Your Tax Bill Isn't Based on Full Market Value
Property tax isn't simply your home's market value multiplied by a tax rate. Most states first apply an assessment ratio to convert market value into "assessed value" โ the number your local tax rate actually gets applied to. Some states assess at 100% of market value, while others, like Louisiana, assess at ratios as low as 10%, which can make comparing tax burdens across states misleading if you only look at the tax rate. Once assessed value is set, your county applies a millage rate โ tax dollars per $1,000 of assessed value โ to calculate your bill. A home with a lower assessment ratio but a higher millage rate can end up costing about the same as one with a higher ratio and lower rate, so it's worth checking both figures for your specific county rather than assuming a "high" rate automatically means a high tax bill. This calculator shows your base tax before any homestead or senior exemptions are applied.
How It's Calculated
| Step | Item | Formula |
|---|---|---|
| 1 | Assessed Value | Market Value ร Assessment Ratio |
| 2 | Annual Property Tax | Assessed Value ร (Millage Rate รท 1,000) |
| 3 | Effective Tax Rate | Annual Tax รท Market Value |
Frequently Asked Questions
It determines what percentage of market value is taxed. It varies widely โ some states use 100%, others use ratios as low as 10%.
It's the tax rate per $1,000 of assessed value. 20 mills means $20 in tax for every $1,000 assessed.
No, this shows your base tax before exemptions. Try our senior homestead exemption calculator for that estimate.
โป Assessment ratios and millage rates vary widely by state and county. This is a simplified estimate for reference only.