How much will you pay in property taxes on a home? That number can be surprisingly different from one property to another, even when the homes have similar prices.
When you're comparing homes, it's easy to focus on the purchase price and mortgage payment. Property taxes are another recurring expense that can have a noticeable effect on your monthly housing budget.
This free Property Tax Calculator helps you estimate annual and monthly property taxes using the property's assessed value, estimated property tax rate and an optional taxable-value reduction.
You can use it to compare different homes, test different tax rates and get a quick estimate of how property taxes could affect the cost of owning a home.
Two homes with similar market values can have different property tax bills because assessment methods, tax rates, exemptions, taxing districts and other local rules can vary.
This calculator was created by Revisiting Tools as an educational planning tool. It provides a simplified estimate using the values entered by the user.
It is not an official property tax bill, tax assessment or personalized tax advice. Actual property taxes depend on your property's location, assessment, applicable tax rates, exemptions, special assessments and other local rules.
Property Tax Calculator
Enter your estimated property value, assessed value and property tax rate to estimate your annual and monthly property tax.
Enter the estimated market value or purchase price of the property.
Enter the estimated value used for the property tax calculation.
Enter the annual property tax rate as a percentage. For example, 1.20% means 1.20 percent per year.
Enter an estimated reduction in taxable value if an applicable exemption or adjustment applies.
Some properties may have special assessments, multiple taxing districts or other local charges that aren't represented by a simple property tax rate. Use your official property tax information when you need an exact amount.
This calculator provides a simplified estimate for educational purposes. Actual property taxes can vary because of local assessment rules, tax rates, exemptions, special assessments, reassessments and other factors.
What Is Property Tax?
Property tax is a tax generally imposed on real property such as homes and land. Property tax revenue can help fund local public services and government operations.
The way property taxes are calculated varies across the United States. Different states, counties, cities, towns and other taxing authorities can have different assessment procedures, rates and exemptions.
That is why there isn't one property tax rate that applies to every home in the country.
How Is Property Tax Calculated?
A simplified property tax calculation can be represented as:
For example, if a property has a taxable value of $400,000 and the assumed annual property tax rate is 1.20%, the simplified calculation would be:
$400,000 × 1.20% = $4,800 per year
That is approximately $400 per month when the annual amount is divided by 12.
This is a simplified calculation. Actual property tax bills can be more complicated because local governments may apply different assessment rules, exemptions, taxing districts and special assessments.
What Is the Difference Between Home Value and Assessed Value?
This distinction is important when you're estimating property taxes.
Home value can refer to the property's market value or purchase price. Assessed value is the value used by the applicable taxing authority when determining property taxes.
Those numbers can be the same, but they don't necessarily have to be.
For example, you might purchase a home for $400,000 while the value used for property tax purposes is different.
This calculator therefore lets you enter the home value and assessed value separately.
What Is Taxable Value?
Taxable value is the amount used for the property tax calculation after applicable adjustments are taken into account.
Depending on the local rules, exemptions or other adjustments may reduce the portion of the property's value that is subject to tax.
For this calculator, the Taxable Value Reduction field represents a simplified dollar reduction from the assessed value.
Assessed value: $400,000
Taxable value reduction: $20,000
Estimated taxable value: $380,000
Actual exemption programs don't always work this way. The calculation above is simply a convenient way to model a taxable-value reduction. Check your local tax authority for the exact treatment of an exemption.
What Is a Property Tax Rate?
The property tax rate determines how much tax is applied to the taxable value under the assumptions used by the calculator.
For example, a 1.20% annual rate means that a simplified calculation would apply 1.20% to the taxable value.
Property tax rates can vary significantly between locations. A rate shown on a property tax document may also be presented differently from the percentage used in this calculator.
What Is a Millage Rate?
Some U.S. property tax authorities use a millage rate instead of expressing the rate directly as a percentage.
One mill represents $1 of tax for every $1,000 of taxable value.
10 mills = $10 per $1,000 of taxable value.
In a simplified percentage conversion, 10 mills equals 1%.
Property tax bills can involve several taxing authorities and different rates, so don't assume that one millage figure always represents your entire property tax obligation.
Where Can I Find My Property Tax Rate?
If you're trying to use this calculator for a specific home, start with the property's official tax information when possible.
Depending on your location, you may find useful information through your county assessor, county treasurer, local property tax office, official property records or your existing property tax statement.
If you're buying a home, the property's previous tax bill can also provide a useful starting point. However, don't automatically assume that the previous owner's tax bill will be your future tax bill. Assessment rules and other factors can change.
If you know the property's tax rate, enter it in the calculator above. If you're unsure, verify the rate and applicable rules with the appropriate local authority.
How Much Property Tax Will I Pay Per Year?
Your estimated annual property tax depends on the taxable value and applicable tax rate.
For example, suppose a home has a taxable value of $400,000 and the assumed annual property tax rate is 1.20%.
The simplified calculation is:
That does not mean every $400,000 home will have a $4,800 property tax bill. The actual amount depends on the property's local tax situation.
How Much Property Tax Will I Pay Per Month?
