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Estimate your annual property tax bill and your monthly escrow payment in seconds.
Using the calculator above is straightforward. It needs only two inputs, and it updates your estimated tax bill instantly. Follow the steps below to get an accurate number for your situation.
Step 1: Enter your assessed home value. Type the assessed value of your property into the first field. This is the value your county or municipal assessor assigns to your home for tax purposes, and it is often different from the price you paid or the current market value. You can usually find it on your most recent property tax bill or by searching your address on your county assessor's website. If you are shopping for a new home, start with the listing price and keep in mind that the assessed value may be adjusted after purchase.
Step 2: Enter your effective tax rate. Type the combined effective tax rate for your property into the second field, expressed as a percentage. Many counties publish a single effective rate that already rolls in county, city, school district, and special-district levies. If your area quotes rates in mills instead, convert first: divide the mill rate by 1,000 to get the percentage. For example, 18.5 mills equals 1.85 percent.
Step 3: Press Calculate and read your results. The calculator shows three things: your estimated annual property tax, the equivalent monthly amount you would set aside in an escrow account, and a plain-English sentence summarizing the result. The monthly figure is especially useful if you have a mortgage, because most lenders collect one-twelfth of the annual bill with each mortgage payment and hold it in escrow until taxes are due.
Step 4: Use Reset to start over. The Reset button restores the default example values so you can quickly compare scenarios. Try running the numbers for several tax rates to see how much the rate alone changes your bill. A homeowner moving across a county line can see, in seconds, whether the new area costs hundreds or thousands more per year.
A few practical tips will improve your accuracy. First, confirm whether your state or county applies an assessment ratio, which taxes only a fraction of the appraised value; if so, enter the taxable assessed value, not the full appraisal. Second, subtract any exemptions you qualify for, such as a homestead exemption, before entering the value, because many bills are calculated on the value after exemptions. Third, remember that rates change. Taxing authorities vote on new levies and budgets every year, so re-run the calculator annually with the latest rate instead of assuming last year's bill repeats.
A property tax is a levy that local governments charge on real estate and, in some places, on other types of property. In the United States it is primarily a local tax: counties, cities, school districts, and special districts set their own rates and collect their own revenue. Unlike income taxes, which flow mostly to state and federal governments, property tax revenue stays close to home. It pays for public schools, police and fire departments, road maintenance, parks, libraries, water systems, and other services that directly affect the value and livability of the community where the property sits.
The tax is calculated from two ingredients. The first is the assessed value: the dollar value an assessor assigns to your property for taxation. Assessors typically estimate market value using recent comparable sales, replacement cost, or income potential, then may apply an assessment ratio. For example, a county with a 70 percent assessment ratio taxes a $400,000 appraisal at an assessed value of $280,000. Many jurisdictions also reassess on a fixed cycle, such as every one, two, or four years, which means your assessed value can jump after a reassessment even if you made no changes to the property.
The second ingredient is the tax rate, often expressed as a mill rate. One mill equals one dollar of tax for every $1,000 of assessed value, which is the same as 0.1 percent. A rate quoted as 15 mills therefore equals 1.5 percent. Most homeowners face a stack of overlapping levies: the county, the municipality, the school district, and sometimes fire, library, or utility districts each set their own millage. The effective rate is the sum of all of these, and it is the number that actually determines your bill.
It helps to distinguish the nominal rate from the effective rate. The nominal rate is the headline percentage printed in a tax table, while the effective rate is the tax you actually pay divided by the market value of the home. Because of assessment ratios, caps on annual increases, and exemptions, the effective rate is often lower than the nominal rate. When you use the calculator above, entering the effective rate gives you the most realistic estimate.
Property taxes are usually billed once or twice a year, but most homeowners with a mortgage pay monthly through escrow. The lender estimates the annual bill, divides it by twelve, and adds that amount to each mortgage payment. The money sits in an escrow account until the lender pays the tax authority on your behalf. This system smooths a large annual bill into predictable monthly chunks, but it also means your total monthly housing payment can rise even when your mortgage rate is fixed, simply because the tax portion increased.
Delinquent property taxes carry serious consequences. Unlike most debts, unpaid property taxes can lead to a tax lien against the property and, eventually, a tax sale or foreclosure. Penalties and interest accrue quickly. If you are struggling to pay, contact the tax collector's office before the due date: many offer installment plans, and some offer hardship deferrals for seniors or low-income owners.
