Property tax calculator
Estimated property tax with the things that actually determine it — the assessment ratio, your homestead exemption and any assessment cap.
Covers 2026 · rates as at 2026-01-01
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.
On $420,000 in Texas the $100,000 homestead exemption comes off the 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
The bill is not rate times price
Colorado assesses residential property at about 6.81% of market value and Illinois at a third. Applying a published rate directly to market value in those states overstates the bill by a factor of three or more.
tax = (market × assessment ratio − exemption) × millageAn exemption is worth the rate, not the amount
Texas exempts $100,000 of assessed value for a homestead. At a 1.58% effective rate that is worth about $1,580 a year — real money, but two orders of magnitude below the headline number.
Assessment caps decouple neighbours
California caps assessment growth at 2% a year and Florida at 3%. After 20 years of faster market growth, a long-held home is assessed far below an identical house next door that just sold — the single largest driver of unequal bills.
assessed = purchase price × (1 + cap)^yearsWorked example: $420,000 home in Texas, primary residence, just purchased
| State | Texas |
|---|---|
| Market value | $420,000 |
| Homestead | Yes |
| Exemption | $100,000 |
|---|---|
| Taxable value | $320,000 |
| Effective rate | About 1.58% |
The same $420,000 home in Hawaii would be taxed at roughly a fifth of the Texas rate — property tax varies more between states than income tax does.
What this assumes
- State median rates, not your specific jurisdiction.
- A single homestead exemption where one applies.
- Assessment cap applied from purchase.
- No senior, veteran or disability exemptions.
Where this commonly goes wrong
- Rates are set by counties, cities and school districts independently, so two homes a mile apart in the same state can differ by more than a percentage point.
- Buying resets the assessed value to the purchase price in capped states, which is why a newly bought home often pays several times what the neighbours do.
- Escrow estimates from a lender are frequently based on the seller’s capped assessment, so the first post-purchase bill can be a large and unwelcome surprise.
Questions
How is property tax calculated?
Assessed value less any exemption, multiplied by the local millage. Assessed value is often well below market — about 6.81% in Colorado and a third in Illinois — so applying a rate to the purchase price is wrong.
How much is a homestead exemption worth?
The rate applied to it, not the amount. Texas exempts $100,000 of assessed value, which at a 1.58% effective rate saves roughly $1,580 a year rather than $100,000.
What is Proposition 13?
A California measure capping assessed value growth at 2% a year until the property changes hands. After decades of faster market growth it means long-held homes are assessed far below market value.
Why is my property tax higher than my neighbour’s?
Almost always because you bought more recently. In capped states a sale resets the assessment to the purchase price, so an identical house held for twenty years can be assessed at a fraction of yours.
Which states have the highest property tax?
New Jersey and Illinois are consistently at the top at above 2% of market value, while Hawaii is the lowest at under 0.3%. Property tax varies far more between states than income tax does.
Can I appeal my assessment?
Yes, and it is often worthwhile. Appeals contest the assessed value rather than the rate, and a successful one compounds — it lowers the base every future year, not just the year appealed.
Related tools
Sources
Estimate only, based on published IRS figures for 2026. Not tax or legal advice. Confirm your position with the IRS, a CPA, or an enrolled agent.
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