Property Tax Calculator: Estimate Your Annual Property Tax Bill

Property taxes are one of those ongoing costs that home buyers often underestimate — and then feel every month when they see their escrow payment. They vary wildly by location: a $400,000 home in New Jersey might pay $9,000/year in taxes while the same home in Hawaii pays $1,400/year. Knowing your likely tax bill before you buy matters a lot for true affordability.

The CalcHub Property Tax Calculator estimates your annual and monthly property tax from assessed value and local tax rate.

How Property Tax Is Calculated

Annual Tax = Assessed Value × Mill Rate ÷ 1,000

Or equivalently:

Annual Tax = Assessed Value × Effective Tax Rate

The "assessed value" isn't always the market value — many jurisdictions assess at a fraction of market value (called the assessment ratio). If your home has a market value of $400,000 and your county's assessment ratio is 80%, your assessed value is $320,000.

Effective Tax Rate = Mill Rate × Assessment Ratio ÷ 1,000

Effective Property Tax Rates by State (Approximate)

State	Effective Rate	Annual Tax on $300K Home
New Jersey	2.2%	$6,600
Illinois	2.1%	$6,300
New Hampshire	2.0%	$6,000
Texas	1.7%	$5,100
Wisconsin	1.6%	$4,800
New York	1.6%	$4,800
Ohio	1.5%	$4,500
Pennsylvania	1.5%	$4,500
Florida	0.9%	$2,700
California	0.7%	$2,100
Arizona	0.6%	$1,800
Hawaii	0.3%	$900

These are effective rates — actual rates vary by county and municipality within each state.

What Affects Your Bill

Exemptions can significantly reduce your taxable assessed value:

• Homestead exemption (primary residence): reduces assessed value by a set amount or percentage
• Senior/disability exemptions: available in many states
• Veterans exemptions
• Agricultural use exemptions (for rural land)

Appeals: If you believe your property is over-assessed, most counties have an appeal process. Get comps of similar properties with lower assessments. Success rates for well-documented appeals are often 30–50%.

Budget Example: Monthly Property Tax

If you're budgeting a mortgage, your lender will usually escrow property taxes monthly:

Annual Tax	Monthly Escrow Addition
$2,400	$200
$4,800	$400
$7,200	$600
$9,600	$800
$12,000	$1,000

A $400,000 home in a high-tax state like New Jersey at 2.2% effective rate would add $733/month to your housing costs — before interest, insurance, or maintenance. That same home in Hawaii adds $117/month.

How to Look Up Your Actual Rate

Don't rely on estimates for major decisions. Check:

1. County assessor's website — look up the property by address for current assessment and last year's tax bill
2. Tax collector's website — lists the current mill rate by district
3. Real estate listing — Zillow, Redfin, and others often show estimated taxes pulled from public records

For investment properties, always verify the current tax bill because assessments often reassess after a sale.

Do property taxes ever go down?

They can — if your assessment is reduced (through appeal or a declining market), or if your jurisdiction passes tax relief. But in practice, most property taxes trend upward over time as assessed values rise and municipalities need more revenue.

What is Proposition 13 in California and how does it work?

California's Prop 13 caps annual assessment increases at 2% per year once you own a property, regardless of market appreciation. This means long-term owners pay much lower taxes than buyers at today's prices. A house worth $1.2M might be assessed at $200K if the owner bought in 1985. New buyers are assessed at purchase price.

Are property taxes deductible?

Up to $10,000 in combined state and local taxes (SALT) is deductible for federal income tax purposes, subject to the TCJA rules (in effect through 2025). Check current year IRS guidance as the SALT cap is subject to change.

Related Tools

• Property Value Calculator — estimate your home's market value
• Closing Costs Calculator — taxes appear in closing costs too
• Rent vs Buy Calculator — property taxes factor into the full comparison