Property tax calculator
Estimated property tax with the assessment ratio, exemptions and any assessment cap applied.
Estimated annual property tax
Estimate$5,056.00
1.20% of market value, or 421 a month
- Assessed value
- $420,000
- Homestead exemption
- $100,000
- Saved by the assessment cap
- $0.00
| Market value | $420,000 |
|---|---|
| Assessed at 100.00% | $420,000 |
| Homestead exemption | -$100,000 |
| Taxable value | $320,000 |
| Annual tax | $5,056.00 |
- Rates are state medians and indicative only. Property tax is set by counties, cities and school districts, so your actual millage comes from your assessor rather than any state figure.
- No income tax, high property tax. A $100,000 school-district homestead exemption and a 10% annual assessment cap.
A $100,000 homestead exemption comes off assessed value before the rate, so it is worth roughly $1,580 a year rather than $100,000.
How this is calculated
How this is calculated
Assessed value is rarely market value
Colorado assesses residential property at about 6.81% of market value and Illinois at a third, so applying a published rate to market value overstates the bill by a factor of three or more.
tax = (market × assessment ratio − exemption) × millageExemptions are worth the rate applied to them
A $100,000 homestead exemption at a 1.58% effective rate saves about $1,580 a year, not $100,000. It reduces the taxable base rather than the bill.
Growth caps create very unequal bills
Where assessment growth is capped — 2% in California, 3% in Florida — a long-held home is assessed far below an identical recently-sold one, and the two owners pay very different amounts.
Worked example: $420,000 home, primary residence, just purchased
| Market value | $420,000 |
|---|---|
| Homestead | Yes |
| Exemption | $100,000 |
|---|---|
| Taxable value | $320,000 |
Property tax structures differ by country and often by locality. Pick a country above for the mechanics that apply where you own.
What this assumes
- Regional median rates rather than your locality.
- A single owner-occupier exemption.
- Assessment caps applied from purchase.
- No additional exemptions claimed.
Where this commonly goes wrong
- Local authorities usually set their own rates, so neighbouring areas can differ by more than a percentage point.
- A sale often resets a capped assessment to the purchase price, sharply raising the new owner’s bill.
- Lender escrow estimates are frequently based on the previous owner’s assessment rather than yours.
Questions
Why is the tax not simply a rate times the price?
Because assessed value usually differs from market value, and exemptions come off before the rate. Colorado assesses at about 6.81% of market value, so applying a rate to the price overstates the bill several-fold.
What does an exemption actually save?
The rate applied to the exempt amount. A $100,000 exemption at a 1.58% effective rate saves about $1,580 a year, because it reduces the taxable base rather than the bill itself.
Why do identical homes pay different amounts?
Assessment caps. Where growth in assessed value is limited — 2% in California, 3% in Florida — a long-held home falls far below market value while a recently sold one is reset to its purchase price.
Related tools
Sources
Estimate only, based on published IRS figures for the current period. Not tax or legal advice. Confirm your position with the IRS, a CPA, or an enrolled agent.
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