Estimate your annual and monthly property tax from your home's assessed value and local tax rate, including any homestead or other exemptions.
How property tax is calculated
Local governments, school districts and other taxing bodies fund themselves largely through property tax. Your bill is based on two numbers:
- Assessed value: the value your local assessor puts on your property. In some places it is a percentage of market value.
- Tax rate: often called the millage or mill rate. One mill is $1 of tax per $1,000 of assessed value, so 11 mills equals 1.1%.
Property tax = (Assessed value − exemptions) × tax rate
Worked example
A home is assessed at $300,000 with a combined rate of 1.1% (11 mills). The annual tax is $300,000 × 1.1% = $3,300, or $275 a month.
With a $25,000 homestead exemption, taxable value falls to $275,000 and the tax to $3,025 a year, about $252 a month, a saving of $275 a year.
Where to find your numbers
- Your county assessor or tax collector website usually lists assessed values and rates by address.
- Your last tax bill shows the rates for each taxing body and any exemptions applied.
- When buying, ask for the current owner's tax bill, but remember your assessment may change after the sale in some states.
Ways to lower your property tax
- Apply for exemptions you qualify for, such as homestead, senior, disability or veteran exemptions. Many are not automatic.
- Check your assessment for errors in square footage, bedrooms or lot size.
- Appeal if similar homes nearby are assessed lower. Deadlines are usually short, so act quickly after you receive your notice.
Frequently asked questions
Is property tax included in my mortgage payment?
Often, yes. Many lenders collect it monthly into an escrow account and pay the bill for you. See it in the mortgage calculator.
Why did my property tax go up when rates did not change?
Your assessed value probably increased. Some states cap how fast assessments can rise each year for owner-occupied homes.
Related tools
Results are estimates for planning and education only. They are not financial, tax, legal or medical advice. Check important numbers with a qualified professional.