Calculate property taxes on a 127,000 home purchase.
About Property Taxes
Property taxes are assessed by local municipalities to pay for things such as local public schools, parks, and other municipal expenses. It can be confusing to estimate your new property taxes when buying a home.
When you buy a home, the property taxes are typically assessed based on the purchase price. You could end up paying significantly higher property taxes than the previous owner, especially if the previous owner has lived in the home for years and the taxable value is less than the purchase price.
For example, let's say that the previous owner has owned the house for 20 years and the taxable value is $50,800. However, the house is worth much more, and you pay $127,000. In this scenario, your new taxable value could be $127,000, and if the tax rate is 2%, the new tax bill could be $2,540/year even though the previous owner paid just $1,016.
Previous Owner
New Owner
Taxable Value
$50,800
$127,000
Tax Rate
2%
2%
Property Taxes
$1,016
$2,540
Estimate Property Taxes on a 127,000 Home Purchase
Use this calculator to determine the new tax bill on a home purchase. The results will update as you type. Your local government should have data about the tax rates and millage rates. You'll need to find out how the taxable value is calculated. Many times, the accessed and taxable values are 50% of the actual purchase price of the home.
$
%
Property Taxes
$
$
Property Taxes
Taxes Using 100% Value
Value
Tax Rate
Property Taxes
127,000
0.1%
$127
127,000
0.2%
$254
127,000
0.3%
$381
127,000
0.4%
$508
127,000
0.5%
$635
127,000
0.6%
$762
127,000
0.7%
$889
127,000
0.8%
$1,016
127,000
0.9%
$1,143
127,000
1%
$1,270
127,000
1.1%
$1,397
127,000
1.2%
$1,524
127,000
1.3%
$1,651
127,000
1.4%
$1,778
127,000
1.5%
$1,905
127,000
1.6%
$2,032
127,000
1.7%
$2,159
127,000
1.8%
$2,286
127,000
1.9%
$2,413
127,000
2%
$2,540
127,000
2.1%
$2,667
127,000
2.2%
$2,794
127,000
2.3%
$2,921
127,000
2.4%
$3,048
127,000
2.5%
$3,175
127,000
2.6%
$3,302
127,000
2.7%
$3,429
127,000
2.8%
$3,556
127,000
2.9%
$3,683
127,000
3%
$3,810
Taxes Using 50% Value and Mills
Taxable Value
Millage Rate (per $1,000)
Property Taxes
63,500
$2 per $1,000
$127
63,500
$4 per $1,000
$254
63,500
$6 per $1,000
$381
63,500
$8 per $1,000
$508
63,500
$10 per $1,000
$635
63,500
$12 per $1,000
$762
63,500
$14 per $1,000
$889
63,500
$16 per $1,000
$1,016
63,500
$18 per $1,000
$1,143
63,500
$20 per $1,000
$1,270
63,500
$22 per $1,000
$1,397
63,500
$24 per $1,000
$1,524
63,500
$26 per $1,000
$1,651
63,500
$28 per $1,000
$1,778
63,500
$30 per $1,000
$1,905
63,500
$32 per $1,000
$2,032
63,500
$34 per $1,000
$2,159
63,500
$36 per $1,000
$2,286
63,500
$38 per $1,000
$2,413
63,500
$40 per $1,000
$2,540
63,500
$42 per $1,000
$2,667
63,500
$44 per $1,000
$2,794
63,500
$46 per $1,000
$2,921
63,500
$48 per $1,000
$3,048
63,500
$50 per $1,000
$3,175
63,500
$52 per $1,000
$3,302
63,500
$54 per $1,000
$3,429
63,500
$56 per $1,000
$3,556
63,500
$58 per $1,000
$3,683
63,500
$60 per $1,000
$3,810
Understanding the Tax Bill
Many times, a property is accessed at 50% of the value of a property. The taxable value often has a cap on the amount that it can increase but this depends on the municipality. This is why long time home owners often have taxable values much less than assessed values.
The millage rate is a number used by local governments to assess taxes. It is expressed as a dollar amount for every $1,000 in taxable value. For example, 40 mills would equal $40 in property taxes for every $1,000 of taxable value. So for a home with a taxable value of $63,500, a rate of 40 mills would have property taxes of $2,540.
Assessed Value
Value that the assessor gives to the property. This is usually less than the actual value of the home.
Taxable Value
The value that is used to calculate property taxes.