Transparent method
The formula
Worked example
Example inputs
How to interpret the result
Two homes worth the identical market price can carry very different property tax bills, because the taxable figure is the assessed value, not the market value, and the two rarely match exactly. Assessment ratios, reassessment schedules and local exemptions vary by jurisdiction, so a rate that looks low can still produce a large bill if the assessment lags or leads the actual market.
Before you rely on it
What to check
Pull the actual assessed value off a current tax bill or assessor notice, not an estimate of what the home would sell for today.
The common error
Where people go wrong with property tax calculator
Using an online home-value estimate as the assessed value. Assessors often use a different valuation date and method, and a market estimate can overstate or understate the real bill by a meaningful amount.
Sensitivity evidence
How property-tax rate changes the estimated annual property tax
| Property-tax rate | Estimated annual property tax | Estimated monthly amount |
|---|---|---|
| 0.700% | $2,800 | $233 |
| 0.950% | $3,800 | $317 |
| 1.2%worked example | $4,800 | $400 |
| 1.4% | $5,800 | $483 |
| 1.7% | $6,800 | $567 |
Every input, tested
Which input moves the estimated annual property tax most
| Input | Tested from | To | Estimated annual property tax at each end | Swing |
|---|---|---|---|---|
| Property-tax rate | 0.950% | 1.4% | $3,800 to $5,800 | $2,000 (42%) |
| Market value | $360,000 | $440,000 | $4,320 to $5,280 | $960 (20%) |
| Assessment ratio | 98.0% | 102.0% | $4,704 to $4,896 | $192 (4.0%) |
Two variables at once
Estimated annual property tax by property-tax rate and market value
| Property-tax rate \ Market value | $320,000 | $400,000 | $480,000 |
|---|---|---|---|
| 0.700% | $2,240 | $2,800 | $3,360 |
| 0.950% | $3,040 | $3,800 | $4,560 |
| 1.2% | $3,840 | $4,800 | $5,760 |
| 1.4% | $4,640 | $5,800 | $6,960 |
| 1.7% | $5,440 | $6,800 | $8,160 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Market value | $400,000 |
| Assessment ratio | 100.0% |
| Property-tax rate | 1.2% |
| Estimated annual property tax | $4,800 |
| Estimated monthly amount | $400 |
Where the inputs come from
Market value is the estimated worth of the home, and the assessment ratio is the share of market value that the local assessor taxes, which is 100% in some places and much lower in others. The property tax rate, also called the millage or levy rate, is the tax per $100 or per $1,000 of assessed value, set by each taxing district. Your tax bill or your county assessor's website lists the assessed value and the rate for the property.
Using the estimated annual property tax in a real decision
Check local exemptions such as homestead or senior credits.
When the result stops applying
Assessed values often lag market values and can jump after a sale or reassessment, so the current owner's bill is a poor guide to what a new buyer will pay in some states. Special assessments, school and emergency-services districts and voter-approved levies change the total. Tax caps and exemptions differ by state and by owner.
What to compare it with
Add the tax to a full payment with the mortgage payment calculator, and see the true cost of homeownership page for the whole picture. The escrow shortage calculator shows what happens when the bill rises. If your assessment looks too high, comparing it with similar homes is the basis for an appeal.
People also ask
Frequently asked questions
How is property tax calculated?
The assessor sets an assessed value, which is often a share of market value, and the local taxing districts apply their combined rate to it.
Can I appeal my property tax assessment?
Yes. Most jurisdictions have an appeal process with a deadline, and evidence such as comparable sales and errors in the record can lower the assessed value.
Will my taxes rise after I buy a home?
In many areas yes, because the county reassesses at the sale price. Ask the assessor how it works, and estimate the new bill before you commit.