Property Tax Calculator

How Property Tax Is Calculated

Property tax = assessed value × effective tax rate. The assessed value is often not the same as market value — it's the value your local tax assessor assigns, which may be a percentage of market value (the assessment ratio). If a county assesses at 80% of market value with a 1.5% rate, a $300,000 home has an assessed value of $240,000 and an annual tax of $3,600. Many jurisdictions also apply homestead exemptions that reduce the taxable assessed value by a fixed amount — a $25,000 homestead exemption on the same property reduces taxable value to $215,000 and annual taxes to $3,225.

How to Find Your Local Rate

Property tax rates are set by multiple overlapping taxing authorities — county, city or township, school district, special districts (fire, water, library). Your total effective rate is the sum of all these levies expressed per $1,000 of assessed value (millage rate). The most reliable source is your most recent property tax statement, which lists the effective rate paid. Your county assessor or tax collector website typically publishes current rates and allows address-based lookup. National averages range from 0.2% (Hawaii) to 2.5%+ (New Jersey, Illinois), making location the dominant factor in property tax burden.

Assessment Limits and Prop 13-Style Laws

Many states cap annual assessment increases for existing homeowners. California's Proposition 13 (1978) limits assessment increases to 2% per year regardless of market appreciation, with reassessment to market value only upon sale. This creates massive disparities between long-term owners (very low tax bills) and new buyers (taxed on current market value). Similar assessment caps exist in Florida (3% cap via the Save Our Homes Amendment), New York, and other states. If you're buying a property, ask for the current owner's tax bill — your taxes may be significantly higher due to reassessment at sale price.

Appealing Your Assessment

Property assessments are frequently incorrect — studies suggest 30–60% of properties are overassessed. You have the right to appeal in every US jurisdiction, typically within 30–90 days of receiving your assessment notice. Successful appeals require evidence: comparable sales (recent sales of similar properties in your neighbourhood at lower prices), an appraisal, or documentation of errors (wrong square footage, extra bedrooms listed that don't exist). The appeal process is usually handled by a local review board and costs nothing to file. If your appeal succeeds, you'll receive a refund for the current year and lower bills going forward.