Estimate your annual property tax and monthly housing budget
Find out how much property tax you may owe in 2026 using your home’s assessed value, local tax rate and eligible exemptions. The calculator works with percentage rates, millage rates and dollar amounts per $100 of taxable value.
It also estimates monthly property tax, the impact of exemptions and a basic mortgage escrow budget. You can use your actual assessment notice or start with market value and a locally verified assessment ratio.
Enter property and tax details
Pre-filled numbers are hypothetical. They do not represent a verified rate for a particular state, county or address.
How is annual property tax calculated in the United States?
In many US jurisdictions, annual real estate tax starts with a taxable assessed value and the tax rates imposed by the applicable county, city, school district and other taxing units.
The simplified formula is taxable assessed value multiplied by the combined local tax rate. Qualifying exemptions and credits can reduce the amount, while special assessments or fixed charges may add to the final bill.
Assessed value
The value determined under the local assessor’s rules, which may differ from what the property would sell for.
Local millage
The applicable rate, sometimes expressed as mills per $1,000 or dollars per $100 of taxable value.
Exemptions
Eligible homestead, senior, veteran, disability or other relief may reduce taxable value or the final bill.
What does this calculator include?
The tool estimates ordinary value-based real estate tax, supports three rate formats, adjusts for eligible value exemptions and tax credits, and adds separately entered fixed charges. It also gives monthly planning amounts for taxes, insurance and HOA dues.
It does not determine parcel-specific exemptions, verify official tax rates, calculate delinquency penalties or generate an official property tax bill.
How to estimate your 2026 property tax correctly
- Find your property’s assessment notice. Use your county assessor or local property appraiser’s official records and verify the applicable assessment year.
- Choose the value mode. If you know the actual assessed value, enter it directly. Otherwise, enter estimated market value and the legally applicable assessment ratio.
- Find the combined local rate. Use your property’s taxing district records, not a generic national or statewide average.
- Select the rate format. Enter the number exactly as shown in percentage, mills per $1,000 or dollars per $100.
- Add eligible exemptions. Enter only the qualifying amount that reduces the taxable base across the entered rates. Use the credit field for an eligible dollar reduction of tax.
- Include separate charges. Add annual fixed assessments or fees that appear in addition to the value-based tax, avoiding amounts already included elsewhere.
- Review annual and monthly results. Compare the estimate with the local tax bill or use the monthly figures for budgeting.
Property tax formula: market value, assessed value and taxable value
Property taxes usually begin with the local assessment method. Some jurisdictions assess eligible property at or near market value, while others use a fractional assessment or special valuation system.
Estimated assessed value = Market value × Assessment ratio ÷ 100
Taxable value = Assessed value − Applicable value exemptions
Gross property tax = Taxable value × Combined rate ÷ 100
Estimated annual bill = Gross property tax − Eligible tax credits + Separate fixed charges
What is the difference between market value and assessed value?
Market value is generally an estimate of what the property would sell for under normal market conditions. Assessed value is the value assigned for property tax purposes under the applicable state and local assessment rules.
They may match in some jurisdictions, but they are not always identical. Assessment levels, capped values, classification, reassessment cycles and statutory limitations can produce a different taxable value.
What if your county uses an assessment ratio?
Suppose a property has a market value of $400,000 and the applicable assessment ratio is 40%. Its estimated assessed value would be $160,000 before exemptions.
If you used the full $400,000 with a mill rate intended for the 40%-assessed value, you could substantially overestimate your tax. Always match the rate’s denominator and tax base.
What if you already know the assessed value?
Choose the direct assessed-value mode to skip the market-value conversion. Then enter the exemptions that apply to that assessed amount.
If the figure on your bill is already labeled taxable value after exemptions, enter it as the assessed-value input and set exemptions to zero to avoid subtracting them twice.
How do millage rates work? Mills vs percentage vs dollars per $100
A mill is one dollar of tax per $1,000 of taxable assessed value. You may see millage rates on county notices, while other jurisdictions quote rates as percentages or as dollars per $100 of taxable value.
| Rate format | Example | Equivalent rate |
|---|---|---|
| Percentage | 1.25% | 12.5 mills |
| Mills per $1,000 | 12.5 mills | 1.25% |
| Dollars per $100 | $1.25 per $100 | 1.25% |
| Mills per $1,000 | 20 mills | 2.00% |
| Percentage | 0.75% | 7.5 mills |
Example using 20 mills
On a taxable assessed value of $200,000, a rate of 20 mills produces $4,000 in value-based property tax, because $200,000 divided by $1,000 equals 200 taxable units, and 200 multiplied by $20 equals $4,000.
