What is an effective property tax rate?

Effective rate is the annual property tax divided by home value. It accounts for the assessment ratio (your home may be assessed at less than market value) and any state-level caps or exemptions. Statutory rates can look much higher than effective rates — only the effective rate matters for what you actually pay.

How are property taxes paid?

Most homeowners pay through an escrow account: each month, your mortgage servicer collects 1/12 of the annual tax along with your principal and interest. Twice a year (or annually) they pay the local taxing authority. If you do not have a mortgage, you typically pay the county directly.

Can my property tax go up?

Yes — usually when assessments are reset (often every 1-5 years depending on state). Some states cap annual increases: California's Prop 13 limits increases to 2% per year. Most states have no such cap, which is why moving to a higher-tax state means your tax bill grows with home appreciation.

Are the results personalized financial advice?

No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.

What should I do after seeing the result?

Use the recommendation module on this page to compare mortgage rates, or run Money Map to compare this home & mortgage decision with your other opportunities.

How does SwitchWize choose related offers?

Related offers are matched by the calculator surface (mortgage) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.

How fresh are the rates and offers shown?

Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.

Where can I see the ranking methodology?

The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.

Can Money Map use this result?

Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Property Tax Calculator — Annual Tax by Home Value and State Rate

Estimate annual property tax, monthly escrow, and lifetime property tax cost based on your home value and local rate.

Annual Property Tax

$4,400

Annual Property Tax

$4,400

Taxable Assessed Value

$400,000

Monthly Escrow Add-On

$367

10-Year Tax Cost

$44,000

Taxable Assessed Value: $400,000Annual Property Tax: $4,400Monthly Escrow Add-On: $36710-Year Tax Cost: $44,000

30-Year Tax Cost

$132,000

Diagnostic

On a $400,000 home at 1.10%, your annual property tax is $4,400 — or $367/month added to your mortgage escrow.

Over 30 years that is $132,000 before any rate increases. Rates reset every 1–5 years in most states.

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What to do next

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This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

Coach Insight

Property tax is the most-underestimated cost of homeownership. Effective rates vary 10x across the US — New Jersey averages 2.46% while Hawaii is 0.31%. On a $500K home that is $12,300/year in NJ versus $1,550 in HI. If you are house-shopping across metros, running this for each candidate is the difference between a comfortable budget and a surprise escrow shortfall.

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Mortgage rates depend on loan type (30-yr fixed, 15-yr fixed, ARM, FHA, VA, jumbo), your credit score, down payment, points paid, loan amount, property state, and whether you're purchasing or refinancing. The calculator above uses a representative market rate for payment estimates — your actual rate will vary.

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Frequently Asked Questions

Everything you need to know.

Why This Matters

How to Use It

1Enter your home value (use assessed value if known, otherwise market value)
2Set the local effective property tax rate (see hint for state medians)
3Apply a homestead exemption if your state offers one and the home is your primary residence
4See annual tax, monthly escrow add-on, and 30-year cost

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