Property Tax Calculator
Estimate your yearly and monthly property taxes based on the assessed property value and the local property tax rate.
Calculation Results
The estimated total property tax owed per year.
The monthly escrow amount required to cover the annual tax bill.
How This Calculator Works
To estimate your property taxes:
- Enter the assessed value of the property (note: this is sometimes lower than the market price depending on local laws).
- Enter the local tax rate (often expressed as a percentage or in mills).
The calculator immediately outputs both the annual tax bill and the monthly equivalent (which is typically added to your mortgage escrow payment).
Formula & Calculations
The annual property tax is computed by multiplying the assessed property value by the tax rate percentage:
Annual Property Tax = Assessed Property Value × (Tax Rate Percentage / 100)
The monthly tax amount is simply the annual tax divided by 12 months:
Monthly Property Tax = Annual Property Tax / 12
Step-by-Step Calculation Examples
Typical suburban home
Calculating taxes for a $350,000 home in a county with a 1.1% average property tax rate.
- property_value: 350000
- tax_rate: 1.1
- annual_property_tax: $3,850.00
- monthly_property_tax: $320.83
Frequently Asked Questions
What is the difference between assessed value and market value?
Market value is what a buyer is willing to pay for your home on the open market. Assessed value is the dollar value assigned to a property by a public tax assessor to calculate property taxes. Assessed value is often lower than market value.
What is a millage rate?
Some local governments express property tax rates in "mills" rather than percentages. One mill is equal to $1 of tax per $1,000 of assessed value. To convert a millage rate to a percentage, divide by 10 (e.g., 20 mills = 2.0%).
How are property taxes paid?
Most homeowners pay property taxes as part of their monthly mortgage payment. The lender keeps these funds in an "escrow account" and pays the tax bill directly to the municipality when it is due.