Property tax in America ranges from 0.32% in Hawaii to 2.49% in New Jersey — a 7.8x spread between the lowest and highest states. On a $400,000 home, that’s $1,280/year vs. $9,960/year — a $8,680 difference for the same home in different states. This free property tax calculator uses Tax Foundation 2024 state-average effective rates, applies common state homestead exemptions, and projects your total property tax over years of ownership.
Property Tax Calculator (by State)
Estimate your annual property tax with state effective rates and common homestead exemptions. Override your local rate for an exact figure.
Estimated annual property tax
$0
Adjust inputs to see your estimate.
Monthly equivalent
$0
Effective rate
0.00%
vs national average
—
Total over 10 years
$0
Select a state to compare to the national average.
Estimates based on state-average effective rates. Your actual property tax depends on your local taxing district (city, school district, special assessments). Get your exact figure from your county assessor’s office or recent property tax bill. Not financial advice.
How property tax actually works
Property tax in the US is mostly local — set by counties, cities, school districts, and special districts (water, fire, mosquito control, etc.). The state often sets rules but doesn’t directly levy property tax. Your annual bill is computed as:
Property tax = (Assessed value − Exemptions) × Effective tax rate
Each piece matters:
- Assessed value is the value your local assessor places on the home. In some states this equals market value; in others it’s a fraction (50%, 70%, 80%). California (Prop 13) freezes assessed value at purchase price + 2%/year max, regardless of actual appreciation.
- Exemptions reduce taxable value. Common: homestead (primary residence), senior, disability, veteran, agricultural.
- Effective rate is the combined rate from all overlapping taxing districts. State averages are useful starting points; your actual rate may be higher or lower based on your specific district.
This calculator uses the effective tax rate (annual tax ÷ market value) — the most useful comparable rate across states and counties.
The 10 highest-property-tax states (effective rate)
| Rank | State | Effective rate | Annual tax on $400K home |
|---|---|---|---|
| 1 | New Jersey | 2.49% | $9,960 |
| 2 | Illinois | 2.27% | $9,080 |
| 3 | New Hampshire | 2.18% | $8,720 |
| 4 | Connecticut | 2.15% | $8,600 |
| 5 | Vermont | 1.90% | $7,600 |
| 6 | Wisconsin | 1.85% | $7,400 |
| 7 | Texas | 1.74% | $6,960 |
| 8 | Nebraska | 1.73% | $6,920 |
| 9 | New York | 1.72% | $6,880 |
| 10 | Rhode Island | 1.63% | $6,520 |
The 10 lowest-property-tax states
| Rank | State | Effective rate | Annual tax on $400K home |
|---|---|---|---|
| 1 | Hawaii | 0.32% | $1,280 |
| 2 | Alabama | 0.41% | $1,640 |
| 3 | Colorado | 0.55% | $2,200 |
| 4 | Louisiana | 0.55% | $2,200 |
| 5 | South Carolina | 0.57% | $2,280 |
| 6 | West Virginia | 0.58% | $2,320 |
| 7 | Nevada | 0.60% | $2,400 |
| 8 | Delaware | 0.61% | $2,440 |
| 9 | Wyoming | 0.61% | $2,440 |
| 10 | Arkansas | 0.62% | $2,480 |
Homestead exemptions — the often-missed savings
Most states offer a homestead exemption that reduces the taxable value of your primary residence. Examples:
- Florida: $50,000 off taxable value for primary residence (after the first $25K of value)
- Texas: $40,000 off for school district taxes + additional county/city exemptions (variable)
- Louisiana: $75,000 off taxable value
- Hawaii: $100,000 off (one of the largest in the US)
- South Carolina: $50,000 off + 4% assessment ratio (vs 6% for non-residents)
- Idaho: Up to $125,000 off
Some states have NO homestead exemption (NY, NJ, MA, CO, NV among others), though many of these offer other tax-reduction mechanisms like tax caps, senior exemptions, or veteran exemptions.
Apply for your homestead exemption within the first year of ownership. Most states require you to file with the county assessor by a specific date (often March 1 of the year after closing). Miss the deadline and you wait a full year.
How to lower your property tax bill
Three legitimate strategies:
1. Appeal your assessment
If your home was recently assessed at $500K but comparable nearby homes are selling for $440K, you have grounds to appeal. Process:
- Get 3-5 recent comparable sales (your real estate agent can pull these)
- File a formal appeal with the county Board of Equalization or Assessment Review (deadlines vary, often 30-60 days after annual notice)
- Bring comps to a hearing
- Roughly 30-40% of formal appeals succeed in some amount of reduction
A 10% reduction in assessed value × your tax rate = real annual savings.