Combining county, city and school rates
If a property’s taxable assessment is identical across all taxing units, you may be able to add their tax rates before calculating the total.
For example, hypothetical rates of 5 mills for a county, 7 mills for a school district and 3 mills for a city produce a combined rate of 15 mills. On $250,000 of taxable assessed value, the estimated tax would be $3,750.
But if an exemption applies to school taxes and not to city taxes, the taxable base may differ. Calculate each taxing unit separately in that situation.
2026 property tax calculation examples by home value
These illustrations use hypothetical combined rates. They explain the calculation and are not claims about actual 2026 rates in specific cities or counties.
| Taxable assessed value | Example rate | Annual property tax | Monthly equivalent |
|---|---|---|---|
| $150,000 | 1.00% | $1,500 | $125.00 |
| $200,000 | 1.25% | $2,500 | $208.33 |
| $250,000 | 1.50% | $3,750 | $312.50 |
| $300,000 | 1.10% | $3,300 | $275.00 |
| $400,000 | 1.20% | $4,800 | $400.00 |
| $500,000 | 1.50% | $7,500 | $625.00 |
Example: $400,000 home with a $25,000 exemption
Assume the $400,000 value is also the property’s assessed value and that a qualifying $25,000 value exemption applies uniformly. The taxable value is $375,000.
At a hypothetical 1.2% combined rate, annual property tax is $4,500, or $375 per month. Without the exemption, it would have been $4,800. The exemption reduces the estimated tax by $300 annually.
Example: $350,000 home assessed at 40%
Suppose a jurisdiction applies a 40% assessment ratio to this property class. The resulting assessed value is $140,000. At 25 mills and with no exemptions, the annual property tax is $3,500.
This example illustrates why a mill rate cannot always be applied to the purchase price directly.
Example: mortgage payment with property taxes
Assume annual property tax of $4,800 and homeowners insurance of $1,800. A basic annual reserve is $6,600, equal to $550 per month. That amount is in addition to mortgage principal and interest, and excludes any escrow shortages, cushion adjustments or other housing costs.
Homestead, senior, veteran and disability property tax exemptions
Tax exemptions and relief programs are not identical across the United States. Each state—and sometimes each local taxing authority—sets eligibility requirements, application processes and benefit amounts.
Homestead exemption
May reduce the taxable value of an eligible primary residence. Owner occupancy and other conditions commonly apply.
Senior homeowner relief
Some jurisdictions offer exemptions, credits, freezes or deferrals based on age, income, ownership or residency.
Disabled veteran relief
Qualifying veterans or surviving spouses may be eligible for partial or full relief under applicable state law.
Disability exemptions
Some states provide relief for qualifying disabilities, with varying documentation and eligibility requirements.
Tax credits
A tax credit may reduce the bill directly, rather than lowering the assessed taxable value.
Assessment caps
Some states limit annual growth in assessed value for qualifying properties. Caps are different from rate reductions.
Example: how a $50,000 exemption changes the bill
If the exemption reduces taxable value by $50,000 across a combined 1% tax rate, the potential annual value-based tax savings are $500.
That does not mean everyone who receives a $50,000 homestead exemption saves exactly $500. Certain exemptions apply only to designated portions of a property tax bill or specific taxing units.
Texas homestead and local exemptions
Texas property tax is locally administered. Taxing units may have different exemptions and taxable-value calculations. The official Texas Comptroller guidance explains that most exemption applications are submitted to the county appraisal district. Review Texas property tax exemption guidance.
Florida homestead and Save Our Homes
Florida’s homestead exemption and Save Our Homes limitation can reduce or constrain taxable assessed value for qualifying homes. County property appraisers determine eligibility, and exemptions may affect different taxing authorities differently. Read Florida’s official exemption guide.
New York STAR and other exemptions
New York offers programs including STAR-related school-tax relief and exemptions for certain qualifying seniors and veterans. The STAR benefit may be structured as an exemption or credit. A benefit that applies only to school taxes should not simply be subtracted from the taxable value for every other taxing unit.
