Direct Answer
Effective property tax rates in the U.S. range from about 0.3% (Hawaii) to 2.4%+ (New Jersey) of home value. On a $300,000 home, that means $900 to $7,200 per year — $75 to $600 per month in escrow.
Use the Property Tax Calculator with your home value and state to estimate annual tax and monthly escrow.
Last verified on: June 28, 2026
Editorial note: This guide is for educational planning only — not legal, tax, lending, or medical advice. Verify figures with official sources and qualified professionals before making decisions.
Research method: Daily Calcs reviewed primary government, regulatory, and industry sources and modeled calculator scenarios on June 28, 2026.
Effective Property Tax Rate by State (2026 benchmarks)
| State | Effective rate (approx.) | Annual tax on $300k | Monthly escrow |
|---|---|---|---|
| New Jersey | 2.3% | $6,900 | $575 |
| Illinois | 2.1% | $6,300 | $525 |
| Texas | 1.6% | $4,800 | $400 |
| New York | 1.4% | $4,200 | $350 |
| U.S. average | ~0.9% | $2,700 | $225 |
| Colorado | 0.5% | $1,500 | $125 |
| Hawaii | 0.3% | $900 | $75 |
What This Means for Your Monthly Payment
On a $350,000 home with a $280,000 loan at 6.5%, property tax escrow can swing $450/month between low- and high-tax counties — often more than a 0.25% rate change on the same loan.
How Effective Rate Differs From Millage
Millage rate is tax per $1,000 of assessed value. Effective rate is total tax bill ÷ market value — the number that matters for affordability comparisons.
A $300,000 home in New Jersey at 2.3% effective pays $6,900/year. The same home in Hawaii at 0.3% pays $900/year — a $6,000 annual difference.
Worked Example: Same Home Price, Three Counties
$350,000 home, 20% down, $280,000 loan, 6.5% rate, $1,800/yr insurance:
| Location | Effective rate | Annual tax | Monthly escrow | Total PITI (Principal, Interest, Taxes, and Insurance) |
|---|---|---|---|---|
| Harris Co, TX (~1.8%) | 1.8% | $6,300 | $525 | ~$2,567 |
| Cook Co, IL (~2.1%) | 2.1% | $7,350 | $613 | ~$2,655 |
| Bergen Co, NJ (~2.3%) | 2.3% | $8,050 | $671 | ~$2,713 |
$146/month tax swing between Texas and New Jersey on the same sticker price.
What to Do Next
- Look up county effective rate on assessor or Tax Foundation data.
- Multiply home value × rate for annual tax estimate.
- Divide by 12 for monthly escrow in Mortgage Calculator.
- Appeal assessment if market value dropped vs assessed value.
- Verify homestead exemption eligibility in your state.
Property Tax Research Checklist
- County assessor millage sheet — download from official site
- Last year’s tax bill on comparable home — ask realtor or seller
- Homestead exemption rules — confirm state/county eligibility
- Special district levies — review county bill breakdown
- Property Tax Calculator — enter verified rate on Daily Calcs
Common Mistakes With Property Tax Planning
Using purchase price as tax base when reassessment on sale jumps assessed value 20% to 40% in some states. Another error is ignoring homestead exemption applications after move-in — deadlines are often 30 to 90 days.
Comparing states by rate alone without assessment ratio (market vs assessed value) mis-ranks affordability.
Assumptions and Limitations
Effective rates are averages — individual parcels vary with school district, municipal overlays, and special assessments. Tax appeals require evidence and have filing windows.
Calculator outputs do not detect agricultural exemptions, senior freezes, or disability reductions available in some counties.
What This Means for Your Personal Numbers
County averages are useful for comparing states, but your actual bill depends on your specific assessor, school district, and special levies. Pull last year’s tax bill on any home you are serious about — do not rely on a real estate site’s estimate. If you already own, check your assessment against market value. A successful appeal can save you hundreds per month in escrow for years.
Calculator Methodology
The Property Tax Calculator multiplies home value by an effective rate (or millage inputs where configured) and divides by 12 for monthly escrow.
Assumptions: You enter purchase price or assessed value and select state/county benchmarks.
