highest and lowest effective rates:

Highest Property Tax States (2024)

Lowest Property Tax States (2024)

Note: Rates are approximate averages and vary significantly within each state by county and municipality.

Avoid these common errors when dealing with property taxes:

❌ Not Claiming Available Exemptions

Many homeowners miss out on exemptions they qualify for. Check with your local assessor about homestead, senior, veteran, and disability exemptions. These can save hundreds or thousands annually.

❌ Ignoring Assessment Errors

Assessors make mistakes. Review your property's assessed value annually and compare it to similar properties. If your assessment seems too high, you may be able to appeal.

❌ Confusing Market Value and Assessed Value

These are often different. Many jurisdictions assess below market value, and your assessed value may not change when market prices change. Don't assume your assessed value equals what you could sell for.

❌ Forgetting to Budget for Property Tax

If you don't escrow through your mortgage, property tax bills can be large and come due all at once (often semi-annually). Budget monthly to avoid payment shock.

❌ Not Factoring Property Tax When Buying

Two homes with the same purchase price can have very different property taxes based on location. Always research property tax rates and recent bills before buying.

❌ Missing Appeal Deadlines

If you want to appeal your assessment, there are strict deadlines. Note when your assessment notice arrives and when the appeal window closes—it's often only 30-90 days.

While you can't avoid property taxes, you may be able to reduce your bill:

Claim All Eligible Exemptions

File for every exemption you qualify for—homestead, senior, veteran, disability, etc. Many homeowners leave money on the table by not applying.

Review Your Assessment Annually

Check your assessment notice each year. Look for errors in property details (square footage, lot size, number of bedrooms) and compare your assessed value to similar properties.

Appeal If Overassessed

If your assessment seems too high compared to similar properties or recent sales, file an appeal. Many appeals are successful, especially when well-documented with comparable properties.

Don't Over-Improve Your Property

Major improvements (additions, pools, renovations) can trigger reassessment and increase your tax bill. Consider the tax impact before undertaking large projects.

Consider Location When Buying

Property tax rates vary significantly even within the same metropolitan area. Research tax rates in different neighborhoods, cities, or counties before buying.

Look Into Tax Deferral Programs

Some jurisdictions offer tax deferral programs for seniors or those on fixed incomes, allowing you to delay payment until you sell the property.