Property Tax Estimator Formula

Understand the math behind the property tax estimator. Each variable explained with a worked example.

Use the Property Tax Estimator

Formulas Used

Annual Property Tax

annual_tax = taxable_value * tax_rate / 100

Monthly Tax (Escrow)

monthly_tax = taxable_value * tax_rate / 100 / 12

Effective Rate

effective_rate = home_value > 0 ? taxable_value * tax_rate / 100 / home_value * 100 : 0

Variables

VariableDescriptionDefault
home_valueAssessed Home Value(USD)350000
tax_rateLocal Tax Rate (mill rate)(%)1.2
exemptionHomestead Exemption(USD)0
taxable_valueDerived 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

| State | Avg Rate | |---|---| | New Jersey | 2.23% | | Texas | 1.80% | | California | 0.73% | | Hawaii | 0.29% |

Worked Example

$350,000 home, 1.2% rate, no exemption.

home_value = 350000tax_rate = 1.2exemption = 0
  1. 01Annual tax = $350,000 x 1.2% = $4,200
  2. 02Monthly escrow = $4,200 / 12 = $350

Ready to run the numbers?

Open Property Tax Estimator