Property Tax Calculator

To use the property tax estimator:

• Enter the home's market (appraised) value.
• Enter the assessment ratio for your property. In Alabama, for example, that is 10% for an owner-occupied home and 20% for a rental; some states assess at 100% of value.
• Tick Apply Homestead Exemption if you qualify, and enter the exemption in dollars of assessed value.
• Enter the millage rates for your county, city, school district and any other levies. Leave a field at 0 if it does not apply.
• Read the assessed value, taxable value, the tax for each levy, the annual total and the effective tax rate. The results update as you type.

Example 1: rental property, no exemption.

Example 2: owner aged 65 or older with a full exemption (Alabama H-3).

The calculator subtracts one exemption from every levy. Where an exemption is different for each levy, as with Alabama's H-1, work out the savings by hand as shown in the step-by-step section below.

Property tax, also called ad valorem tax, is a tax based on the value of a property. Local governments charge it every year to pay for public services such as schools, roads and emergency services.

Why it matters:

• Property tax is one of the largest ongoing costs of owning a home.
• It funds essential local services.
• Knowing how it is calculated helps you plan, check your bill and claim the exemptions you are owed.

This example follows the method the Alabama Department of Revenue publishes: appraised value × property class = assessed value, and assessed value × millage rate = the unadjusted tax bill.

• Step 1: Identify the appraised value. Example: $150,000.
• Step 2: Determine the property class. Owner-occupied home: Class III (10%). Rental or second home: Class II (20%).
• Step 3: Calculate the assessed value. Class III: $150,000 × 0.10 = $15,000. Class II: $150,000 × 0.20 = $30,000.
• Step 4: Find the millage rate. Example: 32.5 mills, which is 0.0325 as a decimal.
• Step 5: Calculate the unadjusted tax. Class III: $15,000 × 0.0325 = $487.50.
• Step 6: Apply exemptions.

Alabama's H-1 exemption takes $4,000 off the assessed value for state taxes and $2,000 off for county taxes, so the saving depends on how your 32.5 mills are split. If 6.5 mills are the state levy and 13 mills are county levies, H-1 saves $4,000 × 0.0065 + $2,000 × 0.013 = $26 + $26 = $52, and the tax falls to $487.50 − $52 = $435.50.

With the H-3 exemption, the owner is exempt from all ad valorem taxes, so the tax is $0.

Answer: the same $150,000 home can owe $975 as a rental, $487.50 as an owner-occupied home, $435.50 with H-1, or nothing with H-3.

Each example uses a total of 32.5 mills unless stated. The H-1 savings assume 6.5 mills of state levy and 13 mills of county levy, as in the step-by-step example.

Standard homestead: $200,000 × 0.10 = $20,000 assessed, and $20,000 × 0.0325 = $650. H-1 saves $4,000 × 0.0065 + $2,000 × 0.013 = $52, leaving $598.

Age 65 or older with H-3: $150,000 × 0.10 = $15,000 assessed, and $15,000 × 0.0325 = $487.50. H-3 exempts all ad valorem taxes, so the bill is $0.

Rental property: $180,000 × 0.20 = $36,000 assessed, and $36,000 × 0.0325 = $1,170. Rentals do not qualify for a homestead exemption.

Commercial property: $500,000 × 0.20 = $100,000 assessed, and $100,000 × 0.040 = $4,000.

How much property tax you pay depends on three things:

• Your property's appraised value
• Your property class, which sets the assessment rate
• Your local millage rate

A mill is $1 of tax per $1,000 of assessed value. So 32.5 mills is $32.50 per $1,000, or 0.0325 as a decimal. To turn mills into a decimal, divide by 1,000.

Your bill is usually several millage rates added together. In Alabama, the state constitution caps the state levy at 6.5 mills, and counties, cities and school districts add their own.

Because the millage applies to assessed value, the rate on the home's market value is much lower when the assessment rate is low. At 32.5 mills and a 10% assessment rate, the tax is 0.325% of market value. The calculator shows this as the effective tax rate.

Effective rates on owner-occupied homes vary widely between states, from under 0.5% of home value in states such as Hawaii and Alabama to close to 2% in states such as New Jersey and Illinois.

