Property Tax Calculator

First find the assessed value: Market Value x (Assessment Ratio / 100). Some states assess at 100% of market value (e.g. Texas); others use a fractional ratio (e.g. 40% or 80%). Then subtract any exemptions to get the taxable value, and multiply by the mill rate divided by 1,000 (or the tax rate as a percentage). For example, a $300,000 home assessed at 80% ($240,000), with a $25,000 exemption ($215,000 taxable) and a 20-mill rate, owes $215,000 x 0.020 = $4,300.

A mill is one-thousandth of a dollar, so a mill rate of 20 means $20 of tax per $1,000 of taxable value. Because 1 mill equals 0.1% of taxable value, 10 mills equals 1%. You can convert between the two by dividing mills by 10 to get a percent, or multiplying a percent by 10 to get mills — both modes in this calculator produce the same result for equivalent rates.

Market value is what the property would sell for on the open market (the appraised value). Assessed value is the value your local tax authority actually uses to calculate tax, and is usually a percentage of market value called the assessment ratio. Some states (like Texas) assess at 100% of market value; others use a lower ratio set by law or by the county assessor, and it's the assessed value — not market value — that the mill rate is applied to.

An exemption reduces the assessed value before the tax rate is applied, lowering your taxable value and therefore your bill. A common example is a homestead exemption for an owner-occupied primary residence, but many jurisdictions also offer exemptions for seniors, veterans, and people with disabilities. Enter the total dollar amount of exemptions you qualify for; the calculator subtracts it from the assessed value (floored at zero) before applying the rate.

The mill rate you pay is typically the sum of separate levies from every overlapping taxing authority — county government, city or township, school district, and any special districts (fire, water, library, etc.) — each of which sets its own rate annually based on its budget needs. That's why two homes of identical value in neighboring towns can owe very different amounts; you should use the combined total mill rate for your specific address.

This calculator gives an ESTIMATE based on the values you enter — it cannot look up your county's actual assessment ratio, exemptions, or mill rate for you. Actual bills may also include special assessments, tax caps (such as California's Proposition 13, which limits annual assessed-value growth), early-payment discounts, or late penalties that aren't modeled here. Check your county assessor's or treasurer's website for your official figures.

Reassessment schedules vary by state and county — some reassess annually, others every 2-5 years, and a few only reassess on sale or major renovation. Market value and, in some places, the assessment ratio itself, can change at each reassessment cycle, which is why last year's tax bill may not match this year's estimate even with the same rate.

Not necessarily. Property tax is a function of both the assessed (taxable) value and the mill rate, and many taxing authorities adjust their rate each year to hit a target revenue amount — so a broad rise in assessed values across a county can be offset by a lower mill rate, keeping individual bills relatively stable. Always check the current year's rate rather than assuming it's unchanged.

The mill-rate/assessed-value model is specific to how most U.S. states and counties compute real property tax. Other countries use different systems entirely — for example the UK's Council Tax bands or India's municipal Annual Rental Value (ARV), capital-value, or unit-area methods — none of which map onto a market-value x assessment-ratio x mill-rate formula. This calculator is designed for the U.S. property tax model.

The mill rate (or its percent equivalent) is applied to your TAXABLE value (after exemptions), while the effective rate this calculator shows is your total annual tax divided by your raw MARKET value. Because exemptions and a fractional assessment ratio both shrink the taxable base relative to market value, the effective rate is often noticeably lower than the mill rate itself — useful for comparing your real tax burden across different properties or locations.

Divide the annual property tax amount from this calculator by 12. Most mortgage lenders collect this monthly amount into an escrow account alongside your principal and interest payment, then pay the county on your behalf when the bill is due (often once or twice a year).

The taxable value is floored at zero — you can't have a negative tax base. If your exemptions exceed your assessed value (for example, a very small assessed value combined with a large veteran or disability exemption), your estimated property tax comes out to $0.

Not automatically — it depends on your loan. Many mortgage lenders require an escrow account that bundles property tax (and often homeowners insurance) into your monthly payment, then pay the county on your behalf when the bill is due. Some borrowers, particularly those with a large down payment or no escrow requirement, pay their county directly instead. Check your loan documents or ask your servicer whether escrow is set up for your mortgage.

Unpaid property tax typically accrues interest and penalties set by your county, and after a period of continued non-payment the taxing authority can place a lien on the property or, in some jurisdictions, ultimately initiate a tax sale or foreclosure to recover the debt. The exact timeline, penalty rates and process vary by state and county, so check your local tax assessor's or treasurer's office for your jurisdiction's specific rules.