Property Tax Estimator
Estimate your annual property tax. Mill rates vary 5-30+ depending on jurisdiction.
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Sam's Take
Don't trust Zillow's property tax estimate. It's almost always stale by 1-3 years and misses local exemptions. Pull the actual tax bill from your county assessor's website — it's public record. Massachusetts averages around 12 mills, but I've seen single towns vary from 8 to 22 mills within 30 miles of each other. The same building has 3x the tax bill on one side of the line vs the other. Always check before offering.
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How property tax is actually calculated
Property tax is one of the simpler taxes in the US, even though it sounds complicated. The formula is just two numbers multiplied together: your property's assessed value, times the local "mill rate" (divided by 1,000 because of how mill rates are written).
A "mill" is an old unit meaning one-tenth of one cent. A mill rate of 15 means $15 of tax for every $1,000 of assessed value — which is the same as 1.5% of assessed value annually. Mill rates vary enormously by where the property is:
- New England and the Northeast: 15-30 mills (1.5-3% of assessed value)
- South and Mountain West: 5-15 mills (0.5-1.5%)
- California: capped at ~10 mills due to Prop 13 (1%)
Within any one state, mill rates can vary 3-4x town to town. In Massachusetts, residential mill rates range from about 8 (Boston, Cambridge) to over 25 (some smaller western MA towns). Don't assume a "typical" rate. Pull the actual mill rate for the specific town from the assessor's office or the town website.
Assessed value vs market value — they're different on purpose
Your "assessed value" is whatever number the local assessor has on the books for your property. It's usually a few years behind market value because most towns reassess on a 3-5 year cycle, not annually. Some places (California most famously) cap how fast assessed value can grow, which means long-term owners are paying tax based on a number from decades ago.
For a property you just bought: expect the assessor to bump the assessed value to something close to your purchase price within a year or two of closing. A "low" property tax bill on a listing sometimes reflects an old assessment that's about to be updated. Underwrite the deal at the actual rate against what your purchase price will reassess to, not what the seller is currently paying.
Exemptions you might qualify for
- Homestead exemption. Owner-occupied primary residences. Usually knocks $20K-$50K off your assessed value depending on the state.
- Senior exemption. Age 65+ usually qualifies, often with an income cap.
- Veteran exemption. Disabled veterans get substantial exemptions in most states — sometimes a full waiver.
- Agricultural exemption. Working farms can drop their effective rate dramatically. Some states have minimum acreage and income requirements.
Important for investors: exemptions are almost all owner-occupied or use-specific. If you're buying a rental property, assume zero exemptions and full mill rate against full assessed value. That's a real line item on every deal — budget for it.