Property taxes are commonly billed according to the schedule used by the local taxing authority. However, homeowners often think about the cost on a monthly basis when planning their household budget.
A simple monthly equivalent can be calculated by dividing the estimated annual property tax by 12.
$4,800 annual property tax ÷ 12 = $400 per month
This is a budgeting estimate. It doesn't necessarily mean your local tax authority sends you a bill every month.
How Much Property Tax Is Charged Per $100,000?
Another useful way to understand a property tax rate is to calculate the estimated tax on each $100,000 of taxable value.
For example, at a 1.20% annual tax rate:
That is equivalent to approximately $100 per month.
This can make it easier to compare the effect of different tax rates without focusing only on the total value of a particular property.
Does a More Expensive Home Always Have Higher Property Taxes?
Not necessarily in a simple one-to-one relationship.
A more expensive home may have a higher assessed or taxable value, but the final property tax bill depends on the applicable assessment rules, tax rates, exemptions and other local factors.
Two homes with similar market values can therefore have different property tax bills.
When comparing homes, it's better to look at the actual or estimated property tax for each property rather than assuming that similar purchase prices mean identical tax bills.
How Does Property Tax Affect Your Mortgage Payment?
Property taxes are separate from the principal and interest on your mortgage, but they can still affect the amount you need to budget for housing.
If your mortgage has an escrow arrangement, your lender may collect money for property taxes and homeowners insurance as part of your monthly payment.
As a result, the amount leaving your bank account each month can be higher than the principal-and-interest payment alone.
For a broader estimate of mortgage costs, try our Mortgage Payment Calculator .
Example: Property Tax on a $400,000 Home
Let's look at a simple example.
Suppose you are considering a $400,000 home. Assume the assessed value is also $400,000, there is no taxable-value reduction, and the estimated property tax rate is 1.20%.
The simplified annual property tax would be:
Monthly equivalent:
$4,800 ÷ 12 = $400 per month
Now imagine that the taxable value is reduced by $20,000 under an applicable adjustment. The simplified taxable value would become $380,000.
At the same 1.20% rate:
$380,000 × 1.20% = $4,560 per year
The example demonstrates why taxable value and the applicable tax rate both matter.
How Do Property Tax Exemptions Affect the Calculation?
Some homeowners may qualify for property tax exemptions or other tax benefits under state or local programs.
Eligibility and calculation methods vary significantly. Some programs may reduce taxable value, while others may affect the tax bill in a different way.
For that reason, the exemption field in this calculator should be treated as a simplified taxable-value reduction rather than a universal model of every exemption program.
If you're estimating an actual tax bill, use the official rules for your property and location.
Can Property Taxes Change After You Buy a Home?
Yes. Property taxes aren't necessarily fixed permanently.
The assessed value, tax rates, exemptions and local rules can change over time. Some properties may also be reassessed under circumstances defined by the applicable jurisdiction.
This means today's property tax estimate should not automatically be treated as a guaranteed amount for every future year.
Why Property Taxes Matter When Buying a Home
Property taxes can make a meaningful difference to the ongoing cost of owning a home.
Imagine two homes with similar purchase prices but different annual property taxes. The home with the lower purchase price isn't necessarily the cheaper property to own if its other recurring costs are substantially higher.
This is why home buyers should look beyond the listing price and mortgage payment when comparing properties.
If you're trying to estimate what home price fits your overall budget, use our Home Affordability Calculator .
Property Taxes When Comparing Renting and Buying
Renters generally don't receive a separate property tax bill for the home they rent, while homeowners are responsible for property taxes on their property.
Property taxes therefore belong in a broader rent-versus-buy comparison.
If you're comparing the financial cost of renting with buying, try our Rent vs. Buy Calculator .
What Other Homeownership Costs Should You Consider?
Property taxes are only one part of the cost of owning a home. Depending on the property, your housing budget may also need to include:
- Mortgage principal and interest.
- Homeowners insurance.
- PMI when applicable.
- HOA fees.
- Maintenance.
- Repairs.
- Utilities.
- Landscaping or property services.
- Special assessments.
Some expenses are predictable while others can be difficult to forecast. Leaving room in your budget for maintenance and unexpected repairs can make homeownership easier to manage.
What This Property Tax Calculator Does Not Include
This calculator is intentionally designed as a simple planning tool. It doesn't attempt to reproduce every local property tax system in the United States.
Depending on your location, your actual property tax calculation may involve:
- Multiple taxing authorities.
- Different taxing districts.
- Local assessment rules.
- Assessment limits.
- Homestead or other exemptions.
- Special assessments.
- Tax abatements or credits.
- Reassessment rules.
- Changes in assessed value.
- Changes in tax rates.
Because these rules differ between locations, use the calculator as an estimate rather than a replacement for an official property tax statement.
How to Use the Property Tax Calculator
Start by entering the property's estimated home value and assessed value.
Next, enter the annual property tax rate as a percentage. If an applicable adjustment reduces taxable value, enter that amount in the Taxable Value Reduction field.
Select Calculate Property Tax and the calculator will estimate:
- Estimated taxable value.
- Estimated annual property tax.
- Estimated monthly property tax.
