Property Tax Calculator
Property tax is often the biggest non-P&I line on a mortgage statement. This page helps you convert annual tax into a monthly budget number you can compare across homes.
Quick answer
Enter assessed value or annual tax bill and see the monthly portion that stacks on top of principal and interest.
For a related estimate, see 20 Percent Down Calculator.
Explore further: Biweekly Mortgage Calculator · Closing Cost Calculator
How to use this calculator
- Start from annual tax if you have it: Listing sheets often show last year’s tax—divide by 12 for monthly escrow-style thinking.
- Or use rate × value: Effective rate × assessed value approximates annual tax when assessments track market slowly.
- Compare two properties: Same price, different districts can mean different tax—and different “real” payment.
How the monthly line is formed
Annual property tax ÷ 12 is the portion many lenders collect monthly in escrow. It does not reduce principal—it sits alongside P&I.
Explore further: Debt To Income Calculator · Down Payment Calculator
Real-world example
- Example: $5,400/yr property tax: ≈ $450/mo added to housing cost before insurance (illustrative).
Explore further: Home Affordability With Taxes · Home Loan Calculator
What this means
Tax loaded into the payment is cash out every month whether you feel it as “mortgage” or not—reconcile to assessor or MLS before you decide you can afford a list price.
FAQ
Will taxes go up after I buy?
Sometimes—reassessment or millage changes can move the bill. Model a buffer if you are borderline on payment.
Is this an official loan estimate?
No. It is an educational model. Lenders issue formal estimates after underwriting; use this to ballpark payments and compare scenarios.
Why does my lender’s payment differ?
Escrow timing, PMI rules, local tax assessments, and rounding can differ. Align inputs with your Loan Estimate line items when comparing.