2. Claim all eligible exemptions
Beyond the standard homestead, look for:
- Senior exemption (typically 65+, sometimes with income limits)
- Veteran exemption (varies by state; some states 100% disabled veterans get full exemption)
- Disability exemption
- Surviving spouse exemption
- Solar / energy-efficient upgrade exemptions (FL, AZ, NY, others — solar’s added value doesn’t count)
- Agricultural use exemption (if applicable)
Many of these stack with the homestead exemption.
3. Move
Half-joking, but in some scenarios — moving from Texas (1.74%) to Tennessee (0.71%) on a $500K home saves $5,150/year. Over 20 years, that’s $103,000.
Property tax and mortgage escrow
If you have a mortgage, your lender typically holds property tax in an escrow account. You pay 1/12 of the annual tax each month with your mortgage payment, and the lender pays the county on your behalf when the bill comes due.
When property tax rises (annual reassessment), your escrow balance falls behind. Your lender does an annual escrow analysis and either:
- Increases your monthly payment to catch up + cover the higher annual bill, OR
- Bills you a one-time escrow shortage (usually paid over 12 months)
Either way, your monthly housing cost can rise even when your interest rate is fixed. Plan for 3-7% annual property tax increases in fast-appreciating markets.
Frequently asked questions
How is the assessed value determined?
Your county assessor sets the assessed value based on comparable sales, property characteristics (square footage, condition, location), and sometimes a formula. Many counties reassess every 1-3 years. Assessed value may equal market value or be a fraction (50-80%) depending on state law.
What’s the difference between mill rate and effective rate?
A mill rate is dollars of tax per $1,000 of assessed value (e.g., 25 mills = $25 per $1,000). An effective rate is tax as a percentage of market value (e.g., 1.0% effective rate on a $400K home = $4,000 annual tax). Effective rate is easier to compare across states; mill rates require knowing assessed value separately.
What is California’s Prop 13?
California’s Proposition 13 (1978) caps annual property tax assessment increases at 2% per year, regardless of actual market appreciation. As a result, long-time California owners often pay vastly less property tax than newer buyers of identical homes nearby. Reassessment to current market value happens only at sale (with certain family transfer exceptions).
Are property taxes tax-deductible?
Yes, on federal taxes if you itemize, subject to the SALT cap of $10,000 (combined with state income tax). Most homeowners now take the standard deduction post-2017 TCJA, in which case property tax is not deductible.
How often do property taxes change?
Annually in most jurisdictions, when the assessor sets the new assessed value and the local government sets the millage rate / budget. Significant changes typically happen when:
- Local government raises its budget (school district referendum, infrastructure bond)
- Your home’s assessed value rises (annual reassessment in fast-appreciating markets)
- You lose a previously-claimed exemption
What happens if I don’t pay?
Unpaid property tax becomes a lien on your home. After 1-5 years (varies by state), the county can foreclose and sell your home at a tax sale. Tax foreclosure is more aggressive in some states than mortgage foreclosure. Always pay even if disputing — file an appeal but pay under protest.
Can I prepay property taxes?
In many states, yes — and some homeowners prepay December tax bills before year-end to maximize the deduction (when itemizing). Check the SALT cap before prepaying; if you’d exceed $10K combined SALT, the prepayment provides no federal tax benefit.
Does my mortgage payment include property tax?
If your loan-to-value ratio is above 80%, your lender almost always requires an escrow account that includes property tax. Below 80% LTV, escrow may be waived (you pay tax directly to the county). Some loan programs (FHA, USDA) require escrow regardless of LTV.
Methodology and sources
Effective property tax rates are sourced from the Tax Foundation’s 2024 Property Taxes by State rankings, which use US Census Bureau American Community Survey 1-year data and analysis of state revenue department data. Effective rate = total residential property tax collected ÷ aggregate market value of residential property in that state. Your specific county/city may have a higher or lower rate based on local school district, special district, and municipal levies. Homestead exemption defaults reflect each state’s standard primary-residence exemption as of 2026; some states offer additional exemptions (senior, veteran, disability) that may reduce the effective rate further. For exact county-specific rates, consult your local property assessor’s office or the most recent property tax bill on the property.
Reviewed by the CalcCottage editorial team. Updated May 14, 2026.