What is an effective property tax rate?

The effective rate is the actual percentage of a home's market value paid in property tax each year. It's different from the nominal millage rate because many states only tax a fraction of market value (the 'assessed value') rather than the full amount. Effective rates make state-by-state comparisons straightforward because they account for this difference.

Why do property tax rates vary so much between states?

Property tax is the primary funding mechanism for local government — schools, roads, emergency services. States that rely more heavily on income tax (like California) tend to have lower property taxes. States with no income tax (like Texas and Florida) lean harder on property taxes to fund the same services. The total tax burden across income, property, and sales tax tends to even out more than any single rate suggests.

What is a millage rate?

A millage rate expresses tax as dollars per $1,000 of assessed value. One mill equals $1 per $1,000, so a rate of 10 mills is equivalent to a 1% effective rate. Your total millage is the sum of rates from all taxing authorities that apply to your property — school district, city, county, and any special districts.

How often is property reassessed?

Reassessment schedules vary widely by state and county. Some jurisdictions reassess annually, others every three to five years. California is the notable exception: under Proposition 13, assessments are frozen at the purchase price and only updated when ownership changes. This is why a long-term California homeowner can owe much less than a recent buyer of a comparable home on the same street.

Can I appeal my property tax assessment?

Yes. Every county has an appeal process, and homeowners win a meaningful portion of appeals — particularly when they can show recent comparable sales that support a lower value. The window to file an appeal is usually 30 to 90 days from when you receive your assessment notice. Missing the deadline forfeits your right to appeal for that tax year.

What is a homestead exemption?

A homestead exemption reduces the assessed value used to calculate tax on your primary residence. For example, if your home is assessed at $300,000 and your state offers a $50,000 homestead exemption, you're only taxed on $250,000. Exemptions vary significantly by state — some are flat dollar amounts, others are percentage-based. Most require an application and proof of primary residence.

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Property Tax
Estimator

Enter a home value and pick a state — see your estimated annual tax bill, monthly escrow contribution, and how your state compares to the national average. Takes about 10 seconds.

All 50 statesAnnual + monthly outputNo data stored

Assessed Property Value ($)

Select Location benchmark

Escrow Warning

Your mortgage lender typically includes property taxes in your monthly payment ("Escrow"). Ensure your monthly estimated payment accounts for this annual burden.

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Tax Burden Estimator

Determine your annual property tax exposure across different US states.

How it works

What goes into your property tax bill

Property tax is calculated by multiplying your home's assessed value by the effective tax rate set by local authorities. In most states the assessed value is close to — but not always equal to — market value. Some states assess at 80% of market value, others at 100%, and a few use complex ratio systems. The effective rate this tool uses cuts through all of that complexity: it's the actual share of market value paid in tax, making cross-state comparisons clean and direct.

Your final bill is also shaped by exemptions — most states offer a homestead exemption that reduces the taxable value of your primary residence, sometimes by a flat dollar amount, sometimes by a percentage. Senior, veteran, and disability exemptions layer on top. This tool uses state-level effective rates that already reflect average exemption usage, so the estimate is realistic for a typical owner-occupied home.

Assessed value

The dollar figure your county tax assessor assigns to the property for tax purposes. May differ from appraised or market value depending on state law.

Millage rate

Tax expressed as dollars per $1,000 of assessed value. One mill = $1 per $1,000. Your total rate is the sum of school, city, and county mills.

Homestead exemption

A legal reduction in assessed value for your primary residence. A $50,000 exemption on a $300,000 home means you're taxed on $250,000.

Effective rate

The actual percentage of a home's market value paid in tax — after exemptions and any assessment ratios are applied. The most useful number for comparing states.

Why this matters

The cost most buyers underestimate

A fixed-rate mortgage payment never changes. Property tax does — and it starts the moment you buy. Most buyers focus on purchase price and interest rate while treating property tax as a rounding error. It isn't. On a $500,000 home, the difference between Hawaii's 0.29% and New Jersey's 2.23% is roughly $9,700 per year — nearly $810 added to your monthly PITI payment before insurance or maintenance enter the picture.

Example: $500,000 home across states

State	Eff. rate	Annual tax	Monthly escrow	vs. NJ
New Jersey	2.23%	$11,150	$929 / mo	—
Illinois	2.07%	$10,350	$863 / mo	−$800/yr
Texas	1.68%	$8,400	$700 / mo	−$2,750/yr
US Average	1.07%	$5,350	$446 / mo	−$5,800/yr
California	0.75%	$3,750	$313 / mo	−$7,400/yr
Alabama	0.43%	$2,150	$179 / mo	−$9,000/yr
Hawaii	0.29%	$1,450	$121 / mo	−$9,700/yr

Estimates use 2026 effective rates applied to full market value. Actual bills depend on local assessments and applicable exemptions.

