Property Tax Calculator
Estimate your annual property tax bill using 2026 effective rates from the Tax Foundation for all 50 states and DC. Includes homestead exemption adjustment, 5-year projection, and comparison against the national average of 1.01%.
Last updated: April 2026 · Source: Tax Foundation 2025/2026 effective property tax rates
100 if assessed at full market value; lower for CA (Prop 13), AR (20%)
Highest and lowest property tax states
| 1. NJ | 2.23% | $8,920 |
| 2. IL | 2.08% | $8,320 |
| 3. NH | 1.93% | $7,720 |
| 4. CT | 1.92% | $7,680 |
| 5. VT | 1.83% | $7,320 |
| 6. TX | 1.68% | $6,720 |
| 7. NE | 1.63% | $6,520 |
| 8. WI | 1.61% | $6,440 |
| 9. OH | 1.59% | $6,360 |
| 10. NY | 1.54% | $6,160 |
| 1. HI | 0.28% | $1,120 |
| 2. AL | 0.4% | $1,600 |
| 3. CO | 0.49% | $1,960 |
| 4. LA | 0.55% | $2,200 |
| 5. NV | 0.55% | $2,200 |
| 6. DC | 0.57% | $2,280 |
| 7. SC | 0.57% | $2,280 |
| 8. DE | 0.58% | $2,320 |
| 9. UT | 0.58% | $2,320 |
| 10. WY | 0.58% | $2,320 |
Dollar amounts assume your entered home value of $400,000. Source: Tax Foundation effective property tax rates by state (2025/2026 data).
Frequently asked questions
How is property tax calculated?
Property tax equals your home's assessed value multiplied by the local tax rate (called the "mill rate" in many jurisdictions). A mill is one-thousandth of a dollar, so a mill rate of 20 means $20 in tax per $1,000 of assessed value. Assessed value often differs from market value — some states assess at 100% of market value, others use a fraction (California at 1% of original purchase price, for example). Deductions for homestead exemptions, senior exemptions, or veteran exemptions reduce the taxable amount before the rate is applied.
Which state has the highest property tax?
New Jersey has the highest effective property tax rate in the U.S. at approximately 2.23% in 2026 (Tax Foundation 2025 data). On a $400,000 home, that equals about $8,920 per year. Illinois is second at 2.08%, followed by New Hampshire (1.93%), Connecticut (1.92%), and Vermont (1.83%). These high rates are driven mostly by heavy reliance on property taxes to fund local public schools, since these states provide less state-level education funding than others.
Which state has the lowest property tax?
Hawaii has the lowest effective property tax rate at around 0.28% in 2026. On a $400,000 home that equals about $1,120 per year — though Hawaii's median home values are much higher than most states, so actual dollar bills are not the lowest. Alabama is next at about 0.40%, followed by Louisiana (0.55%), Delaware (0.58%), and West Virginia (0.59%). Alabama has the lowest typical dollar amount because it combines a low rate with relatively affordable home values.
What is a homestead exemption?
A homestead exemption reduces the taxable value of your primary residence by a fixed amount or percentage. Most states offer one, but the amount varies dramatically: Florida offers up to $50,000 off assessed value, Texas offers $100,000 for school district taxes as of 2023, Mississippi offers $7,500, and many states offer additional exemptions for seniors, veterans, and disabled homeowners. You typically must apply once with your county tax assessor — it is not automatic. Make sure to apply the year you move in.
How is assessed value different from market value?
Market value is what your home would sell for today — what you see on Zillow, Redfin, or a professional appraisal. Assessed value is the number your local tax assessor places on your property for tax purposes. In many states assessed value equals 100% of market value, but some states assess at a fraction (Arkansas at 20%, for example, or California where Prop 13 locks assessed value at purchase price plus 2% annual increase). Always check your county's assessment ratio before estimating your tax bill.
How often does my property tax change?
