Compare Year 2 mortgage payment shock, county property tax reassessment triggers, and statutory exemption rules across major US housing markets.
Click any state row to open the dedicated pre-hydrated decision calculator.
| State / Jurisdiction | Median Home Value | Effective Tax Rate | Avg Annual Insurance | Est. Monthly Escrow Spike | Statutory Basis | Action |
|---|---|---|---|---|---|---|
| CaliforniaCA | $850,000 | 1.25% | $2,400/yr | +$688/mo | Cal. Const. art. XIII A | Calculate |
| TexasTX | $350,000 | 2.15% | $4,200/yr | +$430/mo | Tex. Tax Code Ann. § 11.13 & § 23.23 | Calculate |
| FloridaFL | $410,000 | 0.98% | $6,200/yr | +$261/mo | Fla. Stat. § 193.155 | Calculate |
| New JerseyNJ | $520,000 | 2.47% | $1,900/yr | +$618/mo | N.J. Const. art. VIII, § 1 & N.J. Stat. Ann. § 54:4-1 et seq. | Calculate |
| New YorkNY | $460,000 | 1.73% | $2,100/yr | +$404/mo | N.Y. Real Prop. Tax Law § 425 | Calculate |
| IllinoisIL | $290,000 | 2.23% | $2,300/yr | +$353/mo | 35 Ill. Comp. Stat. 200/ | Calculate |
| PennsylvaniaPA | $275,000 | 1.58% | $1,500/yr | +$237/mo | Pa. Stat. Ann. tit. 53, § 8801 et seq. | Calculate |
| OhioOH | $230,000 | 1.57% | $1,400/yr | +$196/mo | Ohio Rev. Code Ann. § 5713.01 & House Bill 920 Tax Reduction Factors | Calculate |
| North CarolinaNC | $340,000 | 0.82% | $2,200/yr | +$143/mo | N.C. Gen. Stat. § 105-286 | Calculate |
| GeorgiaGA | $330,000 | 0.92% | $2,600/yr | +$161/mo | Ga. Code Ann. § 48-5-32 | Calculate |
When purchasing a home in the United States, closing escrow initial estimates are typically calculated using the seller's existing property tax assessment. In states where assessment caps protect long-term homeowners (such as California's Proposition 13 or Florida's Save Our Homes), the seller's taxable value may be hundreds of thousands of dollars below current market value.
When the county property assessor completes the post-closing reappraisal to reflect the new sale price, the lender must pay the higher tax bill from your escrow account. Because your initial monthly payments under-collected for this higher liability, the servicer faces an escrow deficit. To balance the account, your Year 2 monthly mortgage payment increases by both the permanent new tax baseline AND a 12-month shortage catch-up spread.