How much do property taxes vary by state and how do I estimate mine?

Property tax rates swing enormously by location. Effective rates range from well under 0.5% of home value in low-tax states to over 2% in states like New Jersey and Illinois, according to Tax Foundation data. On a $400,000 home, that's the difference between roughly $2,000 and $8,000+ a year. To estimate yours, find the local millage rate on your county assessor's website and apply it to the assessed value, which may differ from the purchase price. Many buyers forget taxes are escrowed into the monthly payment, so a high-tax county can add hundreds to your payment. Factor the real local rate into your budget using wealthserene.com/tools/home-affordability rather than a national average.