Enter your home value, assessed value ratio, and property tax rate to calculate your annual and monthly property tax. Adjust the exemption amount to reflect any homestead or senior deductions you qualify for — your estimated tax bill updates automatically.
Estimated Annual Property Tax
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Monthly Property Tax
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Assessed Value
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Taxable Value (After Exemptions)
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Effective Tax Rate on Market Value
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Property taxes are annual taxes levied by local governments based on the value of real estate you own. They are calculated by multiplying your property's assessed value (a percentage of market value set by your local assessor) by the local tax rate. For example, a home with a $350,000 market value, a 33.33% assessment ratio, and a 2.07% tax rate would have an annual tax of approximately $2,414.
Property taxes fund essential local government services, including public schools, police and fire departments, road maintenance, libraries, parks, and other community infrastructure. The exact allocation varies by county and municipality, but education typically receives the largest share of property tax revenue.
Common property tax exemptions include the homestead exemption (for primary residences), senior citizen exemptions, veteran or disabled veteran exemptions, and agricultural land exemptions. These exemptions reduce the taxable assessed value of your property, lowering your overall tax bill. Eligibility rules and exemption amounts vary significantly by state and county.
Most local governments reassess property values annually or every few years, depending on the jurisdiction. Some states like Illinois reassess every three years, while others do it every year. You'll typically receive a notice of assessment before your tax bill is issued, giving you an opportunity to appeal if you believe the valuation is inaccurate.
Yes. Property taxes can rise even if your home's assessed value doesn't change. Local governments can increase the tax rate (mill rate) to fund budget needs, or voter-approved levies can add to your bill. Some states have laws like Illinois's Property Tax Extension Limitation Law (PTELL) that cap how much property tax extensions can grow each year.
Unpaid property taxes typically accrue interest and penalties. If left unresolved, the local government can place a tax lien on your property. Eventually, the government may initiate a tax sale or foreclosure to recover the unpaid taxes. It's important to contact your local tax authority immediately if you're struggling to pay, as many jurisdictions offer payment plans or hardship programs.
Often yes. Most mortgage lenders require borrowers to pay into an escrow account each month, which covers property taxes and homeowner's insurance. The lender pays the tax bill on your behalf when it comes due. If you own your home outright or have a loan without escrow, you'll need to pay your property tax bill directly to the local government.
Market value is the estimated price your home would sell for on the open market. Assessed value is the value assigned by your local tax assessor for tax purposes, often a set percentage of market value called the assessment ratio. For example, in Illinois the assessment ratio is approximately 33.33%, meaning a $300,000 home has an assessed value of roughly $100,000 for tax purposes.