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Finance Calc Kit
Real estate

Property Tax Calculator

Calculate your annual property tax liability based on property market value, assessment ratio, and local tax rates.

Property details

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Estimated annual property tax

$2,700.00

Tax breakdown

Assessed value$250,000.00
Taxable value$225,000.00
Annual property tax$2,700.00
Monthly property tax$225.00

Step-by-step calculation

Open to see how assessed value, exemptions, and tax rates combine.

  1. Calculate assessed value

    Assessed Value=Market Value×Assessment Ratio100\text{Assessed Value} = \text{Market Value} \times \frac{\text{Assessment Ratio}}{100}

    $250,000.00 x 100% = $250,000.00

  2. Apply exemptions

    Taxable Value=max⁡(0,Assessed Value−Exemptions)\text{Taxable Value} = \max(0, \text{Assessed Value} - \text{Exemptions})

    $250,000.00 - $25,000.00 = $225,000.00

  3. Calculate annual tax

    Annual Tax=Taxable Value×Rate100\text{Annual Tax} = \text{Taxable Value} \times \frac{\text{Rate}}{100}

    225000 \times \frac{1.2}{100} = $2,700.00

  4. Monthly tax payment

    Monthly Tax=Annual Tax12\text{Monthly Tax} = \frac{\text{Annual Tax}}{12}

    $2,700.00 / 12 = $225.00 per month

Report tool

How the property tax calculator works

Property tax is a local levy on real estate, usually based on assessed value rather than full market price. This calculator estimates your annual and monthly property tax from market value, assessment ratio, exemptions, and either a percentage rate or millage rate. All math runs in your browser.

Property taxes are a major part of homeownership costs. When budgeting a mortgage payment, combine this estimate with principal and interest using the mortgage calculator with taxes and insurance. For a basic payment without escrow, try the mortgage calculator. To see how loan principal declines over time, open the amortization calculator. Property taxes also affect your overall financial picture, which you can track with the net worth calculator.

Property tax formulas

Most jurisdictions start with assessed value, then subtract exemptions before applying the tax rate:

Assessed Value=Market Value×Assessment Ratio100\text{Assessed Value} = \text{Market Value} \times \frac{\text{Assessment Ratio}}{100}
Taxable Value=max⁡(0,Assessed Value−Exemptions)\text{Taxable Value} = \max(0, \text{Assessed Value} - \text{Exemptions})

Annual tax uses either a percentage rate or millage (mills per $1,000 of taxable value):

Annual Tax=Taxable Value×Rate100orTaxable Value×Mills1000\text{Annual Tax} = \text{Taxable Value} \times \frac{\text{Rate}}{100} \quad \text{or} \quad \text{Taxable Value} \times \frac{\text{Mills}}{1000}
Monthly Tax=Annual Tax12\text{Monthly Tax} = \frac{\text{Annual Tax}}{12}

Worked example: $250,000 home, 1.2% rate, $25,000 exemption

Consider a home with a $250,000 market value, 100% assessment ratio, 1.2% tax rate, and a $25,000 homestead exemption:

  1. Assessed value: $250,000 x 100% = $250,000
  2. Taxable value: $250,000 - $25,000 = $225,000
  3. Annual tax: $225,000 x 1.2% = $2,700
  4. Monthly tax: $2,700 / 12 = $225.00

State presets in the calculator show average effective rates for reference. Your actual bill depends on county, city, school district, and special assessments. Pair this estimate with the mortgage calculator with taxes and insurance for a full monthly housing payment.

Percentage rate vs millage rate

Some areas quote tax as a percentage of taxable value (for example 1.2%). Others use millage, where each mill equals $1 of tax per $1,000 of assessed value. Twelve mills equals 1.2%. Switch the tax rate unit in the calculator to match how your county publishes rates.

Frequently asked questions

How is property tax calculated?
Assessed value equals market value times the assessment ratio. Taxable value subtracts exemptions from assessed value. Annual tax applies the local rate (percentage or millage) to taxable value. Monthly tax divides annual tax by 12.
What is an assessment ratio?
The assessment ratio is the percentage of market value that a jurisdiction uses for taxation. A 100% ratio means the full market value is assessed. Some states assess at 80% or another fraction of market value.
What are homestead exemptions?
Homestead exemptions reduce taxable value for owner-occupied primary residences. Amounts vary widely by state and county. Enter your local exemption to get a closer estimate.
Are state presets exact for my county?
No. Presets show statewide average effective rates for quick comparison. Your actual rate depends on local levies, school districts, and special assessments. Check your county assessor for exact figures.
How do property taxes fit into my mortgage payment?
Lenders often collect property taxes through escrow as part of your monthly payment. Use the mortgage calculator with taxes and insurance to see principal, interest, taxes, and insurance together.
Are the results stored?
No. All math runs in your browser. Changing fields updates the page URL so you can copy and share your inputs.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.