How is property tax calculated?

Property tax = assessed value × mill rate (expressed as %). Assessed value is your county's valuation of the property, which may be less than market value depending on state rules. The mill rate is set by your county, city, and school district. On a $300,000 home at 1.5%, annual tax = $4,500.

What is the difference between assessed value and market value?

Market value is what your home would sell for. Assessed value is what your county uses to calculate taxes — often 80–100% of market value, but some states assess at much lower percentages (e.g., Mississippi at 10%). The effective tax rate accounts for this ratio, making it the most accurate comparison metric.

Which states have the lowest property taxes?

The five lowest effective property tax states are Hawaii (0.32%), Alabama (0.41%), Colorado (0.51%), Louisiana (0.56%), and Delaware (0.57%). These states either have low mill rates, generous exemptions, or both.

Which states have the highest property taxes?

The five highest effective property tax states are New Jersey (2.23%), Illinois (2.08%), Vermont (1.83%), New Hampshire (1.93%), and Connecticut (1.79%). These states rely heavily on property taxes to fund education and local services.

Property Tax Calculator — Annual & Monthly Estimate | KalkWise

By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the property tax calculator — annual & monthly estimate?

In short

Property tax = assessed home value × effective tax rate. On a $350,000 home at the US national average of 1.1%, annual property tax is $3,850 ($321/month). Rates range from 0.32% in Hawaii to 2.23% in New Jersey — choosing the right state or county can save thousands per year.

This property tax calculator estimates your annual and monthly property tax bill. Enter your home's assessed value and your county's effective tax rate to see your tax in seconds. The effective rate already accounts for assessment ratios and exemptions — making it the most accurate single-number comparison.

How to use this calculator

1Enter your home's assessed value — find this on your property tax bill or county assessor website.
2Enter your county's effective tax rate (total taxes paid ÷ home market value). The national average is 1.1%.
3Read your annual property tax and monthly escrow amount.
4Adjust the rate to compare different counties or states.

The formula

annual tax=assessed value×effective rate

monthly escrow=annual tax12

Annual property tax = assessed home value × effective tax rate. Monthly escrow = annual tax ÷ 12. The effective rate is your actual taxes paid divided by home value — it already accounts for exemptions and assessment ratios.

assessed value: — Value assigned by the county assessor — may differ from market value depending on state rules
effective rate: — Actual taxes paid ÷ home value — the most comparable metric across counties
annual tax: — Assessed value × effective rate
monthly escrow: — Annual tax ÷ 12 — typically added to your monthly mortgage payment

Worked example

The scenario

$350,000 home at a 1.1% effective property tax rate (national average).

gives

The result

Annual tax = $350,000 × 1.1% = $3,850. Monthly escrow = $3,850 ÷ 12 = $321/month.

Common use cases

Estimating property tax before buying a home
Budgeting for escrow payments on a mortgage
Comparing property tax costs between states and counties
Evaluating the total cost of homeownership in a new area

Limitations & assumptions

The effective rate varies by county and municipality — use your county's actual rate for accuracy.
Homestead exemptions, senior exemptions, and veterans' exemptions can significantly reduce your actual bill.
Assessed value may differ from market value — your county assessor sets the assessed value.
Property tax rates can change year to year as local budgets are adopted.

Frequently asked questions

The US median effective property tax rate is about 1.1% of home value. That means a $350,000 home pays roughly $3,850/year on average. Rates range from a low of 0.32% in Hawaii to a high of 2.23% in New Jersey.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.

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