Calculate property taxes on a 162,000 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 $64,800. However, the house is worth much more, and you pay $162,000. In this scenario, your new taxable value could be $162,000, and if the tax rate is 2%, the new tax bill could be $3,240/year even though the previous owner paid just $1,296.
Previous Owner
New Owner
Taxable Value
$64,800
$162,000
Tax Rate
2%
2%
Property Taxes
$1,296
$3,240
Estimate Property Taxes on a 162,000 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
162,000
0.1%
$162
162,000
0.2%
$324
162,000
0.3%
$486
162,000
0.4%
$648
162,000
0.5%
$810
162,000
0.6%
$972
162,000
0.7%
$1,134
162,000
0.8%
$1,296
162,000
0.9%
$1,458
162,000
1%
$1,620
162,000
1.1%
$1,782
162,000
1.2%
$1,944
162,000
1.3%
$2,106
162,000
1.4%
$2,268
162,000
1.5%
$2,430
162,000
1.6%
$2,592
162,000
1.7%
$2,754
162,000
1.8%
$2,916
162,000
1.9%
$3,078
162,000
2%
$3,240
162,000
2.1%
$3,402
162,000
2.2%
$3,564
162,000
2.3%
$3,726
162,000
2.4%
$3,888
162,000
2.5%
$4,050
162,000
2.6%
$4,212
162,000
2.7%
$4,374
162,000
2.8%
$4,536
162,000
2.9%
$4,698
162,000
3%
$4,860
Taxes Using 50% Value and Mills
Taxable Value
Millage Rate (per $1,000)
Property Taxes
81,000
$2 per $1,000
$162
81,000
$4 per $1,000
$324
81,000
$6 per $1,000
$486
81,000
$8 per $1,000
$648
81,000
$10 per $1,000
$810
81,000
$12 per $1,000
$972
81,000
$14 per $1,000
$1,134
81,000
$16 per $1,000
$1,296
81,000
$18 per $1,000
$1,458
81,000
$20 per $1,000
$1,620
81,000
$22 per $1,000
$1,782
81,000
$24 per $1,000
$1,944
81,000
$26 per $1,000
$2,106
81,000
$28 per $1,000
$2,268
81,000
$30 per $1,000
$2,430
81,000
$32 per $1,000
$2,592
81,000
$34 per $1,000
$2,754
81,000
$36 per $1,000
$2,916
81,000
$38 per $1,000
$3,078
81,000
$40 per $1,000
$3,240
81,000
$42 per $1,000
$3,402
81,000
$44 per $1,000
$3,564
81,000
$46 per $1,000
$3,726
81,000
$48 per $1,000
$3,888
81,000
$50 per $1,000
$4,050
81,000
$52 per $1,000
$4,212
81,000
$54 per $1,000
$4,374
81,000
$56 per $1,000
$4,536
81,000
$58 per $1,000
$4,698
81,000
$60 per $1,000
$4,860
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 $81,000, a rate of 40 mills would have property taxes of $3,240.
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.