Mortgage Planning
Property Tax and Mortgage Affordability
This explainer shows how a property tax percent turns into a monthly number, includes a simple example, and shares tips for testing scenarios safely.
Published: January 1, 2026 · Updated: January 1, 2026 · By FinToolSuite Editorial
Open the stress tester
Enter your property tax percent, run a scenario, and compare different tax assumptions.
Disclaimer
- Educational only. Local taxes vary. No guarantees.
- Examples are illustrative.
Turn percent into monthly
Example: 1.2% of $400,000 is $4,800 per year, about $400 per month. Enter the percent so the tool applies it to your price.
Tips for safe assumptions
- Test a higher percent if assessments can rise.
- Note the date and source of your assumption.
- Rerun if the percent changes.
FAQs
Do I include escrow fees?
If applicable, include them in costs so DTI reflects your payments.
Should I test two tax rates?
Yes. Run a low and high case to see the impact on DTI and safe loan.
Where do I see stress details?
Review the DTI distribution and safe loan after running scenarios.
Where is privacy info?
See Privacy Policy.
Test tax scenarios
Open the mortgage affordability stress tester, enter two tax percents, and compare outputs side by side.