Calculate property taxes on a 128,000 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 $51,200. However, the house is worth much more, and you pay $128,000. In this scenario, your new taxable value could be $128,000, and if the tax rate is 2%, the new tax bill could be $2,560/year even though the previous owner paid just $1,024.
Previous Owner
New Owner
Taxable Value
$51,200
$128,000
Tax Rate
2%
2%
Property Taxes
$1,024
$2,560
Estimate Property Taxes on a 128,000 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
128,000
0.1%
$128
128,000
0.2%
$256
128,000
0.3%
$384
128,000
0.4%
$512
128,000
0.5%
$640
128,000
0.6%
$768
128,000
0.7%
$896
128,000
0.8%
$1,024
128,000
0.9%
$1,152
128,000
1%
$1,280
128,000
1.1%
$1,408
128,000
1.2%
$1,536
128,000
1.3%
$1,664
128,000
1.4%
$1,792
128,000
1.5%
$1,920
128,000
1.6%
$2,048
128,000
1.7%
$2,176
128,000
1.8%
$2,304
128,000
1.9%
$2,432
128,000
2%
$2,560
128,000
2.1%
$2,688
128,000
2.2%
$2,816
128,000
2.3%
$2,944
128,000
2.4%
$3,072
128,000
2.5%
$3,200
128,000
2.6%
$3,328
128,000
2.7%
$3,456
128,000
2.8%
$3,584
128,000
2.9%
$3,712
128,000
3%
$3,840
Taxes Using 50% Value and Mills
Taxable Value
Millage Rate (per $1,000)
Property Taxes
64,000
$2 per $1,000
$128
64,000
$4 per $1,000
$256
64,000
$6 per $1,000
$384
64,000
$8 per $1,000
$512
64,000
$10 per $1,000
$640
64,000
$12 per $1,000
$768
64,000
$14 per $1,000
$896
64,000
$16 per $1,000
$1,024
64,000
$18 per $1,000
$1,152
64,000
$20 per $1,000
$1,280
64,000
$22 per $1,000
$1,408
64,000
$24 per $1,000
$1,536
64,000
$26 per $1,000
$1,664
64,000
$28 per $1,000
$1,792
64,000
$30 per $1,000
$1,920
64,000
$32 per $1,000
$2,048
64,000
$34 per $1,000
$2,176
64,000
$36 per $1,000
$2,304
64,000
$38 per $1,000
$2,432
64,000
$40 per $1,000
$2,560
64,000
$42 per $1,000
$2,688
64,000
$44 per $1,000
$2,816
64,000
$46 per $1,000
$2,944
64,000
$48 per $1,000
$3,072
64,000
$50 per $1,000
$3,200
64,000
$52 per $1,000
$3,328
64,000
$54 per $1,000
$3,456
64,000
$56 per $1,000
$3,584
64,000
$58 per $1,000
$3,712
64,000
$60 per $1,000
$3,840
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 $64,000, a rate of 40 mills would have property taxes of $2,560.
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.