Quick answer
Property tax is a tax that local governments — typically counties, cities and school districts — charge on real estate based on its assessed value. With a mortgage it is usually paid through an escrow account as part of your monthly payment.
Key facts
0.89%
US effective property tax rate
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
$3,211/yr
US median property tax bill
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
How the bill is figured
The assessor sets a taxable value for the home; each taxing body applies its rate (often quoted in mills, or dollars per $1,000); and exemptions such as a homestead exemption reduce the taxable value or the bill. Assessments and rates can change every year, so the tax part of your PITI can change too.
Nationally, homeowners pay a median of $3,211 a year, an effective rate of 0.89% of home value. On a $361,000 home, that rate works out to $3,213 a year.
How much it varies by state
Across the states and DC, the effective rate is highest in Illinois at 1.92% and lowest in Hawaii at 0.27%. On the same $361,000 home, that is $6,931 a year versus $975. Rates also vary widely between counties within a state. See how property taxes change your payment, and use the mortgage payment calculator with your local rate.
Sources
- US Census Bureau, American Community Survey 2024 1-year — Median value of owner-occupied homes (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- CFPB: Mortgage key terms (property taxes)
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.