The math behind property tax is refreshingly simple. Once you know your assessed value and your effective rate, the annual bill is a single multiplication:
Annual Property Tax = Assessed Value × Effective Tax Rate
The effective tax rate must be expressed as a decimal in the formula. Convert a percentage by dividing by 100: 1.1 percent becomes 0.011. Convert a mill rate by dividing by 1,000: 22 mills becomes 0.022. To estimate the monthly escrow amount, divide the annual result by 12:
Monthly Escrow = Annual Property Tax ÷ 12
Keep in mind that exemptions reduce the assessed value before the rate is applied. If your home is assessed at $350,000 and you qualify for a $50,000 homestead exemption, the taxable base is $300,000, not $350,000. Always apply the rate to the taxable value after exemptions.
A homeowner in a suburban county has an assessed home value of $350,000 and an effective tax rate of 1.1 percent.
Annual tax = $350,000 × 0.011 = $3,850.00
Monthly escrow = $3,850.00 ÷ 12 = $320.83
So this homeowner owes $3,850 per year, or about $320.83 per month through escrow. Over a 30-year mortgage, the tax portion alone totals $115,500 before any rate or assessment changes, which shows why the tax rate deserves as much attention as the mortgage rate when you buy.
A property is assessed at $525,000 in a district that levies a combined rate of 18.5 mills.
Convert mills to a decimal: 18.5 ÷ 1,000 = 0.0185
Annual tax = $525,000 × 0.0185 = $9,712.50
Monthly escrow = $9,712.50 ÷ 12 = $809.38
The annual bill is $9,712.50, or $809.38 per month. Notice how a rate that looks modest at 18.5 mills produces a bill nearly three times larger than the first example, because both the value and the rate are higher. This is exactly why converting mills correctly matters: a single misplaced decimal can throw your estimate off by a factor of ten.
Maya and Daniel are buying a $400,000 home and have narrowed their search to two neighboring counties. County A has an effective tax rate of 0.75 percent, while County B, with better-funded schools, charges 1.6 percent.
County A: $400,000 × 0.0075 = $3,000 per year ($250.00 per month)
County B: $400,000 × 0.016 = $6,400 per year ($533.33 per month)
The difference is $3,400 per year, or about $283 per month, every year they own the home. Over ten years that is $34,000, enough to change the affordability math entirely. Maya and Daniel decide the schools in County B are worth it to them, but they go in with eyes open: they budget the higher escrow from day one instead of being surprised by the first annual escrow analysis. Whenever you compare homes across tax boundaries, run both scenarios in the calculator above before making an offer.
Rosa, 68, owns her $275,000 home outright and lives on a fixed retirement income. Her county's effective rate is 1.25 percent, and she qualifies for a $25,000 senior homestead exemption.
Taxable value = $275,000 − $25,000 = $250,000
Annual tax = $250,000 × 0.0125 = $3,125.00 per year
Monthly set-aside = $3,125.00 ÷ 12 = $260.42 per month
Without the exemption, Rosa would owe $3,437.50, so the exemption saves her $312.50 a year. Because she has no mortgage and therefore no escrow account, she sets up an automatic monthly transfer of $260.42 into a dedicated savings account. When the tax bill arrives, the money is already there. Her story illustrates two lessons: always claim every exemption you qualify for, and treat property tax as a monthly expense even when no lender forces you to, because the bill arrives whether you budgeted for it or not.
Property tax errors are expensive because they compound year after year. Here are the five mistakes homeowners make most often, and how to avoid each one.
Many buyers enter the purchase price or a Zillow-style estimate into a tax calculator and get an inflated bill. Your tax is based on the assessed value, which is set by the assessor and may lag the market by a year or more. In some areas assessed values are capped and can sit far below market value for long-time owners. Always look up the official assessed value on your tax bill or the assessor's site before calculating. If you are buying, ask the seller or listing agent for the current assessed value and the most recent tax bill.
Assessments do not stay frozen. Most jurisdictions reassess on a cycle, and a hot market can push your assessed value up sharply at the next cycle. Some states cap annual assessment increases for existing owners, which cushions the blow, but the protection often resets when the property sells, snapping the assessment up to full market value. New buyers are the most vulnerable: the seller's low, capped assessment tells you nothing about what you will pay. Budget using a realistic post-sale assessment, not the seller's old bill.
Homestead, senior, veteran, disability, and agricultural exemptions can remove tens of thousands of dollars from your taxable value, yet assessors do not always apply them automatically. In many counties you must file an application, sometimes within a deadline after purchase or by a specific date each year. A homeowner who skips a $50,000 homestead exemption at a 1.5 percent rate overpays $750 every single year. Check your assessor's exemption page the month you buy, and re-check whenever your situation changes, such as turning 65 or a change in disability status.
