Property tax hub: rates, assessments and estimates

Quick checklist

1. Get the parcel's taxable or assessed value, applicable exemptions or exclusions, and current rates from the local assessor or tax collector; do not assume the purchase price is the taxable value.
2. For a jurisdiction using a single taxable-value mill rate: estimated base tax = taxable value × combined mills ÷ 1,000. Use the jurisdiction's actual calculation if it has multiple tax bases, class rates or credits.
3. Add any separately billed special assessments and subtract applicable tax credits to reconcile your estimate with the official bill.
4. Annual tax ÷ 12 gives a monthly budgeting estimate, not necessarily the lender's escrow payment; confirm the lender's escrow analysis.

Sources: Minnesota Department of Revenue — Property Tax Calculation Workbook (example of state-specific assessment, rates and credits)

Property tax estimator

Enter home value, your county rate and exemptions.

Calculators for property tax projects

• Property Tax CalculatorCalculate annual and monthly property tax from an assessed value, tax rate and exemptions.
• Mortgage CalculatorEstimate the monthly principal, interest, tax, insurance, PMI and HOA cost of a home loan.
• Home Affordability CalculatorEstimate the home price your income, debts and down payment could support using DTI limits.
• Home Equity CalculatorCurrent equity, loan-to-value and how much you could borrow against your home.

In-depth guides

• How Property Taxes Are Calculated

  Tax = (assessed value - exemptions) x tax rate, where assessed value is often a fraction of market value and the rate is the sum of overlapping local levies. A $350,000 home assessed at 100% with a $25,000 homestead exemption and a combined 22-mill rate owes (350,000 - 25,000) x 0.022 = $7,150 per year.

Articles from the blog

• How to Estimate Property Tax on a House in the USProperty tax is assessed value times an assessment ratio times the local rate, minus exemptions. Here is how each piece is set in US counties.

Common questions

How is property tax calculated?

Taxable value (assessed value minus exemptions) × the combined local rate, often expressed in mills (1 mill = $1 per $1,000).

What is an effective tax rate?

Annual tax divided by market value — useful for comparing places with different assessment ratios.

Is property tax included in my mortgage payment?

Often, if your lender collects it through an escrow account along with homeowners insurance.