Why property taxes matter for affordability
Property taxes are a recurring cost that gets bundled into most mortgage payments through an escrow account — meaning they directly affect how much home you can afford, not just your bill after you own it. This calculator applies an effective tax rate to your home value to estimate that ongoing cost.
A worked example
A $350,000 home at a 1.1% effective tax rate — close to the national average — runs about $3,850/year, or roughly $321/month. The same home at a 2.2% rate, common in higher-tax states, runs about $7,700/year, or $642/month — over $300/month more, enough on its own to change what home price fits your budget. Property tax rate matters as much as home price when comparing affordability across different states or counties.
How mill rates work
Many counties express property tax as a "mill rate" rather than a percentage — one mill equals $1 of tax per $1,000 of assessed value. A mill rate of 22, for example, is equivalent to a 2.2% effective rate. If your local assessor quotes a mill rate, divide it by 10 to get the percentage this calculator expects (22 mills ÷ 10 = 2.2%).
Finding your actual rate
The most accurate source for your property tax rate is your county or municipal tax assessor's website, which will list current mill rates or effective rates for your specific area. The state averages shown in this calculator are for general reference only — actual rates can vary significantly even between neighboring towns, and some areas layer on additional school district or special assessment taxes.
Curious how property tax fits into your full monthly payment? See the Mortgage Calculator or the Monthly Payment Calculator.