Property Tax Calculator

Property tax is a yearly tax on real estate, collected by local governments — typically your county, city, or school district — to fund schools, roads, fire and police departments, and other local services. It's calculated as a percentage of your property's value.

Different places express the rate differently. Most use an effective property tax rate — a simple percentage of market value (e.g. “1.2% of home value”). Many also use a millage rate expressed in “mills” (1 mill = 0.1% = $1 per $1,000 of assessed value). They're two ways of writing the same tax; this calculator uses the effective-rate form because it's simpler to compare.

Rates vary enormously by state. New Jersey leads the nation at about 2.49% effective rate, while Hawaii is the lowest at roughly 0.32%. On a $500,000 home that's the difference between $12,450/year in NJ and $1,600/year in HI — over $10,000 a year, or $300,000 over a 30-year mortgage.

Within a state, counties and cities also vary — sometimes by 50% or more. The state average is a starting point; your actual rate depends on which school district, fire district, water district, and other taxing entities cover your home. Your county assessor's website will show the exact components.

Most homeowners pay property tax through an escrow account: your lender collects 1/12 of the annual bill with each mortgage payment, holds it, and pays the county directly when the bill comes due.