Property Tax Estimation: County Variations & Basics

Property taxes are one of the largest components of your monthly housing payment, and they vary significantly by location. Understanding how they work helps you budget accurately.

How Property Taxes Are Calculated

Property tax = Assessed Value x Tax Rate (mill rate). Most counties assess property value at a percentage of market value. Tax rates typically range from 0.5% to 2.5% of assessed value.

State Variations

Property tax rates vary widely by state. New Jersey, Illinois, and New Hampshire have some of the highest rates (over 2%), while Hawaii, Alabama, and Louisiana have some of the lowest (under 0.5%).

Impact on Your Mortgage Payment

On a $400,000 home, property taxes add $167-$833 per month depending on your location's rate (0.5%-2.5%). Most lenders collect property taxes monthly via escrow and pay them on your behalf.