Why do property tax rates vary so much by state?

Property tax funds local services — schools, police, fire, infrastructure — set by local governments, not the federal government. States and localities with less reliance on other tax types (like no state income tax) often lean more heavily on property tax.

Does this include special assessments or fees?

No — this estimates the base property tax from your assessed value and rate only. Many bills also include special district assessments, solid waste fees, or other local charges added separately.

Where do I find my actual local rate?

Your county or municipal assessor's website usually publishes current mill rates or effective rates, and your most recent property tax bill shows your exact amount paid — either is more accurate than a national or state average.

All tools

Finance

Property Tax Calculator

Estimate annual property tax from your home's value and local rate.

🔒 Runs entirely in your browser — nothing here is ever uploaded

Last reviewed 2026-08-25

About the Property Tax Calculator

Estimates your annual property tax bill from your home's assessed value and your local effective tax rate — plus a monthly figure useful for budgeting an escrow account.

How to use it

Enter your home's Assessed value.
Enter your Local effective tax rate — check a recent tax bill or your county assessor's site for the exact figure.
Read your estimated annual and monthly property tax in the result panel.

Formula

Annual property tax = assessed value × local effective tax rate

Property tax rates are set entirely locally (by county, city, and school district), not federally — this is simple arithmetic on the rate you supply, not a lookup of your specific jurisdiction's actual rate.

Worked example

A $400,000 assessed home value at a 1.1% effective rate — close to the ~0.99% U.S. national average — comes to $4,400 a year, or about $367 a month if you're budgeting for an escrow payment.

Interpreting your result

"Assessed value" is often not the same as market value — many jurisdictions apply an assessment ratio, cap annual increases (like California's Proposition 13), or reassess only periodically. Check your county assessor's site for your property's actual current assessed value rather than assuming it equals what you'd sell the home for.

Recommendations

• Effective property tax rates vary roughly 7x across U.S. states, from under 0.3% (Hawaii) to over 2.2% (New Jersey) — a national average is a poor substitute for your actual local rate.
• Many jurisdictions offer exemptions (homestead, senior, veteran) that reduce your taxable assessed value — check if you qualify before assuming the full assessed value applies.
• A home's assessed value can lag well behind a fast-rising market value, or jump sharply after a sale triggers reassessment — don't assume last year's tax bill predicts next year's.

Frequently asked questions

Not usually — many jurisdictions apply an assessment ratio below market value, cap how fast assessed value can rise year to year, or only reassess periodically (e.g., at sale). Check your county assessor's site for your actual assessed value.