US Property Tax Explained: Assessed Value and Rates
How property tax is calculated from assessed value and the local rate, why rates vary so much by location, and how it fits into your housing budget.
How it is calculated
Annual property tax = assessed home value × local tax rate. The assessed value may differ from the market price depending on your jurisdiction.
Rates vary widely
Property tax is set locally, so effective rates range from well under 1% to over 2% depending on the state, county and city. Enter your local effective rate for an accurate estimate.
Part of your housing cost
Lenders often collect property tax monthly through an escrow account alongside your mortgage payment, so it is part of your true monthly housing cost.
FAQ
Is assessed value the same as market value?
Not necessarily. Many areas assess at a ratio of market value or reassess on a schedule.
Can property tax change?
Yes — reassessments and local rate changes can raise or lower it over time.
Related calculators
Last updated: 2026-07-25 · This content is a 2026 reference and may differ from actual rules and rates.