Property Tax Calculator: Estimate annual property taxes based on assessed value. The Property Tax Calculator estimates annual property taxes based on assessed value and local tax rates, showing monthly and annual tax obligations.
Estimate annual property taxes based on assessed value, mill rate, and exemptions. Essential for real estate exam prep and homebuyers.
Fair market value of the property
Percentage of market value assessed for taxes
1 mill = $1 tax per $1,000 of assessed value
Homestead or other exemptions (if applicable)
Tax Rate Conversion:
25 mills = 2.50% = $25.00 per $1,000
Input your property's market value and the local assessment rate used by your tax authority.
Enter your local mill rate and any exemptions like homestead, senior, or veteran discounts.
Instantly see your annual and monthly property tax along with the effective tax rate.
Assessed Value = Market Value × Assessment Rate
Tax = Assessed Value × (Mills ÷ 1000)
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.
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.
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.
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.
Master property tax calculations with our practice exam questions.
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Key facts
Annual property tax = assessed value × assessment ratio × tax rate. In states that quote mills, the rate is mills ÷ 1,000. Exemptions (homestead, senior, veteran) reduce the assessed value first.
$4,400 a year. A $50,000 homestead exemption would lower it to 350,000 × 1.1% = $3,850.
A mill is one dollar of tax per $1,000 of assessed value, so a rate of 11 mills equals 1.1%. Many counties publish their rate in mills and their assessment ratio separately; multiply assessed value by the ratio, then by mills over 1,000, to get the bill. Some states cap yearly increases in assessed value.
A sale often resets the assessed value to the purchase price, removing the previous owner’s capped assessment and their exemptions. In California, for example, Proposition 13 limits increases to 2% a year until a sale, so a long-time owner’s bill can be far below what the new owner will pay.
Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.
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