Property Tax Calculator
Property taxes add hundreds of dollars to your monthly housing cost. Estimate your bill by state and see how it changes with home value, then include it in your full mortgage payment.
1 Property Details
Annual Property Tax
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Enter home value and state above
Monthly Tax
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Effective Rate
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% of Income
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At $80k income
Tax by Home Value
| Scenario | Home Value | Annual Tax | Monthly |
|---|---|---|---|
| Select a state above | |||
State Tax Comparison
At your current home value
How Property Taxes Work in the US
Property taxes are levied by local governments (counties and municipalities) and are a major source of funding for public schools, emergency services, and infrastructure. The tax is calculated as a percentage of your home's assessed value — which may differ from market value.
Tax rates vary enormously by location. States like New Jersey (avg ~2.5%) and Texas (~1.7%) have high effective rates, while Hawaii (~0.3%) and Alabama (~0.4%) have some of the lowest. Even within a state, rates vary by county.
Property Tax and Your Mortgage
If you have a mortgage, your lender typically requires you to pay property taxes through an escrow account — 1/12 of the annual bill is collected each month alongside your principal and interest. This is the "T" in PITI (Principal, Interest, Taxes, Insurance).
Use the Mortgage Calculator to see your full PITI payment with property tax included, or the Affordability Calculator to factor tax into your maximum home price.
Frequently Asked Questions
How is property tax calculated?
Property tax is the assessed value of your home multiplied by the local tax rate (often expressed as a mill rate: $1 per $1,000 of value). Assessed value can differ from market value, and exemptions such as a homestead exemption reduce the taxable amount.
Which states have the highest and lowest property taxes?
Effective rates range from under 0.5% of home value in Hawaii and Alabama to over 2% in New Jersey and Illinois. See our property tax by state table for all 50 states.
Is property tax included in my mortgage payment?
Usually. Most lenders collect one-twelfth of the annual tax each month into an escrow account and pay the bill for you. That is why mortgage payments can change even on a fixed-rate loan.
Can I lower my property tax bill?
Apply for any homestead, senior, veteran or disability exemptions you qualify for, and appeal the assessment if it is above what comparable homes sold for. Appeal deadlines are short, often 30–60 days after the assessment notice.