Use cases

Who this tool is actually useful for

First-time buyers

Most buyers get their first real property tax estimate at closing — far too late to factor it into their budget. Running this before you make an offer gives you an accurate PITI number, so your monthly payment plan reflects reality from day one.

Start here

Interstate movers

If you're relocating from a low-tax state to a high-tax one (or vice versa), the difference in annual tax on a similar home can easily exceed $5,000. That gap affects both affordability and the comparative value of homes at similar price points.

Compare states

Mortgage pre-approval

Lenders calculate your debt-to-income ratio using PITI — principal, interest, taxes, and insurance. If you overestimate your budget based on P&I alone, you may qualify for less than expected. Know the 'T' before you apply.

DTI planning

Investment property screening

Gross rental yield looks different once property tax is subtracted. A property in Texas at 1.68% costs meaningfully more to carry than a comparable one in Florida at 0.89% — use this to filter before you underwrite.

Investor tool

State comparison

The full spectrum — from Hawaii to New Jersey

The gap between the lowest and highest state effective rates is wider than most people realize. What drives the difference isn't necessarily the quality of public services — it's how each state chooses to fund them. States with robust income taxes tend to ease off property taxes; states with no income tax lean on property and sales tax instead. Always model the full tax picture — income, property, and sales — when comparing cost of living across states.

New JerseyHighest

2.23%

IllinoisVery High

2.07%

ConnecticutHigh

1.79%

TexasHigh

1.68%

NebraskaHigh

1.61%

US AverageBenchmark

1.07%

FloridaModerate

0.89%

CaliforniaLow

0.75%

AlabamaVery Low

0.43%

HawaiiLowest

0.29%

2026 effective rates (tax paid ÷ market value). Source: ATTOM Data Solutions, state revenue department averages.

Practical guidance

Things worth knowing before you close

Supplemental tax bills arrive after closing

When you buy a home, the county often issues a supplemental bill for the portion of the tax year between your purchase date and the next regular billing cycle — at your new assessed value. These bills typically land 3–6 months after closing and range from a few hundred to several thousand dollars. They're one-time, but they're real. Budget for them.

Your lender's escrow estimate may be off

Mortgage lenders are required to provide a good-faith escrow estimate, but they use the current assessed value — which may be the previous owner's assessed value, not yours. After your first full year, the county will reassess at your purchase price, and your escrow will adjust. The first adjustment is often a significant increase. This is not an error; it's the system working correctly.

You can appeal — and it's worth doing

If you believe your assessed value is too high relative to comparable sales in your area, you have the right to appeal. Success rates vary but are meaningful enough that a one-hour effort is often worth it. The window to file is narrow — typically 30 to 90 days from the date of your assessment notice — so don't wait. Missing the deadline means waiting until next year.

California's Proposition 13 works differently

In California, assessed value is locked at the purchase price and can only increase by 2% per year, regardless of what the market does. This means a neighbor who bought 15 years ago can owe a fraction of what you owe on an identical home. It also means your tax bill is highly predictable — it won't spike if the market surges. When comparing California to other states, use your purchase price, not comparable market values.

Check for exemptions you may qualify for

Homestead, senior, veteran, disability, and agricultural exemptions can meaningfully reduce your bill. Most require an active application — they aren't applied automatically. Application deadlines are typically in the first quarter of the tax year. Check your county assessor's website in the first year of ownership to confirm which exemptions apply and whether you need to file.

FAQ

Common questions

What is an effective tax rate?

It's the share of a home's market value paid in property tax each year, after exemptions and assessment ratios are applied. It's the simplest way to compare tax burdens across states that all have different assessment rules.

Why does Texas have high property taxes if there's no income tax?

Property tax is the primary funding mechanism for Texas schools and local services. Without a state income tax, counties lean harder on property and sales tax to pay for the same infrastructure. The total tax burden is more balanced than the individual rates suggest.

How accurate is this estimator?

It uses 2026 state-level effective rate averages, which are accurate for planning purposes. Your actual bill will depend on your county's specific rate, your property's assessed value, and any exemptions you qualify for. Local variation within a state can be significant.

What is PITI?

PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a monthly mortgage payment. Lenders calculate your debt-to-income ratio based on your total PITI, which is why knowing your property tax before applying for a mortgage matters.

Is my financial data stored anywhere?

No. All calculations run in your browser. The home values and state selections you enter are never sent to Kodivio's servers, logged, or shared. Closing the tab clears everything.

What's a millage rate?

A millage rate expresses tax as dollars per $1,000 of assessed value. One mill equals $1 per $1,000. Your total millage is the combined rate from your school district, city, county, and any special taxing districts that apply to your property.

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Your data stays on your device

Property values and financial plans are sensitive. Every calculation in this tool runs entirely in your browser — no home values, state selections, or tax projections are transmitted to Kodivio's servers or shared with any third party. Most online property tools harvest search inputs to generate mortgage or realtor leads. This tool does not. There are no tracking cookies tied to your inputs and no lead-generation tied to your results.

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