Finance

Property Tax Calculator (by State)

Q: How is property tax calculated?

Multiply your home's **assessed value** by the local **effective tax rate**. For example, a $400,000 home at a 1.5% rate owes **$6,000 a year**. The effective rate blends the local mill rate and assessment ratio, so it is the simplest way to estimate and compare bills.

Q: Which states have the highest property taxes?

**New Jersey (~2.38%)**, **Illinois (~2.32%)**, **New Hampshire (~2.15%)**, and **Connecticut (~1.98%)** have the highest average effective rates. On a typical home these states can mean $8,000–$10,000+ in annual property tax.

Q: Which states have the lowest property taxes?

**Hawaii (~0.28%)** is the lowest, followed by **Alabama (~0.43%)**, **Louisiana (~0.51%)**, and **Delaware/Colorado/Nevada (~0.55%)**. Hawaii's low rate is partly offset by very high home prices, so the dollar bill is not always as low as the rate suggests.

Q: Do states with no income tax have higher property tax?

Often, yes. **Texas** and **New Hampshire** have no state income tax but rank among the **highest property-tax** states because local governments rely on property tax for schools and services. Always compare the **total** tax burden, not just one tax.

Q: What is a homestead exemption?

A **homestead exemption** lowers the taxable value of your **primary residence**, reducing your bill. Amounts and eligibility vary widely by state, and many offer extra relief for **seniors, veterans, and disabled homeowners**. Check your county assessor to see what you qualify for.

Q: Why is my bill different from this estimate?

This uses **state averages**. Your actual rate is set by your **county, city, and school district**, and depends on your assessment ratio and any exemptions. Two homes of equal value in the same state can have different bills. Use the **custom rate** field with your local rate for accuracy.

Q: Is property tax included in my mortgage payment?

Usually. Most lenders collect **1/12 of your annual property tax each month** into an **escrow account** and pay the bill for you. That is why your total monthly payment (PITI) is higher than principal and interest alone — this calculator shows that monthly escrow amount.

Q: How often do property taxes go up?

Bills typically change **yearly** as assessments and local budgets change. Some states cap how fast assessed value can rise (California's Prop 13 limits it to 2% a year), while others reassess to market value regularly — which can cause bills to jump after home prices rise.

Estimate your annual property tax by state using average effective rates. Enter your home value and state to see the yearly bill, monthly escrow, and how it compares to the national average.

Data verified · July 2026
Edited by Martín Rodríguez
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Data updated: Jan 1, 2025 · Source: Tax Foundation — How High Are Property Taxes in Your State?

Edited by: Martín Rodríguez (editorial policy )

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Property tax is one of the largest ongoing costs of owning a home, and it varies more by location than almost any other homeowner expense. This calculator estimates your annual property tax — and the monthly amount that shows up in your mortgage escrow — based on your home's value and your state's average effective tax rate.

The math is simple: home value × effective rate = annual tax. What is not simple is the rate. It ranges from about 0.28% in Hawaii to roughly 2.38% in New Jersey — an 8x difference. On the same $400,000 home, that is the gap between a ~$1,100 and a ~$9,500 yearly bill. Because taxes are set locally, your specific county, city, or school district rate can be higher or lower than the state average, so the tool lets you enter a custom rate for a precise estimate.

Use it to compare the true cost of buying in different states, budget for escrow, sanity-check an assessment, or estimate the carrying cost of a home before you make an offer. The average rates come from Tax Foundation and U.S. Census data on owner-occupied housing.

When to use this calculator

Estimate your annual property tax bill from your home's value.
Compare property tax on the same home in two different states.
Budget the monthly property-tax portion of your mortgage escrow.
See how much cheaper a low-tax state like Hawaii or Alabama is.
Check the carrying cost of a home before making an offer.
Enter your exact county or city rate for a precise estimate.
Estimate taxes on a second home or investment property.
See how a high-tax state like New Jersey or Illinois affects affordability.
Compare your bill to the national average effective rate.
Translate an effective rate into dollars per $1,000 of home value.

Average effective property tax rate by state (selected), and tax on a $400,000 home

State	Effective rate	Annual tax on $400,000
New Jersey	2.38%	$9,520
Illinois	2.32%	$9,280
New Hampshire	2.15%	$8,600
Connecticut	1.98%	$7,920
Texas	1.68%	$6,720
New York	1.64%	$6,560
Ohio	1.53%	$6,120
Pennsylvania	1.49%	$5,960
Florida	0.91%	$3,640
California	0.75%	$3,000
South Carolina	0.57%	$2,280
Colorado	0.55%	$2,200
Alabama	0.43%	$1,720
Hawaii	0.28%	$1,120

Source: Tax Foundation / U.S. Census ACS average effective rates on owner-occupied housing. These are state averages; your county, city, and exemptions determine your actual bill.

