US Property Tax Estimator
Estimate annual property tax by state and county based on home value and tax rates. Helps buyers understand real estate tax liability before purchase.
Home Value
Annual Property Tax
Cost of Home Ownership
Property tax is typically included in your monthly mortgage payment through an escrow account.
Important:
This is an estimate based on state averages. Your actual property tax depends on your county, local assessments, homestead exemptions, and other factors. Check your county assessor for precise calculations.
How US Property Tax Actually Gets Calculated
Property tax = assessed value x mill rate. Assessed value is the local assessor's number (often less than market value, especially in California), mill rate is dollars of tax per $1,000 of assessed value. A home assessed at $400,000 in a jurisdiction with a 25 mill rate (2.5%) owes $10,000/year in property tax. Reassessment timing varies: New York reassesses annually, California only on sale (Proposition 13).
States with low or no income tax often have higher property tax to compensate. New Jersey averages 2.46% effective rate; Texas 1.69%; Hawaii is the lowest at 0.27%. On a $500,000 home that is $12,300/year in NJ vs $1,350 in HI - the same house, paying ten times more annual tax depending on the state.
Assessment vs Market Value
The assessor's valuation is rarely the same as what you would sell for. California Prop 13 limits assessed value increases to 2% per year, so a home bought in 2010 for $400,000 might still be assessed at $480,000 even if the market value is now $900,000. New Jersey and Texas typically assess close to market.
If you think your assessment is too high, you can appeal. Most jurisdictions have a 30-60 day window after assessment notice. Bring 3-5 comparable recent sales (similar size, similar neighborhood, sold in the last 6 months) below your assessed value. Successful appeals can save $1,000+ a year permanently.
Exemptions That Cut the Bill
Most states offer a homestead exemption that reduces taxable value on your primary residence. Florida exempts the first $50,000 plus an automatic 3% cap on annual increases (Save Our Homes). Texas exempts $100,000 of assessed value from school taxes. California offers a $7,000 exemption (small in absolute terms, structural in tax theory).
Senior, disabled, and veteran exemptions stack on top in most states. Some states freeze property tax for seniors over 65. Religious and educational properties are usually fully exempt. Check your county assessor's website annually - exemptions you qualify for do not always apply automatically; you have to file.
Escrow and the Surprise Increase
Most homeowners pay property tax via mortgage escrow: the lender collects 1/12 of estimated annual tax with each monthly payment, then pays the bill when due. When property values rise (or the local mill rate increases), the lender adjusts the escrow upward and your monthly payment jumps - sometimes by hundreds of dollars - mid-loan.
Reassessment after major renovations is common. Adding a bathroom, finishing a basement, or building an ADU can push assessed value up and trigger a permanent tax increase. In many California counties, knocking down and rebuilding triggers full reassessment of the whole property. The [US Mortgage Calculator](/us-mortgage-calculator) lets you model the full PITI payment including likely property tax.
Frequently Asked Questions
How is property tax different from real estate tax?
They are the same thing in the US. 'Property tax' is the more common term. Some places call it 'real estate tax' or 'real property tax' to distinguish from personal property tax, which is a separate tax some states charge on vehicles, boats, and business equipment.
Can I deduct property tax on my federal return?
Only if you itemise, and only up to the SALT cap of $10,000 combined with state income tax. For homeowners in high-tax states, the SALT cap means a chunk of property tax is no longer deductible. The standard deduction post-2018 is high enough that most homeowners do not itemise at all.
What happens if I do not pay property tax?
After typically 1-2 years of delinquency, the county can place a tax lien on the property. After 2-5 more years (varies by state), the property can be sold at tax auction to recover the back taxes. This is real - tens of thousands of homes go to tax auction nationally each year, often for fractions of market value.
How do I appeal my assessment?
Get the assessment notice (mailed annually in most jurisdictions). File the appeal form within the appeal window (often 30-60 days). Bring evidence: recent sales of comparable homes below your assessed value, photos of any defects, recent inspection reports. The cost is usually $0-50 to file. Win rate runs 30-50% for homeowners who present comp sales evidence.
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