Property Tax Calculator
Estimate your annual real estate taxes based on property value and local tax rates.
How Property Tax is Calculated
Property taxes are local taxes levied by municipal governments, counties, or school districts. The amount you pay is primarily determined by two factors: the assessed value of your property and the local tax rate (often called the mill rate).
The calculation follows this general formula:
(Market Value × Assessment Ratio) – Exemptions = Taxable Value
Taxable Value × (Mill Rate / 1,000) = Total Annual Property Tax
Understanding the Terms
Fair Market Value: This is the price a willing buyer would pay a willing seller for your home in a competitive market.
Assessment Ratio: Some jurisdictions only tax a percentage of the market value. For example, if your home is worth $200,000 but the assessment ratio is 80%, you are only taxed on $160,000.
Mill Rate: One "mill" is equal to $1 of tax for every $1,000 of assessed value. If your mill rate is 20, you pay $20 for every $1,000 your home is worth.
Exemptions: Many states offer property tax relief through "Homestead Exemptions" for primary residences, seniors, or disabled veterans. These amounts are subtracted from the assessed value before the tax is calculated.
Example Calculation
Imagine a home with a market value of $350,000 in a town with a 100% assessment ratio and a mill rate of 15. The homeowner also qualifies for a $25,000 homestead exemption.
- Assessed Value: $350,000 × 1.00 = $350,000
- Taxable Value: $350,000 – $25,000 = $325,000
- Annual Tax: ($325,000 / 1,000) × 15 = $4,875
Why Property Taxes Change
Your property tax bill can increase even if your local government doesn't raise the tax rate. This usually happens if your local property values rise (reassessment) or if a specific "bond" for a school or infrastructure project is passed by voters. Conversely, if market values in your area drop, you may be able to appeal your assessment to lower your bill.