Calculate property taxes on a 137,000 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 $54,800. However, the house is worth much more, and you pay $137,000. In this scenario, your new taxable value could be $137,000, and if the tax rate is 2%, the new tax bill could be $2,740/year even though the previous owner paid just $1,096.
Previous Owner
New Owner
Taxable Value
$54,800
$137,000
Tax Rate
2%
2%
Property Taxes
$1,096
$2,740
Estimate Property Taxes on a 137,000 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
137,000
0.1%
$137
137,000
0.2%
$274
137,000
0.3%
$411
137,000
0.4%
$548
137,000
0.5%
$685
137,000
0.6%
$822
137,000
0.7%
$959
137,000
0.8%
$1,096
137,000
0.9%
$1,233
137,000
1%
$1,370
137,000
1.1%
$1,507
137,000
1.2%
$1,644
137,000
1.3%
$1,781
137,000
1.4%
$1,918
137,000
1.5%
$2,055
137,000
1.6%
$2,192
137,000
1.7%
$2,329
137,000
1.8%
$2,466
137,000
1.9%
$2,603
137,000
2%
$2,740
137,000
2.1%
$2,877
137,000
2.2%
$3,014
137,000
2.3%
$3,151
137,000
2.4%
$3,288
137,000
2.5%
$3,425
137,000
2.6%
$3,562
137,000
2.7%
$3,699
137,000
2.8%
$3,836
137,000
2.9%
$3,973
137,000
3%
$4,110
Taxes Using 50% Value and Mills
Taxable Value
Millage Rate (per $1,000)
Property Taxes
68,500
$2 per $1,000
$137
68,500
$4 per $1,000
$274
68,500
$6 per $1,000
$411
68,500
$8 per $1,000
$548
68,500
$10 per $1,000
$685
68,500
$12 per $1,000
$822
68,500
$14 per $1,000
$959
68,500
$16 per $1,000
$1,096
68,500
$18 per $1,000
$1,233
68,500
$20 per $1,000
$1,370
68,500
$22 per $1,000
$1,507
68,500
$24 per $1,000
$1,644
68,500
$26 per $1,000
$1,781
68,500
$28 per $1,000
$1,918
68,500
$30 per $1,000
$2,055
68,500
$32 per $1,000
$2,192
68,500
$34 per $1,000
$2,329
68,500
$36 per $1,000
$2,466
68,500
$38 per $1,000
$2,603
68,500
$40 per $1,000
$2,740
68,500
$42 per $1,000
$2,877
68,500
$44 per $1,000
$3,014
68,500
$46 per $1,000
$3,151
68,500
$48 per $1,000
$3,288
68,500
$50 per $1,000
$3,425
68,500
$52 per $1,000
$3,562
68,500
$54 per $1,000
$3,699
68,500
$56 per $1,000
$3,836
68,500
$58 per $1,000
$3,973
68,500
$60 per $1,000
$4,110
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 $68,500, a rate of 40 mills would have property taxes of $2,740.
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.