Use this property tax calculator to estimate annual tax from assessed value and a rate in percent or mills, plus your effective tax rate and monthly escrow.
Property Tax Formula
This simple annual estimate multiplies taxable assessed value by a rate on that same base. Use the taxable value after applicable granted exemptions and assessment adjustments. With a rate expressed as a percent:
T = A * r / 100
With a rate expressed in mills, where one mill is $1 of tax per $1,000 of assessed value:
T = A * m / 1000
Market value times an assessment ratio gives a simplified assessment estimate; it does not automatically apply exemptions, caps or separate district bases. The inverse mode uses your selected value basis, and escrow mode estimates a monthly tax/insurance average:
A = MV * AR / 100 r = T / V * 100 E = (T + I) / 12
Variables:
- T is the annual property tax
- A is taxable assessed value after applicable value exemptions and assessment adjustments
- r is the tax rate in percent, and m is the same rate in mills (10 mills = 1%)
- MV is the market value and AR is the assessment ratio percent
- V is market value for an effective rate, or taxable assessed value for a rate on assessment
- E is the monthly escrow amount and I is annual homeowners insurance
Pick a mode at the top of the calculator. “Annual property tax” takes an assessed value — or a market value plus your area’s assessment ratio — and a rate entered in either percent or mills, and returns a modeled annual tax with its monthly equivalent and the rate converted both ways. “Effective tax rate” divides the tax you actually pay by your home’s value, which is the cleanest way to compare tax burdens between towns or states. “Monthly escrow amount” spreads the annual tax, plus optional homeowners insurance, across 12 payments the way a lender’s escrow account does.
Annual Property Tax on a $350,000 Home
This table uses illustrative rates on a common taxable assessed value of $350,000. The mills column expresses the same rate on that same base; these are not current local rates or state averages.
| Illustrative rate | Mills | Annual tax | Monthly |
|---|---|---|---|
| 0.4% | 4 | $1,400 | $116.67 |
| 0.6% | 6 | $2,100 | $175.00 |
| 0.8% | 8 | $2,800 | $233.33 |
| 1.0% | 10 | $3,500 | $291.67 |
| 1.2% | 12 | $4,200 | $350.00 |
| 1.5% | 15 | $5,250 | $437.50 |
| 1.8% | 18 | $6,300 | $525.00 |
| 2.1% | 21 | $7,350 | $612.50 |
| 2.4% | 24 | $8,400 | $700.00 |
Example Problems
Example 1: Find the annual tax from market value and a millage rate.
Your home has a market value of $400,000, your county assesses at 70% of market value, and the total millage is 18 mills. First find the assessed value, then apply the rate:
A = 400,000 * 70 / 100 = $280,000.00. T = 280,000 * 18 / 1000 = $5,040.00 per year, which is $420.00 per month. The calculator also shows that 18 mills equals a 1.8% rate.
Example 2: Find the monthly escrow amount.
Your annual property tax is $4,200 and your homeowners insurance is $1,800 per year. Add them and divide by 12:
E = (4,200 + 1,800) / 12 = 6,000 / 12 = $500.00 per month, made up of $350.00 for property tax and $150.00 for insurance.
Frequently Asked Questions
What is a mill in property tax?
A mill is one-tenth of a percent: $1 of tax for every $1,000 of assessed value. A total millage of 18 mills therefore equals a 1.8% nominal tax rate. Separate millages can be combined in this single-base model only when they apply to the same taxable assessment. Some districts use different taxable bases and must be calculated separately.
Why is my assessed value lower than my home’s market value?
Many jurisdictions tax only a fraction of market value, called the assessment ratio, and some also apply exemptions such as a homestead exemption or caps that limit how fast assessed value can grow. That is why a home worth $400,000 might carry an assessed value of $280,000 or less. Because of this gap, the effective rate you pay on market value is usually lower than the nominal millage suggests.
Is property tax included in my mortgage payment?
Usually, yes. Most lenders collect one-twelfth of your expected annual tax and homeowners insurance with each mortgage payment and hold it in an escrow account, then pay the bills for you when they come due. For federally related mortgage loans covered by RESPA, limits apply and a reserve of up to two months of estimated disbursements may be allowed. Actual collections can differ from this simple average because of timing, permitted reserves, shortages and the loan terms.