Limitations: Homestead exemptions, assessment caps, and special districts are not auto-detected. Use your county assessor bill for binding amounts.
How to stress-test your result
Run a best case and worst case input side by side. Add 0.25% to rate or 10% to tax and insurance. If the result breaks your budget at the worst case, adjust your assumptions before committing.
Related Reading
- How Property Tax Is Calculated (2026) — assessment ratios and millage explained
- Mortgage Payment by State (2026) — PITI (Principal, Interest, Taxes, and Insurance) with tax variation
- Property Tax Calculator — annual and monthly estimates
Official and Supporting Sources
- Tax Foundation: Property Taxes by State
- U.S. Census Bureau: Property Tax Statistics
- Consumer Financial Protection Bureau (CFPB): Escrow Accounts
Next Step
Enter your home value and location in the Property Tax Calculator to see annual tax, monthly escrow, and how rate changes affect PITI.
Frequently Asked Questions
Which state has the highest property tax rate in 2026?
New Jersey consistently ranks among the highest effective property tax states, with statewide effective rates often near 2.2% to 2.4% of home value. Illinois, Connecticut, New Hampshire, and Texas also carry above-average burdens when measured as a percentage of value. Rankings shift slightly by county — a low-tax state can still have high-tax counties near urban cores. Use effective rate (tax divided by value) rather than nominal millage alone.
How do I find my county property tax rate?
Start with your county assessor or tax collector website for millage rates and assessment ratios. Multiply the assessed value by the total mill rate, or divide your last tax bill by market value for an effective rate. Many counties publish rate sheets each fall for the upcoming tax year. The Property Tax Calculator uses state and county benchmarks when you enter home value and location.
What is the average property tax on a $300,000 home?
At the U.S. average effective rate near 0.9% to 1.0%, annual property tax on a $300,000 home is roughly $2,700 to $3,000 — about $225 to $250 per month in escrow. In New Jersey at 2.3%, the same home might pay $6,900 annually ($575/month). In Hawaii near 0.3%, annual tax might be $900 ($75/month). County and school district overlays explain most of the spread.
Property tax vs assessed value: What is the difference?
Assessed value is what the taxing authority uses to calculate your bill — often a percentage of market value depending on state law. Property tax rate (millage) is applied to assessed value, not necessarily the price you paid. A $300,000 purchase might assess at $255,000 in one state and $300,000 in another. Homestead exemptions and assessment caps further change the bill.
Do property tax rates change every year?
Yes — millage rates, assessed values, and exemption rules update annually or on multi-year cycles depending on the county. Tax bills usually reflect prior-year assessments with appeals windows in spring or summer. Budget for 2% to 5% annual bill growth in high-appreciation markets even when rates stay flat, because reassessments catch up to market value.
County rate vs city rate: Which one matters for escrow?
Your total bill stacks county, city, school district, and special district levies. Lenders escrow the combined annual bill divided by twelve. A low county rate can be offset by high school millage — common in Northeastern suburbs. Always use the total effective rate when comparing locations for mortgage affordability.
Related guides
- Property Tax Calculator by State - County Rates (2026) Learn how property tax is calculated in 2026. See state effective rates, mill levies, and monthly escrow on a $400k home. Free property tax calculator.
- Texas Property Tax Loans - Rates, Costs & Plans (2026) Learn how Texas property tax loans work in 2026. Compare annual percentage rate (APR), fees on an $8,500 bill, and county payment plan alternatives. Free calculator.
- Texas Property Tax Escrow - Monthly Example (2026) See how Texas property tax affects your monthly mortgage payment in 2026, with escrow examples, tax rates, and what Houston-area buyers should verify. Free guide.
- Mortgage Payment by State - Tax Comparison (2026) See how property tax rates change monthly mortgage payments across US states. The gap between Colorado and New Jersey hits $500/month on a $350k home. Free guide.
- Arizona Mortgage Calculator - Phoenix Taxes (2026) Calculate Arizona and Phoenix mortgage payments with Maricopa property taxes, insurance, and PMI. See HOME Plus down payment assistance (DPA) examples. Free.