How to use the property tax calculator
- Enter your home's value: its market value, or the appraised value on your county's notice.
- Pick your state. The rate fills in with that state's approximate average effective rate.
- For a closer estimate, switch to mill rate and enter your local mill rate and assessment ratio from your tax bill or the county website.
- Enter any exemptions, such as a homestead exemption.
The same home in different states
A $350,000 home at each state's approximate average effective rate:
| State | Average rate | Tax per year |
|---|---|---|
| New Jersey | 2.23% | $7,805 |
| Illinois | 2.08% | $7,280 |
| Texas | 1.74% | $6,090 |
| New York | 1.72% | $6,020 |
| Florida | 0.89% | $3,115 |
| California | 0.75% | $2,625 |
| Colorado | 0.51% | $1,785 |
| Hawaii | 0.28% | $980 |
State averages come from Tax Foundation data published in 2025 and are statewide averages. Your property tax is set locally, by your county, city, school district and special districts, so two towns in the same state can differ by a factor of two.
How a property tax bill is worked out
- Assessed value. The assessor values your home. Some states tax the full market value; others tax a fixed percentage of it (the assessment ratio), or cap how fast the assessed value can grow.
- Exemptions. Homestead, senior, veteran or disability exemptions reduce the taxable value.
- Rate. Each local taxing body sets a rate, often in mills ($1 per $1,000). They add up to your total rate.
- Tax = (assessed value − exemptions) × rate.
Example: a $350,000 home assessed at 70% ($245,000), minus a $25,000 homestead exemption, leaves $220,000 taxable. At 25 mills, the tax is $5,500 a year, an effective rate of about 1.57%.
Property tax and your mortgage
Most lenders collect property tax monthly through an escrow account and pay the bill for you. That's why the monthly figure matters: on the Texas example, about $508 a month is added to your principal and interest. When you shop for a home, include it in your budget with how much house can I afford, which adds property tax, insurance and PMI to the payment.
At closing you'll usually prepay a few months of property tax into escrow; the closing costs calculator includes it.
Ways to lower your property tax
- Apply for every exemption you qualify for: homestead, senior, veteran, disability.
- Check your assessment each year. Errors in square footage or features are common.
- Appeal if similar homes nearby are assessed lower or sold for less.
- Know your state's caps. Some states limit yearly assessment increases for owner-occupied homes; those caps can reset when you buy.
For landlords and investors
Property tax is one of the biggest costs of a rental, and in many places it rises after a purchase because the home is reassessed at the sale price. Put the real number into the rental property calculator before you make an offer, and compare owning with renting using the rent vs buy calculator.
Keep track of the bill
RentRoll is a landlord dashboard that tracks property tax, insurance and repairs against rent for each property. Vault keeps a homeowner's escrow, bills and budget in one view, and Summit shows your home's value and equity in your net worth. Each has a free demo with sample data.
Estimates only. Your county assessor and tax collector set the actual values, rates and due dates.
Frequently asked questions
How is property tax calculated?
How much is property tax on a $350,000 house?
What is a mill rate?
What is a homestead exemption?
Which states have the highest and lowest property taxes?
Can I appeal my property tax assessment?
Written by
Finance Specialist & Editor, VaultlyApps
Emma Whitfield writes and edits the VaultlyApps money guides and free calculators. Her focus is US household finance — budgeting on a real paycheck, paying down credit card and student debt, emergency funds and savings goals, renting — and the money side of freelancing and small-business income, from pricing and profit margins to self-employment tax. Every guide is researched against primary sources such as IRS publications and the CFPB, every number is checked in our tested calculators, and tax content is reviewed each year when new IRS figures come out. Emma is not a licensed financial adviser or tax preparer; her work is general education, not personal advice.
Researched against primary US sources, checked against independent calculators and reviewed by a finance expert on our team. Written for US readers — general education, not financial, tax or legal advice. Editorial policy · Disclaimer
