Calculate property taxes on a 501,000 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 $200,400. However, the house is worth much more, and you pay $501,000. In this scenario, your new taxable value could be $501,000, and if the tax rate is 2%, the new tax bill could be $10,020/year even though the previous owner paid just $4,008.
Previous Owner
New Owner
Taxable Value
$200,400
$501,000
Tax Rate
2%
2%
Property Taxes
$4,008
$10,020
Estimate Property Taxes on a 501,000 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
501,000
0.1%
$501
501,000
0.2%
$1,002
501,000
0.3%
$1,503
501,000
0.4%
$2,004
501,000
0.5%
$2,505
501,000
0.6%
$3,006
501,000
0.7%
$3,507
501,000
0.8%
$4,008
501,000
0.9%
$4,509
501,000
1%
$5,010
501,000
1.1%
$5,511
501,000
1.2%
$6,012
501,000
1.3%
$6,513
501,000
1.4%
$7,014
501,000
1.5%
$7,515
501,000
1.6%
$8,016
501,000
1.7%
$8,517
501,000
1.8%
$9,018
501,000
1.9%
$9,519
501,000
2%
$10,020
501,000
2.1%
$10,521
501,000
2.2%
$11,022
501,000
2.3%
$11,523
501,000
2.4%
$12,024
501,000
2.5%
$12,525
501,000
2.6%
$13,026
501,000
2.7%
$13,527
501,000
2.8%
$14,028
501,000
2.9%
$14,529
501,000
3%
$15,030
Taxes Using 50% Value and Mills
Taxable Value
Millage Rate (per $1,000)
Property Taxes
250,500
$2 per $1,000
$501
250,500
$4 per $1,000
$1,002
250,500
$6 per $1,000
$1,503
250,500
$8 per $1,000
$2,004
250,500
$10 per $1,000
$2,505
250,500
$12 per $1,000
$3,006
250,500
$14 per $1,000
$3,507
250,500
$16 per $1,000
$4,008
250,500
$18 per $1,000
$4,509
250,500
$20 per $1,000
$5,010
250,500
$22 per $1,000
$5,511
250,500
$24 per $1,000
$6,012
250,500
$26 per $1,000
$6,513
250,500
$28 per $1,000
$7,014
250,500
$30 per $1,000
$7,515
250,500
$32 per $1,000
$8,016
250,500
$34 per $1,000
$8,517
250,500
$36 per $1,000
$9,018
250,500
$38 per $1,000
$9,519
250,500
$40 per $1,000
$10,020
250,500
$42 per $1,000
$10,521
250,500
$44 per $1,000
$11,022
250,500
$46 per $1,000
$11,523
250,500
$48 per $1,000
$12,024
250,500
$50 per $1,000
$12,525
250,500
$52 per $1,000
$13,026
250,500
$54 per $1,000
$13,527
250,500
$56 per $1,000
$14,028
250,500
$58 per $1,000
$14,529
250,500
$60 per $1,000
$15,030
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 $250,500, a rate of 40 mills would have property taxes of $10,020.
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.