Property Tax Calculator

Last updated July 2, 2026

Property taxes are a permanent, annual cost of homeownership that doesn't go away when the mortgage is paid off — and they're highly variable depending on where you live. Effective property tax rates in the United States range from about 0.3 percent of assessed value in Hawaii to over 2.2 percent in New Jersey and Illinois. The national average effective rate is approximately 1.1 percent. On a $400,000 home, that spread means annual property taxes ranging from $1,200 to $8,800 — a difference of over $600 per month that affects not just the total housing cost but also mortgage affordability, since lenders include taxes in their debt-to-income calculations.

Most counties assess property at market value or a fraction of it, then apply a millage rate set by local taxing authorities covering schools, municipal government, fire and emergency services, and other jurisdictions. Assessments are typically updated periodically, which means property taxes can rise meaningfully after a home purchase triggers a reassessment. Many states offer homestead exemptions — reductions in taxable value for primary residences — and additional exemptions for seniors, veterans, or lower-income homeowners. Understanding the local assessment process, knowing the millage rate, and checking whether exemptions apply is the only reliable way to estimate actual annual property taxes for a specific property. Online county assessor databases typically make this information publicly available.

Property taxes should be part of your monthly housing cost calculation from the start, not an afterthought. Look up the actual tax bill on any home you're seriously considering — the listing estimate and the real tax are often different — and factor the full annual amount into your affordability analysis.