Calculate property taxes on a 165,000 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 $66,000. However, the house is worth much more, and you pay $165,000. In this scenario, your new taxable value could be $165,000, and if the tax rate is 2%, the new tax bill could be $3,300/year even though the previous owner paid just $1,320.
Previous Owner
New Owner
Taxable Value
$66,000
$165,000
Tax Rate
2%
2%
Property Taxes
$1,320
$3,300
Estimate Property Taxes on a 165,000 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
165,000
0.1%
$165
165,000
0.2%
$330
165,000
0.3%
$495
165,000
0.4%
$660
165,000
0.5%
$825
165,000
0.6%
$990
165,000
0.7%
$1,155
165,000
0.8%
$1,320
165,000
0.9%
$1,485
165,000
1%
$1,650
165,000
1.1%
$1,815
165,000
1.2%
$1,980
165,000
1.3%
$2,145
165,000
1.4%
$2,310
165,000
1.5%
$2,475
165,000
1.6%
$2,640
165,000
1.7%
$2,805
165,000
1.8%
$2,970
165,000
1.9%
$3,135
165,000
2%
$3,300
165,000
2.1%
$3,465
165,000
2.2%
$3,630
165,000
2.3%
$3,795
165,000
2.4%
$3,960
165,000
2.5%
$4,125
165,000
2.6%
$4,290
165,000
2.7%
$4,455
165,000
2.8%
$4,620
165,000
2.9%
$4,785
165,000
3%
$4,950
Taxes Using 50% Value and Mills
Taxable Value
Millage Rate (per $1,000)
Property Taxes
82,500
$2 per $1,000
$165
82,500
$4 per $1,000
$330
82,500
$6 per $1,000
$495
82,500
$8 per $1,000
$660
82,500
$10 per $1,000
$825
82,500
$12 per $1,000
$990
82,500
$14 per $1,000
$1,155
82,500
$16 per $1,000
$1,320
82,500
$18 per $1,000
$1,485
82,500
$20 per $1,000
$1,650
82,500
$22 per $1,000
$1,815
82,500
$24 per $1,000
$1,980
82,500
$26 per $1,000
$2,145
82,500
$28 per $1,000
$2,310
82,500
$30 per $1,000
$2,475
82,500
$32 per $1,000
$2,640
82,500
$34 per $1,000
$2,805
82,500
$36 per $1,000
$2,970
82,500
$38 per $1,000
$3,135
82,500
$40 per $1,000
$3,300
82,500
$42 per $1,000
$3,465
82,500
$44 per $1,000
$3,630
82,500
$46 per $1,000
$3,795
82,500
$48 per $1,000
$3,960
82,500
$50 per $1,000
$4,125
82,500
$52 per $1,000
$4,290
82,500
$54 per $1,000
$4,455
82,500
$56 per $1,000
$4,620
82,500
$58 per $1,000
$4,785
82,500
$60 per $1,000
$4,950
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 $82,500, a rate of 40 mills would have property taxes of $3,300.
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.