Property tax calculator

How property tax is calculated

Local governments, not the states, send almost all property tax bills. The formula behind a bill has four parts, and the calculator's "My county's numbers" mode follows it line by line.

1. 1

   The assessor sets a value

   The county or town assessor estimates what the home is worth on a set date, usually from recent sales of similar homes.

2. 2

   An assessment ratio may apply

   Many states tax 100% of that value. Others tax a fixed share of it, so a $400,000 home assessed at 50% has an assessed value of $200,000.

3. 3

   Exemptions come off

   A homestead exemption for the home you live in, plus any for seniors, veterans or people with disabilities, lowers the taxable value.

4. 4

   Each local body applies its rate

   County, city, schools and special districts each set a rate, often in mills (dollars per $1,000 of taxable value). Add them up and multiply.

Worked example with the starting values. In "State average" mode the calculator multiplies the market value by the state's effective rate. At the U.S. rate, $400,000 × 0.94% = $3,760 a year, or $313 a month. Switch to "My county's numbers" and the default is a home assessed at 100%, with no exemption and a 1.2% total rate: $400,000 × 1.2% = $4,800. Add a $50,000 homestead exemption and the bill drops to ($400,000 − $50,000) × 1.2% = $4,200. The same rate written in mills is 12 mills.

What an "effective rate" means

The effective rate is the tax actually paid divided by the home's market value. It is the fairest way to compare places, because it smooths over the different assessment ratios, exemptions and caps each state uses. The Tax Foundation computes it from the Census Bureau's American Community Survey: the total property tax owners report paying, divided by the total value of owner-occupied homes. The latest table, published in March 2026, covers 2020 to 2024.

Two things to keep in mind. The rate is a statewide average, and rates inside one state can vary several-fold between counties and even between school districts. And a low rate does not always mean a low bill. Hawaii has the lowest rate in the country, 0.29%, but its median home is worth $839,100, so the median tax paid there ($2,239) is almost three times Alabama's ($788) at a 0.37% rate.

Property tax rates by state

Effective rate is property tax paid as a share of owner-occupied home value. Median home value and median tax paid are for owner-occupied homes. All figures are 2020–2024 averages from the Census Bureau survey. Tap a state to load it.

U.S. figure, computed the same way from the same survey: 0.94% effective rate, $332,700 median home value, $3,119 median tax.

Assessed value vs. market value

Your notice may show two or three numbers: a market (or appraised) value, an assessed value and a taxable value. Market value is the assessor's estimate of the sale price on the valuation date. Assessed value is that figure times your state's assessment ratio, and taxable value is what's left after exemptions.

Some states also cap how fast the taxable value of a home can rise. California's Proposition 13 limits the yearly increase to 2% until the home sells, and Florida's Save Our Homes limit holds a homestead's increase to 3% or the inflation rate, whichever is lower. That's why two identical homes on one street can owe very different taxes, and why a buyer's first bill is often higher than the seller's: the value resets at sale. When you buy, budget from the price you pay, not the current owner's bill.

Homestead exemptions and other relief

Most states offer some break on the home you live in. Amounts and rules vary a lot, and you usually have to apply once with the county appraisal district or assessor. A few examples:

• Texas: school districts must exempt $140,000 of a homestead's value, plus $60,000 more for owners 65 or older or disabled. Voters approved these amounts in November 2025. Cities and counties may add their own.
• Florida: $25,000 off all property taxes, plus up to $25,000 more on value between $50,000 and $75,000 for non-school taxes. A larger exemption for non-school taxes is on the November 3, 2026 ballot.
• California: a $7,000 reduction in taxable value, worth roughly $70 to $80 a year at the state's 1% base rate plus local add-ons. File by February 15 for the full year.
• Other relief: many states offer freezes or credits for seniors, exemptions for veterans and people with disabilities, and "circuit breaker" credits that cap tax as a share of income.

How to appeal your assessment

If your assessed value is higher than what the home would sell for, you can challenge it. The process is local, but it usually goes like this:

1. Check the record first. Look up your property card. Wrong square footage, an extra bathroom or a finished basement you don't have are common errors and the easiest fixes.
2. Watch the deadline. Windows are short. In Texas it's May 15 or 30 days after the appraisal notice, whichever is later.
3. Gather evidence. Recent sales of similar nearby homes are the strongest proof. Photos and repair estimates for damage help too. Saying your tax is too high is not evidence; the board looks at value, not your budget.
4. Try the informal review. Many assessors settle with a short meeting before a formal hearing.
5. Go to the board. If that fails, a review board hears the case. Most states allow a further appeal to a state board or court.

You can do this yourself. Firms that appeal for you often charge a share of the first year's savings, so read the contract.

Budgeting tips

• Plan on escrow. Most mortgage lenders collect one-twelfth of the yearly tax with each payment and pay the bill for you. The monthly figure above is that share.
• Expect a catch-up after you buy. If the purchase triggers a reassessment, a supplemental bill or an escrow shortage can show up in the first year.
• Don't forget new exemptions. Exemptions don't follow the house. Apply as soon as you move in.
• Bills tend to rise. Even with caps, rates and values change every year. Leave some room in the budget.

Sources and assumptions

• Effective rates by state: Tax Foundation, Property Taxes by State and County, 2026 (published March 16, 2026), table "Property Taxes Paid as a Percentage of Owner-Occupied Housing Value, 2024". It is built on the U.S. Census Bureau's American Community Survey 2020–2024 5-year estimates, tables B25090 (aggregate real estate taxes paid) and B25082 (aggregate value of owner-occupied homes). We recomputed all 51 rates from the Census files and they match.
• Median home value and median tax by state: U.S. Census Bureau, ACS 2020–2024 5-year summary file, tables B25077 and B25103. The U.S. average rate of 0.94% is our calculation from the same tables; the Tax Foundation does not publish a U.S. figure.
• Texas exemptions and appeal deadline: Texas Comptroller, Property Tax Exemptions and Property Tax Protests and Appeals.
• Florida exemption: Florida Statutes section 196.031 (2026). The second $25,000 is adjusted for inflation each year.
• California exemption: California State Board of Equalization, Homeowners' Exemption.
• Homestead programs in every state: Lincoln Institute of Land Policy, Significant Features of the Property Tax.
• The state-average mode applies one statewide effective rate to the value you enter. It does not know your county, school district, caps or exemptions, so your bill can be well above or below it. The local mode charges one combined rate on taxable value; special assessments and flat fees on some bills are not included. Checked October 29, 2026.

Common questions