How Property Taxes Are Calculated
7 min
The Basic Formula
Property Tax = Assessed Value × Mill Rate. The assessed value is determined by your county assessor, typically a percentage of market value. One mill equals $1 per $1,000 of assessed value.
Assessment vs Market Value
Assessed value is often lower than market value due to assessment caps (like California's Prop 13) or different valuation methodologies.
Mill Rates Explained
Mill rates vary by locality and are set by school districts, counties, and municipalities. High mill rates in areas with lower home values can still result in high tax bills.
Tip
Tax laws vary by state and change frequently. Use our calculators for the most up-to-date rates and estimates for your specific situation.
Related Guides
Appealing Your Property Tax Assessment
If you believe your property has been over-assessed, you have the right to appeal. Here's a step-by-step guide.
Homestead Exemptions by State
Homestead exemptions protect a portion of your home's value from property taxes. Learn what each state offers.