Property Tax Calculator

How property tax is calculated

Assessed value = market value × assessment ratio − exemptions Property tax = assessed value × tax rate

Rates are often quoted in mills, where 1 mill is $1 of tax per $1,000 of assessed value. To convert mills to a percent, divide by 10.

Worked example

A $300,000 home assessed at 100% with no exemptions and a 1.2% rate pays 300,000 × 0.012 = $3,600 a year, or $300 a month. A rate of 25 mills would be 2.5%, or $7,500 a year.

Rates, assessment ratios and exemptions vary by state, county and city. Check your local assessor’s website for exact figures.

Frequently asked questions

What is a mill rate?

One mill equals one tenth of a cent, or $1 of tax for every $1,000 of assessed value.

Is property tax included in my mortgage payment?

Often, yes. Many lenders collect it monthly in an escrow account and pay the bill for you.

What is a homestead exemption?

A reduction in taxable value for a primary residence offered by many states and counties.

Why is my assessed value different from market value?

Some areas tax only a percentage of market value, and assessments may lag behind current prices.