How is property tax calculated?

Property Tax = Assessed Value × Tax Rate. For a $400k home at 1.5% rate with 100% assessment: $400k × 1.5% = $6,000/year ($500/month).

What states have highest property taxes?

New Jersey (2.49%), Illinois (2.27%), New Hampshire (2.18%). Hawaii (0.28%) and Alabama (0.41%) are lowest.

Yes, but capped at $10,000/year under SALT deduction limits since 2018.

Yes. Taxes rise with home value reassessments, rate increases, or special assessments. Budget 3-5% annual increases.

Home / Finance / Property Tax Calculator

Calculate your property tax based on home value and tax rate.

Home Value ($)

Property Tax Rate (%)

Assessment Ratio (%)

Annual Property Tax

Monthly

Quarterly

Assessed Value

$400k home. Mortgage: $2,200/mo. Property tax at 1.5%? +$500/mo you didn't budget. Real payment: $3,050 (39% increase).

National avg: 1.1%. NJ: 2.49%. Hawaii: 0.28%. $500k house = $12,450/yr in NJ vs $1,400 in HI ($920/mo difference).

David Chen,CFA: "Property tax can kill your deal."

Budget 3-5% annual increases. $500/mo today = $650 in 5 years.

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Reviewed by David Chen, CFA

November 2025