Estimate your annual property tax bill based on home value, assessment ratio, and local tax rate.
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The Chen family is buying a $340,000 home in Columbus, Ohio. Combined income $115,000, 10% down payment, 30-year fixed at 7.125%.
Takeaway: Columbus/Franklin County averages are the reference baseline. Property tax rates and insurance premiums shift significantly by ZIP code and HOA status. Plug your actual numbers in above.
We default to state-average millage rates. County and municipal rates vary 40%+ within a single state. Ohio ranges from 0.8% (rural counties) to 2.4% (Cuyahoga/Cleveland area). Always cross-check your specific county assessor's published effective rate.
Property Tax by StateHomeowner association fees add $100-$800/month in condos and planned communities. Condos in urban markets often run $400-$700/month. If your property has HOA, add it manually to any payment estimate — it directly affects your debt-to-income ratio for loan qualification.
HOA Fee CalculatorClosing costs typically run 2-5% of the loan amount — around $6,000-$15,000 on a $300K home. Lender fees, title insurance, escrow, and prepaid taxes add up fast. These are due at closing in cash, not rolled into the mortgage by default.
Closing Costs CalculatorPrivate mortgage insurance (PMI) costs 0.5-1.5% of the loan annually until you reach 20% equity. On a $300K loan at 1%, that's $250/month. PMI cancels automatically at 78% LTV under federal law — but you can request removal at 80%.
National home price appreciation has averaged ~4% annually since 1968, but markets diverge dramatically. Sun Belt metros averaged 10%+ during 2020-2022; coastal markets often lag the national average during correction cycles. Local supply constraints are the main driver.
If you've lived in the home 2 of the last 5 years, you can exclude $250K (single) or $500K (married) of gain from federal capital gains tax. Many calculators show gross profit without applying this exclusion. Relevant when projecting sale proceeds.
Home Sale Capital Gains CalculatorBased on your inputs
Effective rate: 0.0%
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Property tax = Assessed Value × Tax Rate. The assessed value is set by your local tax assessor, usually as a percentage of market value. The tax rate is set by local governments to fund schools, roads, and public services.
Example: Home market value $400,000 assessed at 90% = $360,000. Tax rate 1.5%. Annual property tax: $5,400.
Homestead exemption (primary residence), senior citizen exemption, veteran exemption, and disability exemptions can significantly reduce your taxable assessed value. Always apply for all exemptions you qualify for—they can save $300–$1,000/year or more.
Property tax = Assessed Value × Tax Rate. Assessed value is usually 80-100% of market value, and rates vary by county and state.
The national average is about 1.07% of home value per year, ranging from 0.32% (Hawaii) to 2.23% (New Jersey).
Yes. Apply for homestead and other exemptions, and consider appealing your assessed value if it seems too high.
A homestead exemption reduces the assessed value of your primary residence. For example, a $25,000 exemption on a $300,000 home means you only pay tax on $275,000.
Contact your county assessor to file a formal appeal. Gather evidence of comparable home sales showing lower values, document any property issues, and present your case at a hearing. About 30 to 40 percent of appeals result in reductions.
Market value is what your home would sell for today. Assessed value is the value your county assigns for tax purposes, typically 80 to 100 percent of market value depending on local assessment ratios and caps.
Most counties reassess property values annually or every two to three years. Some states like California limit reassessment until the property is sold under Proposition 13. Check your local rules for reassessment frequency.
Yes, property taxes are deductible if you itemize on Schedule A. However, the SALT deduction cap limits state and local tax deductions including property tax to $10,000 per year for most filers.
A millage rate expresses the tax per $1,000 of assessed value. One mill equals $1 per $1,000. A 20-mill rate on a $250,000 assessed value produces a $5,000 annual property tax bill.
Usually yes. When your home value increases at reassessment, your assessed value rises and so does your tax bill unless the tax rate decreases. Some states cap annual assessment increases at 2 to 3 percent to limit sudden jumps.
Annual Tax = (Home Value × Assessment Ratio − Exemptions) × Tax Rate
Monthly Escrow = Annual Tax ÷ 12. Effective Rate = Annual Tax ÷ Home Value.
Every formula on this page traces to a federal agency, central bank, or peer-reviewed institution. We cite the rule-makers, not secondhand blogs.
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Result: $12,844/yr before rebate, $11,344/yr after ANCHOR — $945/mo escrow
New Jersey uses full-value assessment (unlike many states with fractional ratios). The 2.47% statewide effective rate is the highest in the US per Tax Foundation. The ANCHOR program provides $1,500 rebates to homeowners earning under $150k — apply every year; it is not automatic.
Result: Long-term owner: $4,226/yr. New buyer same home: $8,360/yr. Difference: $4,134/yr
California Proposition 13 caps annual assessment growth at 2% until a property sells. The original 2005 buyer pays tax on $556k basis; a 2026 buyer pays tax on $1.1M basis. This 2x tax gap persists for the life of the tenure — a major hidden subsidy to long-term Californians and a major cost bump for newcomers.
Result: $4,320/yr — $1,980/yr less than without exemptions
Texas raised the homestead exemption to $100,000 via 2023 Proposition 4 (SB 2). Combined with the age-65 senior exemption ($10k) plus the 10% annual cap on homestead appraisal growth, Texas seniors can see dramatic effective-rate reductions. File with your county appraisal district once — it carries forward.
Result: Non-resident: $4,950/yr. Resident: $2,520/yr. Premium: $2,430/yr for non-homestead status
Hawaii counties tier property tax by owner-occupancy status. Maui's Residential A (non-homestead) rate is ~2x the resident rate. Similar tiering exists in Honolulu. Out-of-state investors and second-home owners pay the premium.
The listing reflects the seller's assessed value, often locked under caps (Prop 13, Save Our Homes, Texas 10% cap). Your assessment resets on purchase — re-quote at market value × local rate.
Impact: A Florida home listed with $2,800 tax may bill at $6,500 in year one for the new owner.
Most states reduce assessed value $25k–$100k for owner-occupants who file. Filing is a one-time county form, but it's not automatic — the default is no exemption.
Impact: Texas homestead saves ~$1,800/yr on a median home. Florida Save Our Homes caps increases at 3%/yr (vs 10%). Missed filings cost thousands.
About 30–40% of appeals succeed per state assessor associations. File when comparable sales show your assessment is 10%+ above market. Deadline is typically 30–60 days after assessment notice.
Impact: A 10% overassessment on a $400k home at 1.5% rate = $600/yr in excess tax — $18,000 over 30 years.
A mill = $1 per $1,000 of assessed value. 20 mills = 2.0%. Local disclosures often quote mills; always convert to percentage for apples-to-apples comparison.
Impact: Mistaking 25 mills for 2.5% (vs correct 2.5%) is accidentally correct; mistaking 25 mills for 25% is a 10x error.
IRS caps the combined state + local + property tax (SALT) deduction at $10,000/yr for 2018–2025 (TCJA). High-tax state homeowners lose deductibility on overage.
Impact: A NJ homeowner with $13,000 property tax + $8,000 state income tax hits SALT cap — $11,000 of those taxes become non-deductible.
State-specific rates, taxes, and cost-of-living adjustments
Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.