Buying Tools
Property Tax Calculator
Estimate annual and monthly property taxes, plus the projected tax burden over the years you own the home. Real numbers — no signup required.
Property Tax Details
National average is 1.07%
Used to project future tax burden
Annual Property Tax
$0
Insights
How Property Taxes Work
Property taxes are recurring local levies assessed by counties, cities, school districts, and special taxing districts to fund public services such as schools, road maintenance, police and fire departments, and parks. The amount you pay is determined by multiplying your home's taxable assessed value by the millage or tax rate established by your local government.
When buying a home, property taxes are rarely paid in a single annual lump sum out of pocket. Instead, lenders collect one-twelfth of your projected annual property tax bill each month and deposit it into an escrow account. When tax bills become due, the lender pays the tax authority directly on your behalf.
Because home values appreciate over time and local tax rates adjust to meet municipal budgetary needs, your property tax liability will likely change throughout the life of your mortgage. Factoring in future appreciation and tax increases prevents unexpected escrow shortages.
Why Property Tax Varies So Much by State
Property tax rates across the United States exhibit extraordinary geographic divergence. States with no state income tax—such as Texas, Florida, and Tennessee—often rely heavily on higher property tax rates to fund public infrastructure and education. Conversely, states with robust income taxes may feature lower property tax percentages. Understanding your local effective tax rate is vital before committing to a home purchase.
Frequently asked questions
How is property tax calculated?
Property tax is calculated by multiplying your home's assessed taxable value by the local tax rate set by your taxing jurisdiction (county, municipality, school district). For example, a home valued at $400,000 in an area with a 1.07% tax rate generates $4,280 in annual property taxes.
What is the average property tax rate in the US?
The national average property tax rate hovers around 1.07% of the home's assessed value. However, effective rates vary dramatically across states, ranging from under 0.30% in states like Hawaii and Alabama to over 2% in states like New Jersey, Illinois, and New Hampshire.
Are property taxes included in my mortgage payment?
Yes, if you have an escrow account with your mortgage lender. Lenders typically collect one-twelfth of your estimated annual property taxes and homeowners insurance each month along with your principal and interest payment, holding those funds in escrow to pay tax bills on your behalf.
Do property taxes go up over time?
In most jurisdictions, yes. As your home appreciates in value, local governments periodically reassess properties, leading to higher assessed values. Additionally, local voters frequently approve school bonds or municipal referendums that raise local tax rates.
How can I appeal my property tax assessment?
If you believe your home's assessed value is higher than its fair market value compared to similar properties in your neighborhood, you can file an appeal with your local county tax assessor's office. Providing recent appraisal data or evidence of structural defects can help reduce your assessment.