$350,000
$350,000
$8,750.00
$729.17
2.500%
$350,000
$350,000
$8,750.00
$729.17
2.500%
The Real Estate Tax Calculator (Property Tax Calculator) estimates your annual property tax based on your property's assessed value, the local mill rate, and any applicable exemptions. Property taxes are the primary funding source for local governments, schools, fire departments, and other community services across the United States.
Property tax is calculated using three key factors: the assessed value (determined by your county assessor), the assessment ratio (the percentage of market value used for taxation), and the mill rate or tax rate. A mill is one-tenth of a cent, so a mill rate of 25 means $25 in tax per $1,000 of assessed value, or 2.5%.
Across the U.S., property tax rates vary dramatically. New Jersey has the highest effective rate at about 2.23%, while Hawaii has the lowest at 0.29%. The national median effective rate is approximately 1.1%. On a $350,000 home, this translates to annual taxes ranging from about $1,015 (Hawaii) to $7,805 (New Jersey).
Many jurisdictions offer exemptions that reduce taxable value. The most common is the homestead exemption, which reduces the assessed value of your primary residence — ranging from $25,000 to $50,000 in most states. Additional exemptions may be available for seniors, veterans, disabled individuals, and agricultural property.
Property taxes are typically paid annually or semi-annually, though most mortgage holders pay monthly through an escrow account. The lender collects 1/12 of the estimated annual tax each month and makes the payments on your behalf. This calculator shows both annual and monthly amounts for budgeting purposes.
Understanding your property tax is crucial for homebuying decisions, as it significantly affects monthly housing costs. A $350,000 home with a 2.5% tax rate costs $729/month in property tax alone — potentially more than the principal portion of the mortgage payment.
The formula: Annual Tax = (Property Value × Assessment Ratio - Exemptions) × Mill Rate / 1000 + Special Assessments. The assessment ratio (typically 80-100%) determines what percentage of market value is taxable. The mill rate is set by local government and expressed per $1,000 of assessed value. Special assessments cover specific improvements (road, sewer, sidewalk).
Your effective tax rate is the annual tax as a percentage of full property value — this allows comparison across jurisdictions with different assessment ratios and mill rates. If your effective rate is above 2%, you're in a high-tax area. Below 1% indicates a low-tax jurisdiction.
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A $350k home with 25 mill rate and $25k homestead exemption.
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A $400k home in a state with 80% assessment ratio and low 10 mill rate.
A mill is one-tenth of a cent ($0.001). A mill rate of 25 means $25 in tax per $1,000 of assessed value, equivalent to a 2.5% tax rate.
County assessors estimate property value based on recent comparable sales, property characteristics, and market conditions. Reassessments occur periodically (every 1-5 years depending on jurisdiction).
A reduction in the assessed value of your primary residence for property tax purposes. For example, a $25,000 homestead exemption on a $300,000 home means taxes are calculated on $275,000.
Yes. If you believe your assessment is too high, you can file an appeal with your county assessor or board of equalization. Provide evidence such as recent comparable sales, property condition issues, or assessment errors.
New Jersey has the highest effective rate at about 2.23%, followed by Illinois (2.08%) and Connecticut (2.00%). On a median-value home, New Jersey property taxes average about $9,500/year.
Hawaii has the lowest effective rate at about 0.29%, followed by Alabama (0.40%) and Colorado (0.51%). However, low property taxes often correlate with higher income or sales taxes.
Yes, property taxes are deductible as an itemized deduction on federal returns, but subject to the $10,000 SALT (State and Local Tax) cap imposed by the TCJA in 2018.
An additional charge for specific local improvements benefiting your property, such as new sidewalks, sewer lines, or road paving. These are separate from regular property taxes.
Property taxes are a significant monthly cost. A 2.5% rate on a $300,000 home adds $625/month to housing costs. Lenders include estimated property taxes when calculating whether you qualify for a mortgage.
Generally yes, as property values and local government budgets grow. Some states cap annual increases (California's Prop 13 limits increases to 2%/year until sale). Reassessments can cause sudden jumps.
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