Tool · Investor Sam Home

Property Tax Calculator

June 30, 2026 • By the Investor Sam Editorial Team • Reviewed by Berly Sam Varghese, Editor
Property tax is charged as a mill rate — dollars of tax per $1,000 of assessed value — applied to your home minus any exemptions you qualify for, such as a homestead exemption. This calculator converts an assessed value and mill rate into your annual and monthly tax and shows your effective rate as a percentage of the home value, so you can compare tax burdens across towns and budget the escrow portion of your mortgage payment.

Example: Assessed value: 380000 $ · Mill rate (per $1,000): 18 mills · Exemptions (e.g. homestead): 25000 $

Annual property tax$6,390
Monthly escrow amount$532
Effective tax rate1.68%

Worked example

A home assessed at $380,000 in a town with an 18-mill rate and a $25,000 homestead exemption is taxed on $355,000. At 18 mills that is 18 times 355, or about $6,390 a year — roughly $533 a month set aside in escrow. As a share of the full $380,000 value, that is an effective rate near 1.68%, a useful figure for comparing this home against one in another district.

Frequently asked questions

What is a mill rate?

A mill is one dollar of tax per $1,000 of assessed value. A rate of 18 mills means $18 of tax for every $1,000 assessed. Multiply the mill rate by the taxable value in thousands to get the annual tax.

Is assessed value the same as market value?

Not always. Many jurisdictions assess at a percentage of market value or reassess on a lag, so the assessed value on your tax bill can differ from what the home would sell for. Use the assessed value from your tax record here.

What is a homestead exemption?

Many states reduce the taxable value of a primary residence by a fixed exemption, lowering your bill. Amounts and eligibility vary by state, so check your local assessor and enter the exemption you actually qualify for.

Why does my lender collect property tax monthly?

Lenders escrow property taxes by collecting one-twelfth of the annual bill each month and paying the county when it comes due, ensuring the taxes that secure their lien are never missed. That monthly figure is the second result here.

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Sources

Berly Sam Varghese · Editor, Investor Sam

Berly Sam Varghese is an engineer who treats money the way he treats any hard problem — something to be engineered, not gambled on. He funded years of education and built real financial stability the patient way, by living below his means and investing rather than borrowing. He writes for the person trying to make a home a sound decision, not just a purchase. He reviews and approves every article on Investor Sam and checks the figures against primary sources before anything is published. More about our standards.