Property Tax Calculator (Exemption and Assessment Ratio)
How much will my property tax be? Enter the market value, the share of it that is assessed, any exemption and your local tax rate. You get the yearly tax and the monthly amount to set aside.
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Formula
assessed value = market value x assessment ratiotaxable value = max(0, assessed value - exemption)annual tax = taxable value x tax ratemonthly escrow = annual tax / 12effective rate = annual tax / market value
Worked example
Market value 300,000, ratio 60%, exemption 20,000, rate 1.5%:
- Assessed: 300,000 x 0.60 = 180,000
- Taxable: 180,000 - 20,000 = 160,000
- Annual tax: 160,000 x 0.015 = 2,400; monthly escrow 200
- Effective rate: 2,400 / 300,000 = 0.8%
Rates, ratios and exemptions are whatever you enter; the page applies no local rules.
When to use it
Use this page to budget the yearly tax on a home or compare areas that use different assessment methods. For the whole monthly housing cost, use the mortgage calculator, and for the highest price you can afford with tax and insurance included, use the home affordability calculator.
Second example
A 250,000 home assessed at 40% in an area with a 3.5% rate: assessed value 100,000, tax 3,500 a year (291.67 a month). The effective rate is 3,500 ÷ 250,000 = 1.4%, which makes it comparable with a place that taxes 100% of value at 1.4%.
Common mistakes
- Mixing a rate that applies to assessed value with one that applies to market value.
- Forgetting that a reassessment after a sale can raise the bill.
- Ignoring special charges that are not part of the rate.
- Entering a mill rate as a percentage.
Frequently asked questions
How is property tax calculated?
Assessed value is market value times the assessment ratio. Subtract exemptions to get taxable value, then multiply by the tax rate. For 300,000 at 60% ratio, a 20,000 exemption and 1.5%: 180,000 - 20,000 = 160,000 x 1.5% = 2,400 a year.
What is monthly escrow?
Some lenders collect one twelfth of the yearly tax with each mortgage payment and pay the bill for you. For 2,400 a year that is 200 a month.
What is the assessment ratio?
Some areas tax only a fraction of market value. At 100% the whole market value is assessed. Enter the ratio and rate that your local authority publishes.
What is the effective rate?
It is the tax divided by market value, so you can compare areas on the same basis. In the example 2,400 / 300,000 = 0.8%, lower than the 1.5% headline rate.
How much is property tax on a 500,000 home at 1.1%?
With a 100% assessment ratio and no exemption, the tax is 500,000 × 1.1% = 5,500 a year, or 458.33 a month in escrow.
How much does an exemption save?
The saving is the exemption times the tax rate. A 20,000 exemption on a 300,000 home taxed at 1.2% lowers the bill from 3,600 to 3,360, a saving of 240 a year.
How do I convert a mill rate to a percentage?
A mill is one thousandth of a dollar per dollar of value, so divide the mills by 1,000. 15 mills is 1.5%, or 15 per 1,000 of taxable value. On 200,000 of taxable value that is 3,000 a year.