Check New York STAR eligibility and benefits.
How to look up your actual property tax rate and assessed value
Your official tax notice or parcel record is the most useful starting point. Look for the property’s parcel number, assessed value, taxable value, exemptions, each taxing authority’s rate and the year to which the figures apply.
Official instructions for identifying local assessment records, including county and municipal resources.
Statewide property-tax guidance and directions for contacting local appraisal districts and tax assessor-collectors.
Find reported rates by county, city, school district and other taxing units, with year-specific data.
Learn how to work with the county property appraiser and locate applicable relief programs.
Illustrates parcel-specific assessment, millage and exemption calculations.
Locate state tax resources, then identify the county or municipal assessor and tax collector handling your parcel.
Official property tax lookup: micro-step guide
- Identify the property’s county or local assessing authority. Search the official government website for assessor, appraisal district or property appraiser.
- Open its property search system. Use the site’s parcel, address or owner-search option where publicly available.
- Find the correct parcel. Confirm the street address, parcel ID, tax district and assessment year.
- Read the assessment fields. Distinguish market value, assessed value, capped value, taxable value and individual exemptions.
- Open the current tax rate or tax bill details. Record each applicable local taxing unit’s rate and its rate format.
- Enter the numbers into this calculator. If individual taxing units use different taxable bases, calculate them separately instead of assuming one combined value.
- Check the actual tax bill. Look for special assessments, credits, installment schedules, due dates and whether payments are current.
Can you look up property taxes by address?
Many local government property search tools support address searches. Some require a parcel ID or other information. Enter the street number, street name and locality accurately, and verify the matched parcel before relying on the figures.
How do you find previous property tax payments?
Look for payment history or tax account details on the county treasurer or tax collector’s official website. A property assessment search and a tax-payment portal may be separate services. Do not assume that a listed assessment means the bill has been paid.
How much should you budget monthly for property tax and escrow?
Property tax can be billed annually, twice a year, quarterly or according to another local schedule. A monthly estimate helps homeowners and buyers prepare for the expense, even when the actual payment is not due each month.
Monthly property tax budget = Estimated annual property tax ÷ 12
Basic tax + insurance monthly reserve = (Annual property tax + Annual homeowners insurance) ÷ 12
Is monthly escrow the same as the annual tax divided by 12?
Not always. Mortgage servicers may escrow homeowners insurance and other qualifying payments along with property taxes. The payment may also reflect past escrow shortages, required reserve adjustments and an allowed cushion.
The Consumer Financial Protection Bureau explains that escrow payments are subject to federal requirements for covered loans, including limits on deposits and permissible cushion amounts.
Property tax
The estimated annual real estate tax collected by local authorities.
Homeowners insurance
A separate expense that a servicer may include in a mortgage escrow account.
HOA or condo dues
A separate ownership expense. The tool includes it in the budget but not automatically in escrow.
Read the CFPB guide to mortgage escrow accounts.
What if property tax increases and your mortgage payment goes up?
If a lender pays taxes from escrow and the expected tax bill increases, the servicer may adjust your monthly escrow amount. A shortage from the previous year can also affect your payment.
Compare the county tax bill, your mortgage servicer’s annual escrow statement and the actual insurance premium. Ask the servicer to explain any differences.
Buying a home? Do not assume the seller’s tax bill will continue
Some properties have capped assessments, long-held ownership benefits, exemptions or special valuations that change after a sale. A buyer’s future assessment may differ materially from the seller’s bill.
Ask the local assessor about reassessment rules after a transfer, and account for a possible higher property tax estimate when evaluating the home’s affordability.
What to do if your property tax assessment seems too high
A higher property tax bill does not automatically mean your assessor made a mistake. Local budgets, adopted tax rates, changing property values, lost exemptions and special assessments can all affect your bill.
First determine whether the assessment is inaccurate
- Open the current assessment notice. Review assessed value, property classification, land/building data, exemptions and applicable valuation date.
- Check for factual mistakes. Compare square footage, lot size, building characteristics, recent improvements and other recorded property details.
- Review comparable sales. Look for properties of similar size, condition and location sold near the relevant valuation date.
- Contact the local assessor. Ask for an informal review or clarification of the assessment and exemption status.