- Estimated property tax per $100,000 of taxable value.
- Estimated effective tax rate based on the home value.
Try changing one number at a time to see which assumptions have the largest effect on the estimated tax bill.
How to Compare Property Taxes Between Homes
If you're shopping for a home, don't compare properties using only their asking prices.
For each property, look at the estimated or actual property tax, mortgage payment, homeowners insurance, HOA fees and other recurring expenses.
For example, a $400,000 home with a $4,000 annual property tax bill has a different ongoing cost from a $400,000 home with an $8,000 annual property tax bill.
The purchase price is identical in that example, but the recurring tax expense is not.
Try Different Property Tax Scenarios
One useful way to use this calculator is to test several possible situations.
- Compare a 0.75% tax rate with a 1.20% rate.
- Try a higher assessed value.
- Try a lower assessed value.
- Test a possible taxable-value reduction.
- Compare two homes with the same purchase price.
- Compare properties with different tax rates.
Changing one assumption at a time makes it easier to understand what is driving the difference in the estimated property tax.
How Different Tax Rates Affect a $400,000 Taxable Value
The following table assumes a taxable value of $400,000. It is a mathematical example and does not represent the actual property tax rate for any particular location.
| Tax Rate | Estimated Annual Tax | Monthly Equivalent |
|---|---|---|
| 0.50% | $2,000 | $167 |
| 0.75% | $3,000 | $250 |
| 1.00% | $4,000 | $333 |
| 1.20% | $4,800 | $400 |
| 1.50% | $6,000 | $500 |
| 2.00% | $8,000 | $667 |
This simple comparison shows how even a relatively small change in the assumed tax rate can affect the annual housing expense.
How Should Property Taxes Fit Into Your Housing Budget?
Property taxes are only one part of your overall housing cost.
A realistic budget may also include:
- Mortgage principal and interest.
- Homeowners insurance.
- PMI when applicable.
- HOA fees.
- Maintenance.
- Repairs.
- Utilities.
- Other household expenses.
Looking at these costs together gives you a more useful picture than looking at the mortgage payment or property tax alone.
Frequently Asked Questions
Here are common questions about property taxes, assessed value, taxable value and estimating the cost of owning a home.
How do I calculate property tax on a home?
A simplified calculation is taxable value multiplied by the annual property tax rate. For example, a $400,000 taxable value at 1.20% would produce an estimated $4,800 annual tax before additional local adjustments.
How much is property tax on a $400,000 house?
There is no single answer because property tax rates and assessment rules vary by location. At a simplified 1.20% rate applied to a $400,000 taxable value, the estimate would be $4,800 per year.
How much is $4,800 property tax per month?
If $4,800 is the estimated annual property tax, dividing it by 12 gives a monthly equivalent of $400.
Is property tax based on the home's purchase price?
Not necessarily. Property tax systems can use assessed values and different local rules. The taxable value used for a property tax calculation may differ from the purchase price or market value.
What is assessed value?
Assessed value is a value used by the applicable taxing authority for property tax purposes. How that value is determined varies by jurisdiction.
What is taxable value?
Taxable value is the amount used for a property tax calculation after applicable adjustments under the relevant rules. It may differ from market value or purchase price.
What is a property tax rate?
A property tax rate is the rate applied to taxable property value to calculate property tax under the applicable local system. Rates can vary between locations.
What is a millage rate?
A mill represents $1 of tax for every $1,000 of taxable value. Ten mills is equivalent to 1% in a simplified percentage conversion.
Can property taxes increase after I buy a house?
Yes. Property taxes can change because of changes in assessed value, local tax rates, exemptions, reassessments and other applicable rules.
Does this calculator include property tax exemptions?
It includes an optional field for a taxable-value reduction. Actual exemption programs can work differently depending on the location, so use your local tax authority's rules for an actual calculation.
Does property tax affect my mortgage payment?
Property taxes are separate from mortgage principal and interest, but they increase your overall monthly housing cost. If taxes are collected through escrow, they may be included in the amount paid to your lender each month.
Does this calculator include homeowners insurance?
No. This calculator focuses on estimated property taxes. Homeowners insurance is a separate housing expense and should be considered when estimating your complete monthly housing cost.
Does this calculator include HOA fees?
No. HOA fees are separate from property taxes. If the property has an HOA, include that expense separately in your housing budget.
Is this property tax calculator tax advice?
No. It is an educational calculator that provides a simplified estimate based on the information entered by the user. It is not tax, legal, financial, mortgage or investment advice.
Property Tax Calculator: The Bottom Line
Property taxes can have a meaningful effect on the ongoing cost of owning a home. The amount you pay can depend on assessed value, taxable value, local tax rates, exemptions, special assessments and other local rules.
The easiest way to understand the impact is to run a few scenarios. Try different assessed values and tax rates in the calculator above and compare the estimated annual and monthly amounts.
Remember that the result is a planning estimate, not an official property tax bill. If you're making an actual home purchase decision, check the property's tax records and the applicable local government information.
For a broader picture of your potential housing costs, you can also use our Mortgage Payment Calculator , Home Affordability Calculator and Rent vs. Buy Calculator .