Property Tax Calculator
Estimate your annual real estate taxes based on assessed value and local tax rates.
Percentage (%)
Mill Rate (per $1,000)
Please enter valid numeric values for market value and tax rate.
Assessed Value:
$0.00
Taxable Value:
$0.00
Annual Property Tax:
$0.00
Monthly Tax Payment:
$0.00
Understanding How Property Taxes Are Calculated
Property taxes are a primary source of revenue for local governments, used to fund essential services such as public schools, road maintenance, fire departments, and police services. Calculating your property tax involves three main components: the market value of your home, the assessment ratio, and the local tax rate (often called a mill rate).
The Property Tax Formula
To calculate your annual tax liability manually, use the following logic:
- Step 1: Determine Assessed Value. This is the Market Value × Assessment Ratio. For example, if your home is worth $300,000 and the ratio is 80%, the assessed value is $240,000.
- Step 2: Subtract Exemptions. Many jurisdictions offer homestead exemptions for primary residences or seniors. Subtract these from the assessed value to find the Taxable Value.
- Step 3: Apply Tax Rate. If using a percentage, multiply the taxable value by the percentage. If using a Mill Rate, divide the Mill Rate by 1,000 and multiply by the taxable value.
What is a Mill Rate?
A "mill" represents one-tenth of a cent, or $1 for every $1,000 of assessed value. If your town has a mill rate of 25, you pay $25 in taxes for every $1,000 your property is worth (after assessments). Our calculator handles this conversion automatically when you select "Mill Rate" from the dropdown menu.
Realistic Calculation Example
Imagine a property with the following characteristics:
- Market Value: $500,000
- Assessment Ratio: 90% (Assessed Value = $450,000)
- Exemption: $50,000 (Taxable Value = $400,000)
- Mill Rate: 15 (0.015 as decimal)
- Annual Tax: $400,000 × 0.015 = $6,000 per year.
In this scenario, the homeowner would need to budget approximately $500 per month for their property tax escrow account.