Property Tax Calculator

Annual Property Tax = Assessed Value × Effective Tax Rate. Each state has a different effective rate (state average between 0.3% and 2.2%). Counties and cities then layer on additional millages, so the actual rate on your specific property may differ from the state average by 20–40%.

Effective rate is property tax ÷ market value (a single percentage you can compare across states). Millage rate is the levy ÷ assessed value, expressed in mills per $1,000 of value. Many local governments publish millage; effective rate is the comparison shopper’s metric.

Hawaii, Alabama, and Colorado have very low effective rates (0.3–0.6%) because property values are high relative to local government revenue needs, or because of state-funded services that reduce local levies. Hawaii in particular subsidizes local government from state-level tourism revenue.

New Jersey, Illinois, and New Hampshire have effective rates over 2% because they fund a much larger share of public services (schools, infrastructure, services) at the local level — and have less state-level support. New Jersey’s school funding is famously dependent on local property taxes.

Yes — and you should, especially after buying. Most counties allow an annual appeal window (often 30–60 days after the new assessment is mailed). If recent comps show your property would sell for less than the assessed value, you have grounds. Successful appeals routinely save investors $1,000–$5,000+ per year.

Most states offer homestead exemptions for primary residences (NOT investment property). Senior, disability, and veteran exemptions are common. Investors don’t typically qualify for these — but tax-abatement programs for new construction or rehab in opportunity zones can apply.

Property taxes are usually the second-largest operating expense after the mortgage. Underestimating them by even 0.3% on a $400k property is $1,200/year of phantom cash flow. Always pull the actual assessment from the county website rather than relying on the listing’s claim.