Property Tax Calculator
Property tax rates vary enormously by location. Estimate your real annual and monthly bill, exemptions included.
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National average is around 1.1% — varies enormously by state and county.
Annual Property Tax
$3,575/yr
$298/mo
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Last updated: August 17, 2026 · Reviewed by the DoCalc team
Why Property Tax Varies So Much
Property tax is set locally, not nationally — state, county, and sometimes city or school district rates all stack together, which is why identical-value homes in different areas can have property tax bills that differ by thousands of dollars a year. A 1.1% national average rate is a reasonable planning default, but real rates commonly range from under 0.3% in some states to over 2% in others.
The Formula
A homestead exemption (available in many but not all states, usually for owner-occupied primary residences) reduces the taxable value before the rate is applied — it's a real, meaningful reduction where available, so check if your state and county offer one.
Worked Example
A $350,000 home with a $25,000 homestead exemption has a taxable value of $325,000. At a 1.1% rate, annual property tax is $325,000 × 1.1% = $3,575/year, or about $298/month if paid through an escrow account alongside your mortgage.
How Property Tax Is Usually Paid
Most homeowners with a mortgage pay property tax through an escrow account — the lender collects roughly 1/12th of the estimated annual bill with each mortgage payment and pays the tax authority directly when it's due. Homeowners without a mortgage (or who've opted out of escrow) typically pay directly to the county, often annually or semi-annually.
Pros and Cons of Escrowing Property Tax
Pros: spreads a large annual bill into manageable monthly amounts, and removes the risk of forgetting a large lump-sum payment.
Cons: escrow accounts are periodically re-analyzed and can require a shortage payment or raise your monthly payment if tax rates or your assessed value increase — a common, surprising cause of mortgage payment increases unrelated to your interest rate.
Who Should Use This Calculator
Use it if you're budgeting for a home purchase or want to sanity-check an escrow analysis from your lender. Always verify your specific county's actual rate and any exemptions you qualify for — check your county assessor's website for the real, current figure.
Frequently Asked Questions
What's the average property tax rate in the US?
Roughly 1.1% of assessed home value per year on average nationally, but actual rates vary enormously by state and county — from under 0.3% in some low-tax states to over 2% in others.
What is a homestead exemption?
A reduction in a home's taxable value, offered by many (not all) states and counties for owner-occupied primary residences — it lowers the base your property tax rate is applied to, reducing your bill.
Why did my property tax bill increase without my tax rate changing?
Property tax is calculated on assessed value, not just rate — if your local assessor's office raises your home's assessed value (common during periods of rising home prices), your bill rises even if the tax rate itself stayed flat.
Is property tax included in my mortgage payment?
Often, yes — most lenders collect 1/12th of your estimated annual property tax with each monthly mortgage payment and hold it in an escrow account, then pay the tax bill on your behalf when due.
How do I find my area's actual property tax rate?
Check your county assessor's or tax collector's website — they publish current mill rates or percentage rates, and often let you look up your specific property's assessed value and tax history directly.
Do renters pay property tax?
Not directly — but landlords typically factor property tax into the rent they charge, so renters pay it indirectly as part of their monthly rent.