Property Tax Calculator
Estimate your property tax liability. Enter your assessed home value and your local tax rate to see your annual and monthly costs.
Property Details
National average is approx 1.1%, but it ranges from 0.28% (Hawaii) to 2.49% (New Jersey).
About Property Taxes
Property taxes are the primary source of revenue for local governments in the United States. Homeowners pay these taxes to fund essential public services including public schools, police and fire departments, road maintenance, libraries, and parks. Property tax rates and assessment methods vary significantly between states and even between counties within the same state.
How Property Tax is Calculated
Property tax is calculated by multiplying the assessed value of your property by the local tax rate (often called a "mill rate" or "millage rate"):
Annual Property Tax = Assessed Value x Tax Rate
- Assessed Value: The value assigned to your property by a public tax assessor. In most states, this is a percentage of the fair market value (e.g., 80% in some counties).
- Tax Rate / Mill Rate: One "mill" equals $1 of tax per $1,000 of assessed value. A rate of 20 mills = 2.0% effective rate.
Average Effective Property Tax Rates by State (2025)
| State | Avg. Rate | Avg. Annual Tax |
|---|---|---|
| New Jersey | 2.23% | $9,527 |
| Illinois | 2.08% | $5,100 |
| Texas | 1.60% | $4,070 |
| National Average | 1.10% | $2,690 |
| Hawaii | 0.27% | $1,971 |
Property Tax Deductions
If you itemize deductions on your federal tax return, you can deduct property taxes paid — but this is subject to the $10,000 SALT cap ($5,000 if married filing separately). This limit combines state/local income taxes and property taxes.
Frequently Asked Questions
How is property tax calculated?
Property tax is calculated by multiplying your property's assessed value by the local tax rate. For example, a home assessed at $300,000 with a 1.5% rate would owe $4,500 per year.
What is a mill rate?
A mill rate is the tax rate used to calculate property taxes. One mill equals $1 in tax per $1,000 of assessed value. A 20-mill rate means you'd pay $20 for every $1,000 of your property's assessed value, or 2%.
Can I appeal my property tax assessment?
Yes. If you believe your property has been over-assessed, you can file an appeal with your local tax assessor's office. Evidence such as recent comparable sales, an independent appraisal, or documentation of property defects can support your case.