Property Tax Intelligence MCP

Effective property tax rates, assessment ratios, homestead exemptions, appeal windows, and investment impact for all 50 US states + 19 major counties.

Returns investor-specific data: the difference between owner-occupied and investor tax burdens, appeal success rates, how tax affects NOI/cash flow, and an investor rating (A+ to D+) that factors in all these variables.

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What It Returns

State Records

Field	Description
record_type	"state"
state	Two-letter state code
state_full	Full state name
effective_rate_pct	Median effective rate (tax paid ÷ home value × 100) — the real burden
nominal_rate_pct	Statutory levy/mill rate (before assessment ratio adjustments)
assessment_ratio	Assessed value ÷ market value (e.g., 0.10 = assessed at 10% of value)
median_home_value	2024 statewide median home value ($)
median_annual_tax	Statewide median annual property tax bill ($)
homestead_exemption	Owner-occupied exemption amount ($) or false — investors typically don't qualify
senior_freeze_available	Whether a senior citizen freeze/circuit breaker program exists
appeal_window_days	Days to file an assessment appeal after notice
appeal_success_rate_pct	Industry-estimated % of appeals that reduce the tax bill
national_rank	Property tax rank: 1 = highest burden, 51 = lowest (DC included)
investor_rating	A+ to D+ composite investor rating (tax burden perspective)
estimated_annual_tax_at_query_value	Projected annual tax at user-supplied home_value
estimated_monthly_tax_at_query_value	Monthly equivalent of above
tax_as_pct_of_gross_rent	Tax bill as % of estimated gross rent (at 0.8% rent/price ratio)
investor_notes	Key investor-specific caveats and warnings

County Records

Field	Description
record_type	"county"
county	County name
state	Two-letter state code
city_served	Primary city/metro served
effective_rate_pct	County effective rate (often differs materially from state avg)
median_home_value	County median home value
median_annual_tax	County median annual tax bill
appeal_window_days	Days to appeal
appeal_success_rate_pct	County-level appeal success rate
estimated_annual_tax_at_query_value	Tax projection at user home_value
estimated_monthly_tax_at_query_value	Monthly equivalent
tax_as_pct_of_gross_rent	Tax as % of gross rent
investor_notes	County-specific investor intelligence

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Investor Rating (A+ to D+)

Rating	Description
A+	Exceptional — effective rate < 0.40%; near-zero tax burden
A	Excellent — effective rate 0.40–0.65%; low burden
A-	Very Good — effective rate 0.65–0.80%; below average
B+	Good — effective rate 0.80–1.00%; manageable
B	Average — effective rate 1.00–1.30%; moderate burden
B-	Below Average — effective rate 1.30–1.60%; elevated
C+	Poor — effective rate 1.60–1.80%; high burden
C	Bad — effective rate 1.80–2.00%; very high
C-	Very Bad — effective rate 2.00–2.20%; punitive
D+	Severe — effective rate > 2.20%; among worst in US

Rating also considers: homestead benefit availability for investors, appeal success rates, rate trajectory, and investor-specific surcharges.

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Input Parameters

Parameter	Type	Required	Description
state	string	No	Filter by state code (e.g., "TX", "FL") — returns all counties in that state too
county	string	No	Filter by county name (partial match)
city	string	No	Filter county records by city served
effective_rate_max	number	No	Maximum effective rate % to include (e.g., 1.0 for ≤1%)
investor_rating_min	string	No	Minimum investor rating: "A+", "A", "B+", "B", etc.
home_value	number	No	Custom home value for tax projection calculations
include_county_data	boolean	No	Include county-level records (default: true)
sort_by	string	No	Sort: effective_rate (asc, default), effective_rate_desc, investor_rating, annual_tax, appeal_success
limit	integer	No	Max records to return (default: 50)

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Example Inputs

Best investor states (rate ≤ 1%):

{
  "effective_rate_max": 1.0,
  "investor_rating_min": "B+",
  "sort_by": "investor_rating",
  "include_county_data": false,
  "limit": 20
}

Everything about Texas (state + all major counties):

{
  "state": "TX",
  "home_value": 350000
}

Florida counties only:

{
  "state": "FL",
  "include_county_data": true,
  "sort_by": "effective_rate"
}

Counties with best appeal success rates:

{
  "sort_by": "appeal_success",
  "include_county_data": true,
  "limit": 15
}

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Example Output

{
  "record_type": "state",
  "state": "TN",
  "state_full": "Tennessee",
  "effective_rate_pct": 0.64,
  "nominal_rate_pct": 0.70,
  "assessment_ratio": 0.25,
  "median_home_value": 309000,
  "median_annual_tax": 1974,
  "homestead_exemption": 25000,
  "senior_freeze_available": true,
  "appeal_window_days": 30,
  "appeal_success_rate_pct": 45,
  "national_rank": 40,
  "investor_rating": "A",
  "estimated_annual_tax_at_query_value": 2240,
  "estimated_monthly_tax_at_query_value": 187,
  "tax_as_pct_of_gross_rent": 7.5,
  "investor_notes": "No state income tax; low property tax; Nashville surging; Gatlinburg/Pigeon Forge STR mecca; investor-friendly state"
}

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States Ranked: Best to Worst for Investors

Rank	State	Effective Rate	Investor Rating	Key Note
1 (best)	Hawaii	0.27%	A+	Lowest in US; Oahu splits residential vs investor
2	Alabama	0.37%	A+	10% assessment ratio; near-zero burden
3	Louisiana	0.51%	A	Low burden; short appeal window
4	Delaware	0.54%	A	No income tax; no homestead for investors
5	Colorado	0.49%	B+	Low rate but rising post-2020; Denver STR restrictions
6	Tennessee	0.64%	A	No income tax; STR mecca; investor-friendly
7	Arizona	0.60%	A	Investor assessed at 18% vs 10% owner — know the split
8	Nevada	0.59%	A	No income tax; 3%/yr cap
…	…	…	…	…
45	Illinois	2.08%	D+	Pension crisis; Chicago appeals necessary
46	New Hampshire	2.09%	C-	Property tax IS the state tax
47 (worst)	New Jersey	2.23%	D+	Highest effective rate in US

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Critical Investor Distinctions

Homestead Exemptions Don't Apply to Investors

Most states offer significant homestead exemptions for owner-occupied properties. Investors typically pay the full rate or a higher investor-tier rate. Examples:

• South Carolina: Owner-occupied assessed at 4%; investor-owned at 6% — 50% higher
• Arizona: Owner-occupied at 10%; investor at 18% — 80% higher
• Florida: Save Our Homes caps owner-occupied increases at 3%/yr; investors get no cap
• Indiana: Homestead deduction ~$45K; investors pay nearly double the effective rate

Texas: Always Appeal

Texas has the highest appeal success rate (65–70%) of any major state. The 10% annual cap on appraised value increases means values can be locked below market — but only if you appeal consistently. Budget for appeal fees in your underwriting.

California: Prop 13 Advantage Accrues Over Time

New California buyers pay the full ~1.25% rate on purchase price. But the 2%/yr increase cap means long-hold investors see a massive effective rate decrease over time relative to market value appreciation. A property bought in 2005 may have an effective rate of 0.3% today.

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Data Sources

• Lincoln Institute of Land Policy — 50-state effective property tax rates (2023–2024)
• Tax Foundation — State property tax rankings and analysis
• County assessor websites — Major county effective rates and appeal data
• State legislative databases — Homestead exemption and senior freeze programs

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Use Cases

• Pre-acquisition underwriting — plug effective rate into NOI/cash flow models
• State comparison for portfolio allocation — rank states by investor tax burden
• Appeal strategy — identify counties with highest appeal success rates before filing
• Homestead vs investor rate gap analysis — understand the true cost for non-owner-occupied properties
• AI agent deal scoring — feed tax data into automated investment analysis

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Related Actors in the Real Estate Suite

• ../real-estate-intelligence-mcp/ — Property listings + deal scoring
• ../mortgage-rate-intelligence-mcp/ — Current rates + payment calculator
• ../rentcast-market-mcp/ — LTR rent estimates + vacancy rates
• ../str-market-intelligence-mcp/ — Airbnb/VRBO ADR and occupancy data