Property Tax Estimator Formula
Understand the math behind the property tax estimator. Each variable explained with a worked example.
Formulas Used
Annual Property Tax
annual_tax = taxable_value * tax_rate / 100Monthly Tax (Escrow)
monthly_tax = taxable_value * tax_rate / 100 / 12Effective Rate
effective_rate = home_value > 0 ? taxable_value * tax_rate / 100 / home_value * 100 : 0Variables
| Variable | Description | Default |
|---|---|---|
home_value | Assessed Home Value(USD) | 350000 |
tax_rate | Local Tax Rate (mill rate)(%) | 1.2 |
exemption | Homestead Exemption(USD) | 0 |
taxable_value | Derived value= max(home_value - exemption, 0) | calculated |
How It Works
Property Tax Calculation
Annual Tax = (Home Value - Exemptions) x Tax Rate
Property tax rates vary widely by location. The US average is about 1.1% of assessed value.
Tax Rate Examples
Worked Example
$350,000 home, 1.2% rate, no exemption.
home_value = 350000tax_rate = 1.2exemption = 0
- 01Annual tax = $350,000 x 1.2% = $4,200
- 02Monthly escrow = $4,200 / 12 = $350
Frequently Asked Questions
What is a homestead exemption?
Many states offer a homestead exemption that reduces the taxable value of your primary residence. For example, Texas has a $100,000 school tax exemption.
How are property taxes assessed?
A local assessor determines property value, typically every 1-5 years. You can appeal if you believe the assessment is too high.
Are property taxes deductible?
Yes, up to $10,000 combined with state income taxes (SALT deduction cap). This is an itemized deduction.
Ready to run the numbers?
Open Property Tax Estimator