Many states assess property at a different rate depending on its use. Alabama, whose system this page uses as its example, has four classes:

For homes, the two classes that matter are:

• Class II (20%): non-owner-occupied homes, such as rentals and second homes
• Class III (10%): owner-occupied single-family homes

Other states use their own ratios. Georgia, for example, assesses property at 40% of fair market value, while other states assess at full value. Check the ratio with your county assessor and enter it in the calculator.

A homestead exemption is a tax break for owners who live in the property as their primary residence. It usually lowers the assessed value before the millage rate is applied.

• It applies only to a primary residence, not to rentals or second homes.
• It must be claimed with your county; it is not automatic.
• A person can have only one homestead exemption.
• In Alabama, the exemption covers the home and up to 160 acres of adjoining land.

Many states also offer extra relief for older, disabled or low-income homeowners, or for veterans. The amounts and rules differ by state, so check with your county tax office.

The Alabama Department of Revenue lists four homestead exemptions:

Each exemption covers up to 160 acres. Your county may also offer its own additional exemptions, so ask the county tax assessor which ones you can claim.

Estimating real estate taxes is useful before you buy a home.

• Step 1: Find the appraised value, from the listing price or a recent appraisal.
• Step 2: Find the assessment rate for your state and property class, for example 10% or 20% in Alabama.
• Step 3: Find the millage rate on the county tax office website, from your real estate agent, or from recent tax bills for similar homes.
• Step 4: Calculate: appraised value × assessment rate × millage rate = estimated tax.

Quick estimation method: annual tax ≈ home price × the effective tax rate in that area. At 1%, a $300,000 home pays about $3,000 a year; at 1.5%, about $4,500.

Why this helps:

• Budget for the monthly escrow payment added to your mortgage
• Compare the cost of living in different areas
• Negotiate with sellers when taxes are high

What to look for: the assessed value, the millage rate for each levy, the exemptions applied, and the total tax due.

Problem 1: a home is appraised at $100,000 and classed as Class III (10%). The millage rate is 30 mills. What is the unadjusted tax?

Solution: assessed value = $100,000 × 0.10 = $10,000. Tax = $10,000 × 0.030 = $300.

Problem 2: a rental property is appraised at $250,000 and classed as Class II (20%). The millage rate is 35 mills. What is the tax?

Solution: assessed value = $250,000 × 0.20 = $50,000. Tax = $50,000 × 0.035 = $1,750.

Problem 3: a homeowner with the H-3 exemption has a home appraised at $120,000 (Class III, 10%) and a millage rate of 28 mills. What is the tax?

Solution: assessed value = $120,000 × 0.10 = $12,000. Unadjusted tax = $12,000 × 0.028 = $336. H-3 removes all of it, so the tax is $0.

Problem 4: a home is appraised at $175,000 (Class III, 10%) with a millage rate of 33 mills, of which 6.5 are state and 13 are county. The owner has the H-1 exemption. What is the estimated tax?

Solution: assessed value = $175,000 × 0.10 = $17,500. Unadjusted tax = $17,500 × 0.033 = $577.50. H-1 saves $4,000 × 0.0065 + $2,000 × 0.013 = $52. Estimated tax = $525.50.

Problem 5: a commercial property is appraised at $500,000 and classed as Class II (20%). The millage rate is 40 mills. What is the tax?

Solution: assessed value = $500,000 × 0.20 = $100,000. Tax = $100,000 × 0.040 = $4,000.

This calculator can help with:

• Estimating your annual property tax
• Working out assessed and taxable value
• Applying a homestead exemption
• Showing the tax for each county, city, school and other levy
• Comparing tax bills for different property types and assessment rates
• Planning the cost of owning a home

This calculator cannot:

• Replace your official tax assessment
• Look up the millage rate or assessment ratio for your address
• Apply exemptions that differ by levy, such as Alabama's H-1, without a hand calculation
• Include special assessments or fees
• Replace legal or tax advice from a professional

A property tax calculator helps homeowners, buyers and investors plan for one of the biggest costs of owning property. Knowing how assessed value, millage rates and homestead exemptions fit together helps you check your bill and claim what you are owed.

Property tax = (appraised value × assessment rate − exemptions) × millage rate ÷ 1,000

Quick reference:

• 1 mill = $1 per $1,000 of assessed value
• Alabama Class II (non-owner-occupied): 20% assessment rate
• Alabama Class III (owner-occupied): 10% assessment rate
• Alabama homestead exemptions: H-1, H-2, H-3 and H-4
• Effective rates on homes run from under 0.5% to about 2% of value, depending on the state