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Property Tax Calculator

Estimate annual property taxes based on assessed value, mill rate, and exemptions. Essential for real estate exam prep and homebuyers.

Property Tax Calculator
Enter property and tax details
$

Fair market value of the property

%

Percentage of market value assessed for taxes

mills

1 mill = $1 tax per $1,000 of assessed value

$

Homestead or other exemptions (if applicable)

Tax Calculation

Annual Property Tax$6,000.00
Monthly Tax$500.00

Assessment Details

Assessed Value$240,000.00
Taxable Value$240,000.00
Effective Tax Rate2.00%

Tax Rate Conversion:
25 mills = 2.50% = $25.00 per $1,000

How It Works

1. Enter Property Details

Input your property's market value and the local assessment rate used by your tax authority.

2. Add Tax Rate & Exemptions

Enter your local mill rate and any exemptions like homestead, senior, or veteran discounts.

3. Get Your Tax Estimate

Instantly see your annual and monthly property tax along with the effective tax rate.

Understanding Property Taxes

The Property Tax Formula

Assessed Value = Market Value × Assessment Rate

Tax = Assessed Value × (Mills ÷ 1000)

Understanding Mills

1 Mill$1 per $1,000 assessed value
10 Mills$10 per $1,000 = 1%
25 Mills$25 per $1,000 = 2.5%

Common Exemptions

  • • Homestead Exemption - for primary residence
  • • Senior Citizen Exemption - for qualifying seniors
  • • Veteran Exemption - for military veterans
  • • Disability Exemption - for disabled persons

Frequently Asked Questions

Free Property Tax Calculator for Homeowners and Real Estate Professionals

Understanding property taxes is essential for homeowners, real estate agents, and investors alike. Our free property tax calculator helps you estimate annual and monthly property tax obligations based on your property's market value, local assessment rate, mill rate, and any applicable exemptions. Whether you're buying a new home, preparing for the real estate exam, or helping clients understand their tax burden, this tool provides accurate estimates in seconds.

How Property Taxes Are Calculated

Property taxes are calculated using a two-step process. First, your property's market value is multiplied by the local assessment rate to determine the assessed value. Then, this assessed value (minus any exemptions) is multiplied by the mill rate to calculate your annual tax. One mill equals $1 per $1,000 of assessed value, so a property with a $200,000 assessed value and a 25-mill rate would owe $5,000 annually.

Why Property Taxes Matter in Real Estate

Property taxes significantly impact the true cost of homeownership and are a key factor in investment property analysis. For buyers, monthly tax payments are included in mortgage escrow calculations. For investors, property taxes affect NOI (Net Operating Income) and cap rate calculations. Real estate agents should help clients understand tax implications, especially when comparing properties in different tax jurisdictions.

Maximize Your Tax Savings

Many homeowners miss out on valuable exemptions that could reduce their property tax burden. Common exemptions include homestead exemptions for primary residences, senior citizen discounts, veteran exemptions, and disability exemptions. Check with your local tax assessor's office to ensure you're claiming all exemptions you qualify for, and don't hesitate to appeal your assessment if you believe your property is overvalued.

Practice Tax Calculations

Master property tax calculations with our practice exam questions.

Start Practicing