Estimate Your Annual Property Tax
Calculate property taxes by home value, assessment ratio, and local tax rate. See monthly escrow amount.
How Property Tax Is Calculated
Property tax = Assessed Value × Tax Rate. The assessed value is your home market value multiplied by the assessment ratio (which varies by jurisdiction — some assess at 100% of market value, others at 50-80%). The tax rate is set by local government and expressed as mills (per $1,000) or dollars per $100 of assessed value.
Property Tax by State
Highest property tax states: New Jersey (2.23% effective rate), Illinois (2.08%), Texas (1.80%), Connecticut (1.79%). Lowest: Hawaii (0.27%), Alabama (0.40%), Louisiana (0.51%), Wyoming (0.55%). A $400,000 home costs $8,920/year in NJ vs $1,080/year in Hawaii — a $7,840 annual difference.
Property tax appeals have a surprisingly high success rate — 30-40% of homeowners who appeal get a reduction. The key: gather 3-5 comparable sales (similar homes nearby that sold for less) and present them at your hearing. Many counties allow informal appeals by phone or email before requiring a formal hearing.