- Check the official appeal deadline. These deadlines are jurisdiction-specific and may arrive before the final bill is issued.
- File through the required channel. Submit the authorized protest, grievance or appeal form with evidence and retain confirmation.
- Attend the hearing if required. Review the decision and any available next-level appeal procedures.
Texas property tax protests
The Texas Comptroller provides official guidance on challenging appraised values and appraisal-record errors. Property owners can contact their appraisal district and follow the appraisal review board process.
See Texas property tax protest rules and forms.
New York assessment grievances
In New York, the assessment review process varies by municipality. Outside certain exceptions such as New York City and Nassau County, an RP-524 grievance may be used under the applicable local procedures.
Read New York’s official grievance procedures.
How much could an assessment reduction save?
With a uniform 1.5% combined rate, reducing an applicable taxable assessment by $20,000 could reduce annual value-based tax by about $300. Actual savings depend on which taxing units use the reduced assessment and whether caps, exemptions or credits interact with it.
Can you deduct property taxes on your 2026 federal income tax return?
Some state and local real estate taxes may qualify as itemized deductions on federal Schedule A when the taxpayer meets the relevant rules. This is different from reducing the actual property tax charged by your county.
Generally, qualifying real property taxes are based on real property value and imposed for general public purposes. Certain service charges, improvement assessments and other items on the property tax bill may not qualify for the same deduction.
2026 state and local tax deduction limit
For tax year 2026, the overall federal state and local tax (SALT) itemized deduction limit is generally $40,400, or $20,200 if married filing separately, subject to income-based limitations and applicable minimum limits.
The 2026 reduction thresholds begin above modified adjusted gross income of $505,000, or $252,500 if married filing separately. The actual allowable deduction depends on the taxpayer’s other state and local taxes, filing status, income and current rules.
Examples of charges that may not qualify
- Separate trash collection or similar service charges.
- Charges for specific improvements that increase the property’s value, subject to relevant exceptions.
- Homeowners association fees.
- Mortgage principal payments.
- Other nonqualifying service charges included in a local billing statement.
Official IRS micro-step guide
- Open IRS Publication 530 — Tax Information for Homeowners.
- Locate the section on deductible state and local real estate taxes.
- Review your actual property tax records and payments during the applicable tax year.
- Separate qualifying value-based real estate taxes from nondeductible service or improvement charges.
- Review all applicable state and local income, sales and property taxes together.
- Consult the tax-year-specific Schedule A instructions and applicable SALT limitations.
- Compare itemized deductions with the standard deduction before deciding which method applies to your federal return.
What should you do based on your property tax question?
Buying a new home?
Use the prospective assessed value and post-purchase exemption rules rather than blindly copying the seller’s current tax bill. Include property tax in your affordability budget.
Already own your home?
Use the latest official assessed value, approved exemptions and adopted rates. Compare against your actual bill and mortgage escrow statement.
Want to lower your tax bill?
Check legally available exemptions, credits, assessment limitations and official appeal procedures. Do not assume lower market estimates automatically reduce your tax.
Received a much higher bill?
Compare assessment changes, local rates, exemption changes and added district charges. Contact the correct government office for an explanation.
Common calculation mistakes to avoid
| Mistake | Why it matters | Correct approach |
|---|---|---|
| Using market value as taxable value | Local assessment ratios and caps may apply | Check the assessment notice. |
| Entering 15 as 15% when rate is 15 mills | 15 mills equals 1.5% | Choose the matching rate format. |
| Subtracting a homestead exemption twice | Taxable value may already include relief | Use exemptions once, at the correct stage. |
| Assuming all districts share one taxable base | Exemptions may differ by taxing unit | Calculate individual district taxes if needed. |
| Ignoring fixed fees and assessments | The final bill may include additional charges | Add qualifying separate charges to the bill estimate. |
| Treating HOA dues as property tax | They are different ownership expenses | Budget them separately. |
| Using the previous owner’s bill as the new tax amount | Transfer, exemptions or reassessment may change taxes | Verify post-purchase assessment rules. |
| Assuming a forecast increase is legally permitted | Some properties have assessment growth limits | Check local caps and assessment-change rules. |
Top 10 Property Tax Calculator 2026 FAQs
1. How do I calculate annual property tax in 2026?
Find the property’s taxable assessed value and apply the applicable local tax rate. Then account for eligible credits and additional billed assessments or charges. The exact calculation can vary because different taxing units may use different taxable values and exemptions.
