Property Tax Calculator
How it works
The annual tax is simply the assessed value multiplied by the tax rate: a $300,000 assessed value at a 1.2% rate owes $3,600 for the year. Since most homeowners think about this bill monthly — and it is often collected that way through a mortgage escrow account — the annual figure is also divided by 12.
Frequently asked questions
What does "assessed value" mean, and why is it different from market value?
Assessed value is the figure your local tax authority uses to calculate property tax, and it is not always the same as what the home would sell for. Some jurisdictions assess at full market value; others assess at a set fraction of it (say, 40% or 60%) by law. There is no single national convention, so check your county or municipal assessor's notice for the number they actually use rather than assuming it matches a recent appraisal or sale price.
Why do property tax rates vary so much from place to place?
Property tax funds local services — schools, roads, fire and police departments, libraries — and each city, county or district sets its own rate to cover its own budget. There is no single national property tax rate; two homes of identical value a few miles apart, in different taxing districts, can owe very different amounts.
How does this relate to the property tax field on the Mortgage Calculator?
The Mortgage Calculator takes an annual property tax figure and folds it into one total monthly payment alongside principal, interest, insurance and PMI. This tool does the opposite: it is for working out the annual or monthly property tax on its own — useful before you have settled on a mortgage, or for a home you already own outright.