Assessors value thousands of properties with mass-appraisal models, and they make mistakes. If comparable homes near you are assessed lower, or the assessor's records overstate your square footage, condition, or lot size, you can usually appeal within a short window after assessment notices go out. Successful appeals often reduce the assessment by 5 to 15 percent, and the savings repeat every year until the next reassessment. Gather three to five truly comparable sales, photograph any deferred maintenance, and file before the deadline. The process is free or low-cost in most counties.
First-time buyers frequently compare homes using only the mortgage payment of principal and interest, then feel blindsided when the lender quotes the full PITI payment: principal, interest, taxes, and insurance. In high-tax areas the tax and insurance portion can rival the mortgage itself. A $1,800 principal-and-interest payment with $650 in tax escrow and $150 in insurance is really a $2,600 monthly obligation. Always calculate the complete PITI figure before deciding what you can afford, and re-run the property tax portion of this calculator each year when your escrow analysis arrives, because shortages get added to the following year's monthly payment.
Property tax is only one piece of the homeownership puzzle. These related calculators from Sigma Calculator help you see the full picture: estimate your complete monthly payment including taxes and insurance, check how much house you can afford, compare renting with buying, understand the tax impact of your income, and plan for home equity or estate taxes down the road.
This page provides a free property tax calculator. Inputs: assessed home value in US dollars (default 350000) and effective tax rate as a percentage (default 1.1). Outputs: annual property tax (assessed value multiplied by rate as a decimal), monthly escrow amount (annual divided by 12), and a summary sentence. Formula: Annual Property Tax = Assessed Value × (Effective Tax Rate ÷ 100). Mill rate conversion: percentage = mills ÷ 10. Example: $350,000 at 1.1% = $3,850.00 per year = $320.83 per month. Content covers usage steps, definitions of property tax, mill rate, and assessed value, the formula with worked examples, practical scenarios, five common mistakes, related calculators, and eight frequently asked questions.
Property tax is calculated by multiplying your home's assessed value by the effective tax rate: Annual Tax = Assessed Value x Effective Tax Rate. For example, a $350,000 assessed value at a 1.1% rate gives $3,850 per year. Exemptions are subtracted from the assessed value before the rate is applied, and rates quoted in mills are converted by dividing by 1,000.
The national average effective property tax rate is roughly 1.1% of a home's value, but it varies widely by state and county. Rates below 0.5% are common in parts of the South and West, while some Northeastern and Midwestern areas exceed 2%. Because county, city, and school district levies stack, two homes a few miles apart can face very different rates.
Market value is what your home would sell for today. Assessed value is the value your local assessor assigns for tax purposes. Assessors may apply an assessment ratio (taxing only a percentage of market value), and many areas cap annual assessment increases, so the assessed value often lags behind or sits below the market value.
Check your most recent property tax bill or your county assessor's or tax collector's website, which usually lists each levy's mill rate. Add up all overlapping levies (county, city, school, and special districts) and divide the total mills by 1,000 to get the percentage. Alternatively, divide last year's total tax paid by your assessed value.
A mill rate is a way of expressing property tax rates: one mill equals $1 of tax per $1,000 of assessed value, or 0.1%. To convert mills to a percentage, divide by 1,000. For example, 18.5 mills equals 1.85%. A $525,000 home taxed at 18.5 mills owes $9,712.50 per year.
Yes, if you itemize deductions. State and local taxes (SALT), including property taxes, are deductible on Schedule A, subject to the federal SALT cap (currently $10,000 for most filers). Taxpayers who take the standard deduction do not separately deduct property taxes. Tax laws change, so confirm current limits with the IRS or a tax professional.
The two usual causes are a higher assessed value after a reassessment and a higher tax rate after voters or officials approve new levies or budgets. Even if the rate stays flat, rising home values push assessments up. Check your assessment notice for the new value and each levy's rate, and remember you generally have a limited window to appeal an assessment you believe is too high.
Claim every exemption you qualify for, such as homestead, senior, or veteran exemptions. Appeal your assessment if comparable homes are assessed lower or the assessor's records contain errors. Finally, pay on time to avoid penalties and interest, and review your bill each year because rates and assessments change annually.
Cite this page: “Property Tax Calculator.” Sigma Calculator, 8 Oct. 2026, https://sigmacalculator.net/financial-calculators/property-tax-calculator/.
Last updated: October 8, 2026