2. How much property tax will I pay on a $400,000 home?
If the full $400,000 is taxable at a hypothetical 1.2% rate, the estimated annual property tax is $4,800. The actual amount may be higher or lower depending on the local assessment method, adopted rates, exemptions and charges.
3. Is property tax based on market value or assessed value?
Property tax is generally based on taxable assessed value determined under local law. That value may equal or differ from market value because of assessment ratios, caps, classifications and exemptions.
4. What does a millage rate mean for property taxes?
One mill means $1 of property tax per $1,000 of taxable assessed value. A rate of 10 mills is equivalent to 1%. On a taxable assessment of $200,000, 10 mills produces $2,000 of value-based property tax.
5. How do I find my local property tax rate by address?
Visit the official local assessor, appraisal district, treasurer or tax collector website. Search for the correct property parcel, confirm the assessment year, and review the taxing districts, taxable values and rates. Address searches are available in many but not all jurisdictions.
6. How does a homestead exemption reduce my property tax?
A qualifying homestead exemption may reduce assessed taxable value for specific taxing authorities, while some programs provide credits or other relief. The actual savings depend on local laws, benefit limits and which portions of the bill qualify.
7. How do I calculate monthly property taxes for mortgage escrow?
Divide estimated annual property tax by 12 for a basic monthly tax budget. Mortgage servicers may also include homeowners insurance, permitted escrow cushions, shortages and other adjustments, so the actual escrow payment can differ.
8. Why did my property tax increase in 2026?
Possible reasons include a higher taxable assessment, changes in adopted tax rates, new improvements, lost exemptions, new district charges or reassessment after a property transfer. Compare the current and previous official notices to identify the cause.
9. Can I appeal my property tax assessment?
Many jurisdictions provide an administrative assessment appeal or protest process. Review the property’s valuation and record details, collect supporting evidence and file by the applicable local deadline. A successful appeal is not guaranteed and does not necessarily change the adopted tax rate.
10. Is property tax deductible on a federal income tax return?
Qualifying state and local value-based real estate taxes may be deductible when itemizing, subject to federal rules and SALT limitations. For tax year 2026 the general SALT deduction limit is $40,400, or $20,200 for married filing separately, with income-based limitations. Service charges and some improvement assessments may not qualify.
Official property tax and homeowner resources
These government sources explain local assessments, tax rates, exemptions, property tax billing, assessment challenges and mortgage escrow rules. For an actual 2026 tax amount, your own local assessment roll and adopted tax-rate records remain essential.
- New York State Department of Taxation and Finance — How Property Taxes Are Calculated: taxable assessment and tax rate formula.
- New York — Understanding Property Tax Bills: taxing jurisdictions, taxable values and exemptions.
- New York — Check Your Assessment: assessment rolls and locating municipal records.
- New York — Contest Your Assessment: formal assessment review and supporting evidence.
- Texas Comptroller — Property Tax Assistance: local appraisal and administration guidance.
- Texas Comptroller — Tax Rates and Levies: reported tax rates for multiple taxing units.
- Texas Comptroller — Property Tax Exemptions: local exemptions and application procedures.
- Texas Comptroller — Appraisal Protests and Appeals: protest guidance and official forms.
- Florida Department of Revenue — Property Tax Exemptions: homestead and assessment-limitation guidance.
- Consumer Financial Protection Bureau — Escrow Accounts: mortgage escrow budgeting and administration.
- CFPB — Escrow Payment Limits: monthly collections, reserves and applicable limitations.
- IRS Publication 530 — Tax Information for Homeowners: real estate taxes, deductions and nondeductible expenses.
- IRS — 2026 SALT Deduction Limit Clarification: official tax-year-specific deduction limits and income thresholds.
Plan for property tax before the bill arrives
Use the calculator to estimate your annual property tax, compare rate formats, account for qualifying exemptions and build a basic monthly reserve. Verify the final assessment, adopted local rates, exemptions and due dates through the government office responsible for your property.
Calculate property tax again · Find official property records · Review government sources
TaxCalculatorUSA.org is an independent informational website. It is not a county assessor, tax collector, government agency or mortgage servicer. Calculator results are estimates and are not an official tax bill, exemption approval or legal or tax advice.