Property Tax in the US (2025)
Property tax is the primary revenue source for local governments, schools, and fire districts. It is assessed annually as a percentage of your home's assessed value — which may differ from the market value.
How effective rates work
An effective rate is the actual tax paid divided by the home's market value. It accounts for partial assessments (some counties assess at 60–80% of market value) and exemptions already baked in at the county level.
State averages vs. your actual bill
State averages mask huge variation within a state. New Jersey averages 2.34%, but some NJ counties exceed 3% while others are under 2%. Texas averages 1.80%, but Travis County (Austin) runs closer to 2.2%.
Always check your county assessor's website for the exact millage rate applied to your parcel.
Homestead & other exemptions
Most states offer a homestead exemption — a fixed dollar reduction in assessed value for your primary residence. Common amounts:
- Texas: $100,000 homestead exemption (2023 ballot measure)
- Florida: $50,000
- Georgia: $2,000–$10,000 (varies by county)
- California: $7,000 (Prop 13 base; assessment increases capped at 2%/year)
Enter your exemption in the "Exemptions" field to see your net tax bill.
Escrow
If you have a mortgage, your lender typically collects 1/12 of the estimated annual property tax each month in an escrow account and pays the county directly. This is the "monthly escrow amount" shown above.