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
Annual property tax is the assessed value of the home multiplied by the tax rate. 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
If you only know the market value, the assessed value comes from the assessment ratio. The calculator can also work backward to an effective rate, or forward to a monthly escrow amount:
A = MV * AR / 100 r = T / V * 100 E = (T + I) / 12
Variables:
- T is the annual property tax
- A is the assessed (taxable) value
- 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 the home value used to compute an effective rate
- 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 the yearly bill 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 shows the annual and monthly property tax on a $350,000 home across the range of effective rates seen in the US. Average effective rates by state run from roughly 0.3% in Hawaii to about 2.2% in New Jersey, so most homeowners fall somewhere inside this table.
| Effective 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. Millage is the standard way counties, school districts, and cities express their levies, and your bill usually sums several separate millages into one total rate.
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. Federal rules let the servicer keep a cushion of up to two months of escrow payments, so your actual escrow line can be slightly higher than the simple monthly average.
