Property Tax Calculator
Enter your home value and local tax rate to estimate your annual and monthly property tax bill.
Effective Property Tax Rates by State (2025)
| State | Effective Rate | Annual Tax on $300K Home |
|---|---|---|
| New Jersey | 2.23% | $6,690 |
| Illinois | 2.08% | $6,240 |
| Connecticut | 1.92% | $5,760 |
| New Hampshire | 1.77% | $5,310 |
| National Average | 1.10% | $3,300 |
| California | 0.73% | $2,190 |
| Alabama | 0.37% | $1,110 |
| Hawaii | 0.29% | $870 |
Effective rates are averages; actual rates vary by county and municipality. Source: Tax Foundation 2025.
Frequently Asked Questions
How is property tax calculated?
Property tax = Assessed Value × Mill Rate (tax rate). The assessed value is often a percentage of the market value — called the assessment ratio — which varies by jurisdiction. For example, a home with a $400,000 market value assessed at 80% = $320,000 assessed value. At a 1.2% tax rate, annual tax = $3,840. Most counties reassess properties every 1–5 years. You can appeal your assessed value if you believe it is too high.
What is the average property tax rate in the US?
The average effective property tax rate in the US is approximately 1.1% of market value, but it varies enormously by state and county. Highest: New Jersey (2.23%), Illinois (2.08%), Connecticut (1.92%), New Hampshire (1.77%). Lowest: Hawaii (0.29%), Alabama (0.37%), Colorado (0.51%), Nevada (0.55%). California is notably low at 0.73% due to Proposition 13, which limits annual increases to 2% until the property is sold.
What is a homestead exemption?
A homestead exemption reduces the taxable assessed value of your primary residence, lowering your property tax bill. Most states offer some form of homestead exemption. Examples: Texas exempts $100,000 from the school district portion. Florida exempts $50,000 (first $25K fully exempt; second $25K exempt from non-school levies). California's Proposition 19 allows $7,000 assessed value reduction for owner-occupied homes. Some states offer additional exemptions for seniors, veterans, and disabled homeowners.
Can I lower my property tax bill?
Yes — several strategies can reduce your property tax: (1) Appeal the assessed value if it exceeds fair market value (win rates are 30–50% for those who appeal). (2) Apply for all exemptions you qualify for — homestead, senior, veteran, disability. (3) Check for errors in the property record (wrong square footage, bedroom count, etc.). (4) In some jurisdictions, you can negotiate a payment plan or defer taxes if you meet income requirements. Note: the tax rate itself is set by local government and is not negotiable.
How does property tax affect my mortgage payment?
If you have a mortgage with an escrow account (required by most lenders), your monthly payment includes 1/12 of your estimated annual property tax. Your lender collects this monthly and pays the tax authority directly. If your property is reassessed and taxes increase, your monthly mortgage payment will increase at your next escrow analysis — typically once per year. On a $400,000 home with 1.1% tax rate, that is ~$367/month added to your mortgage payment just for property tax.