How it works

How property tax is calculated

Annual property tax = Assessed/home value × effective tax rate
Monthly (escrow)    = Annual ÷ 12
Per $1,000 of value = effective rate × 10

The effective rate is property tax actually paid as a share of home value — it already blends the local mill rate and any assessment ratio, which makes it the fairest way to compare states.

Highest and lowest property tax states

State	Effective rate	Tax on a $400,000 home
New Jersey	2.38%	$9,520
Illinois	2.32%	$9,280
New Hampshire	2.15%	$8,600
Texas	1.68%	$6,720
National average	~0.90%	~$3,600
California	0.75%	$3,000
Alabama	0.43%	$1,720
Hawaii	0.28%	$1,120

Why 'no income tax' states can still be pricey

States like Texas and New Hampshire have no state income tax, but they lean on property tax to fund schools and services — so their property tax rates are among the highest. A low income-tax bill can be offset by a high property-tax bill, which is why total tax burden matters more than any single tax.

Worked example — comparing two offers

You are choosing between a $450,000 home in Ohio (1.53%) and one in Colorado (0.55%):

Ohio: $450,000 × 1.53% = $6,885/year (~$574/month).

Colorado: $450,000 × 0.55% = $2,475/year (~$206/month).

The Ohio home costs about $368 more per month in property tax alone — real money in your mortgage payment.

Important caveats

The state figures here are averages. Your actual bill depends on your county, city, and school district, plus:

Assessment ratio — some places tax a fraction of market value, not the full value.

Homestead exemptions — many states reduce the taxable value for a primary residence, seniors, veterans, or disabled owners.

Assessment caps — California's Prop 13, for example, limits how fast assessed value can rise, so long-time owners often pay far below the average.

For an exact number, check your local assessor's website or a recent tax bill, and enter that rate in the custom field.

Disclaimer

Educational estimate using average effective rates from Tax Foundation and U.S. Census data. Actual property taxes are set locally and vary by county, exemptions, and assessment practices. Verify with your county assessor.

Example: $400,000 home in New Jersey

New Jersey average effective rate: 2.38%.

Annual tax: $400,000 × 2.38% = $9,520.

Monthly escrow: $9,520 ÷ 12 = about $793.

The same home in Hawaii (0.28%) would owe just $1,120 a year.

About $9,520 per year ($793/month)

Frequently asked questions

How is property tax calculated?

Multiply your home's assessed value by the local effective tax rate. For example, a $400,000 home at a 1.5% rate owes $6,000 a year. The effective rate blends the local mill rate and assessment ratio, so it is the simplest way to estimate and compare bills.

Which states have the highest property taxes?

New Jersey (~2.38%), Illinois (~2.32%), New Hampshire (~2.15%), and Connecticut (~1.98%) have the highest average effective rates. On a typical home these states can mean $8,000–$10,000+ in annual property tax.

Which states have the lowest property taxes?

Hawaii (~0.28%) is the lowest, followed by Alabama (~0.43%), Louisiana (~0.51%), and Delaware/Colorado/Nevada (~0.55%). Hawaii's low rate is partly offset by very high home prices, so the dollar bill is not always as low as the rate suggests.

Do states with no income tax have higher property tax?

Often, yes. Texas and New Hampshire have no state income tax but rank among the highest property-tax states because local governments rely on property tax for schools and services. Always compare the total tax burden, not just one tax.

What is a homestead exemption?

A homestead exemption lowers the taxable value of your primary residence, reducing your bill. Amounts and eligibility vary widely by state, and many offer extra relief for seniors, veterans, and disabled homeowners. Check your county assessor to see what you qualify for.

Why is my bill different from this estimate?

This uses state averages. Your actual rate is set by your county, city, and school district, and depends on your assessment ratio and any exemptions. Two homes of equal value in the same state can have different bills. Use the custom rate field with your local rate for accuracy.

Is property tax included in my mortgage payment?

Usually. Most lenders collect 1/12 of your annual property tax each month into an escrow account and pay the bill for you. That is why your total monthly payment (PITI) is higher than principal and interest alone — this calculator shows that monthly escrow amount.

How often do property taxes go up?

Bills typically change yearly as assessments and local budgets change. Some states cap how fast assessed value can rise (California's Prop 13 limits it to 2% a year), while others reassess to market value regularly — which can cause bills to jump after home prices rise.

Sources & references

Methodology & trust

Editorial

Finance calculator with its formula verified automatically against Tax Foundation — How High Are Property Taxes in Your State?, per our editorial policy and methodology.

Updates

Updated: July 2026. Parameters are verified periodically against the cited sources.

Privacy

Calculations run 100% in your browser. We do not store or transmit your data.

Limitations

Indicative results. For critical decisions, consult a professional.

📌 How to cite this calculator

Rodríguez, M. (2026). Property Tax Calculator (by State). Hacé Cuentas. https://hacecuentas.com/en/property-tax-calculator-by-state-usa

Content licensed under CC-BY 4.0 — reuse it citing the source with a link to Hacé Cuentas.

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