US Real Estate Calculators

Property tax in the United States is administered at the county and municipal level, with no federal property tax, creating enormous variation across and within states. The national average effective property tax rate is approximately 1.1% of market value annually (Tax Foundation 2024), but this masks a range from 0.27% in Hawaii to 2.33% in New Jersey. Assessed value is often a fraction of market value: many jurisdictions assess at 80–100% of market value, but some (like California under Proposition 13) cap annual increases at 2% until a sale event triggers reassessment at current market value, creating scenarios where neighbors in identical homes pay dramatically different taxes based on when they purchased.

Millage rates are the standard expression of property tax: 1 mill equals $1 of tax per $1,000 of assessed value. A property assessed at $300,000 in a jurisdiction with a 15-mill rate (combining county, city, and school levies) pays $4,500/year. Homestead exemptions reduce the taxable assessed value for primary residences. Texas offers a $100,000 general homestead exemption (increased from $40,000 in 2023) plus an additional $10,000 school district exemption for seniors 65+, removing $110,000 from the taxable base. Florida caps assessed value increases at 3% per year for homesteaded properties (Save Our Homes amendment) and provides a $50,000 homestead exemption.

For most homeowners with mortgages, property taxes are escrowed: the lender collects 1/12 of the annual tax bill monthly, holds it in an escrow account, and pays the tax authority directly at billing. Lenders are required by RESPA to provide an initial escrow disclosure and an annual escrow account statement. When property taxes rise (or a reassessment occurs), the monthly escrow payment adjusts, often creating unexpected payment increases mid-loan. Property tax appeals are available in all states, typically filed with a county assessor or Board of Equalization within 30–90 days of the assessment notice.