Property Tax Estimator
Estimate your annual property tax based on market value and local tax rates.
How Property Tax is Calculated
Property tax is a primary source of revenue for local governments, used to fund public services such as schools, road maintenance, and emergency services. Understanding how your bill is calculated can help you budget for homeownership or appeal an unfair assessment.
The Three Main Factors
To use this property tax calculator effectively, you need to understand three key figures:
- Fair Market Value: The estimated price your home would sell for in the current real estate market.
- Assessment Ratio: The percentage of the market value that the local government considers "taxable." While some jurisdictions tax 100% of the value, others may only tax 60% or 80%.
- Mill Rate: One "mill" represents $1 of tax for every $1,000 of assessed value. For example, a mill rate of 20 means you pay $20 for every $1,000 your home is worth.
The Property Tax Formula
The standard formula used by most tax assessors is:
A Realistic Calculation Example
Let's say you own a home with a fair market value of $350,000. Your local municipality uses an assessment ratio of 90% and has a mill rate of 18.
- Find Assessed Value: $350,000 × 0.90 = $315,000.
- Divide by 1,000: $315,000 ÷ 1,000 = 315.
- Multiply by Mill Rate: 315 × 18 = $5,670 per year.
Why Do Property Taxes Change?
Property taxes are not static. Your bill might increase if your home's market value rises significantly, if the local government raises the mill rate to cover budget shortfalls, or if you lose eligibility for certain exemptions (like a homestead exemption or senior discount).
How to Lower Your Property Tax Bill
If you believe your tax assessment is too high, you can often file an appeal with your local board of equalization. Most appeals are based on "comparables"—showing that similar homes in your area are assessed at a lower value. Additionally, check for local exemptions that may reduce your taxable amount, such as veteran credits or disability exemptions.