Property tax bills can change annually due to two factors: (1) reassessment of your home value, which varies by state from annual (Arkansas, Connecticut) to every 5 years (Maryland) to only on sale (California under Prop 13), and (2) changes in the local millage rate set by county commissioners, school boards, and city councils. In rising real estate markets, your assessed value typically goes up every year or every reassessment cycle, which increases your tax even if the millage rate stays flat.
Can I appeal my property tax assessment?
Yes, and you should if you believe your assessment is too high. Every state has an appeal process — typically you file with the county board of equalization within 30-90 days of receiving your assessment notice. Successful appeals usually show comparable homes that sold for less, errors in the property record (wrong square footage, wrong number of bathrooms), or damage that reduces value. About 20-40% of appeals succeed, and the average successful appeal saves several hundred to several thousand dollars. Many homeowners use property tax consultants who work on contingency (they take 30-50% of the savings).
Are property taxes deductible on my federal return?
Property taxes are deductible as part of the SALT (State and Local Tax) deduction on Schedule A if you itemize. Under the OBBBA (July 2025), the SALT cap increased from $10,000 to $40,000 for 2026, which is a significant expansion. For taxpayers in high property tax states like New Jersey, Connecticut, and New York, this increase substantially improves itemization benefits. The deduction is only valuable if your total itemized deductions exceed the standard deduction of $16,100 single or $32,200 married.
What happens if I cannot pay my property taxes?
Unpaid property taxes trigger a tax lien on your property and, eventually, a tax sale or foreclosure. Timelines vary by state, but typically: (1) 30-60 days past due you accrue interest and penalties (often 1-2% per month), (2) after 1-3 years of delinquency the taxing authority can sell a tax lien certificate to investors, (3) after 2-5 years of continued delinquency the lienholder can foreclose and take title to the property. Most states offer payment plans, hardship programs, or senior freezes before reaching foreclosure. Contact your county treasurer immediately if you fall behind.
Why do two identical houses on the same street have different property tax bills?
Several reasons: (1) Different purchase dates — California Prop 13 locks assessed value at purchase price, so longtime owners pay much less than new buyers on identical homes. (2) Different exemptions — one homeowner may have homestead, senior, or veteran exemptions the other does not. (3) Reassessment timing — assessments happen on different cycles and one may be more recent. (4) Appeal history — one owner may have successfully appealed. (5) Improvements not yet reassessed — renovations typically trigger reassessment, but timing varies. Always look at the specific assessment rather than assuming identical homes pay identical tax.
How does property tax affect my mortgage payment?
Most mortgage lenders require property tax to be paid through an escrow account. Your lender collects 1/12 of your annual property tax with each monthly mortgage payment, holds it in escrow, and pays the county tax bill when due. This is why your total monthly payment (PITI — principal, interest, taxes, insurance) is higher than just the principal and interest. Escrow accounts are adjusted annually based on actual tax bills, so if rates rise you will see a mortgage payment increase. Some loans allow you to waive escrow with a 20%+ down payment and pay taxes yourself.
Do renters pay property tax?
Indirectly, yes. Landlords factor property tax into the rent they charge, so renters pay the tax through their monthly rent even though the tax bill is in the landlord's name. In states with high property tax like New Jersey and Illinois, this can add $200-500/month to apartment rent compared to low-tax states. Some states offer renter tax credits to offset this: California's Renter's Credit, Minnesota's Homestead Credit Refund, and Indiana's Renter's Deduction are examples. These typically range from $50-500 depending on income and state.
Data sources: Tax Foundation, "Property Taxes by State and County, 2026"; U.S. Census Bureau American Community Survey; state Department of Revenue data.
Last updated: April 2026. Property tax rates are effective rates (median property tax paid divided by median home value) and represent statewide averages. County and city rates vary significantly within each state.
Disclaimer: This calculator provides estimates based on statewide averages. Your actual property tax depends on your specific county, school district, city, assessed value, and any exemptions you qualify for. Contact your county assessor for exact figures.