Calculate property taxes on a 130,000 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 $52,000. However, the house is worth much more, and you pay $130,000. In this scenario, your new taxable value could be $130,000, and if the tax rate is 2%, the new tax bill could be $2,600/year even though the previous owner paid just $1,040.
Previous Owner
New Owner
Taxable Value
$52,000
$130,000
Tax Rate
2%
2%
Property Taxes
$1,040
$2,600
Estimate Property Taxes on a 130,000 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
130,000
0.1%
$130
130,000
0.2%
$260
130,000
0.3%
$390
130,000
0.4%
$520
130,000
0.5%
$650
130,000
0.6%
$780
130,000
0.7%
$910
130,000
0.8%
$1,040
130,000
0.9%
$1,170
130,000
1%
$1,300
130,000
1.1%
$1,430
130,000
1.2%
$1,560
130,000
1.3%
$1,690
130,000
1.4%
$1,820
130,000
1.5%
$1,950
130,000
1.6%
$2,080
130,000
1.7%
$2,210
130,000
1.8%
$2,340
130,000
1.9%
$2,470
130,000
2%
$2,600
130,000
2.1%
$2,730
130,000
2.2%
$2,860
130,000
2.3%
$2,990
130,000
2.4%
$3,120
130,000
2.5%
$3,250
130,000
2.6%
$3,380
130,000
2.7%
$3,510
130,000
2.8%
$3,640
130,000
2.9%
$3,770
130,000
3%
$3,900
Taxes Using 50% Value and Mills
Taxable Value
Millage Rate (per $1,000)
Property Taxes
65,000
$2 per $1,000
$130
65,000
$4 per $1,000
$260
65,000
$6 per $1,000
$390
65,000
$8 per $1,000
$520
65,000
$10 per $1,000
$650
65,000
$12 per $1,000
$780
65,000
$14 per $1,000
$910
65,000
$16 per $1,000
$1,040
65,000
$18 per $1,000
$1,170
65,000
$20 per $1,000
$1,300
65,000
$22 per $1,000
$1,430
65,000
$24 per $1,000
$1,560
65,000
$26 per $1,000
$1,690
65,000
$28 per $1,000
$1,820
65,000
$30 per $1,000
$1,950
65,000
$32 per $1,000
$2,080
65,000
$34 per $1,000
$2,210
65,000
$36 per $1,000
$2,340
65,000
$38 per $1,000
$2,470
65,000
$40 per $1,000
$2,600
65,000
$42 per $1,000
$2,730
65,000
$44 per $1,000
$2,860
65,000
$46 per $1,000
$2,990
65,000
$48 per $1,000
$3,120
65,000
$50 per $1,000
$3,250
65,000
$52 per $1,000
$3,380
65,000
$54 per $1,000
$3,510
65,000
$56 per $1,000
$3,640
65,000
$58 per $1,000
$3,770
65,000
$60 per $1,000
$3,900
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 $65,000, a rate of 40 mills would have property taxes of $2,600.
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.