Calculate property taxes on a 502,000 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 $200,800. However, the house is worth much more, and you pay $502,000. In this scenario, your new taxable value could be $502,000, and if the tax rate is 2%, the new tax bill could be $10,040/year even though the previous owner paid just $4,016.
Previous Owner
New Owner
Taxable Value
$200,800
$502,000
Tax Rate
2%
2%
Property Taxes
$4,016
$10,040
Estimate Property Taxes on a 502,000 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
502,000
0.1%
$502
502,000
0.2%
$1,004
502,000
0.3%
$1,506
502,000
0.4%
$2,008
502,000
0.5%
$2,510
502,000
0.6%
$3,012
502,000
0.7%
$3,514
502,000
0.8%
$4,016
502,000
0.9%
$4,518
502,000
1%
$5,020
502,000
1.1%
$5,522
502,000
1.2%
$6,024
502,000
1.3%
$6,526
502,000
1.4%
$7,028
502,000
1.5%
$7,530
502,000
1.6%
$8,032
502,000
1.7%
$8,534
502,000
1.8%
$9,036
502,000
1.9%
$9,538
502,000
2%
$10,040
502,000
2.1%
$10,542
502,000
2.2%
$11,044
502,000
2.3%
$11,546
502,000
2.4%
$12,048
502,000
2.5%
$12,550
502,000
2.6%
$13,052
502,000
2.7%
$13,554
502,000
2.8%
$14,056
502,000
2.9%
$14,558
502,000
3%
$15,060
Taxes Using 50% Value and Mills
Taxable Value
Millage Rate (per $1,000)
Property Taxes
251,000
$2 per $1,000
$502
251,000
$4 per $1,000
$1,004
251,000
$6 per $1,000
$1,506
251,000
$8 per $1,000
$2,008
251,000
$10 per $1,000
$2,510
251,000
$12 per $1,000
$3,012
251,000
$14 per $1,000
$3,514
251,000
$16 per $1,000
$4,016
251,000
$18 per $1,000
$4,518
251,000
$20 per $1,000
$5,020
251,000
$22 per $1,000
$5,522
251,000
$24 per $1,000
$6,024
251,000
$26 per $1,000
$6,526
251,000
$28 per $1,000
$7,028
251,000
$30 per $1,000
$7,530
251,000
$32 per $1,000
$8,032
251,000
$34 per $1,000
$8,534
251,000
$36 per $1,000
$9,036
251,000
$38 per $1,000
$9,538
251,000
$40 per $1,000
$10,040
251,000
$42 per $1,000
$10,542
251,000
$44 per $1,000
$11,044
251,000
$46 per $1,000
$11,546
251,000
$48 per $1,000
$12,048
251,000
$50 per $1,000
$12,550
251,000
$52 per $1,000
$13,052
251,000
$54 per $1,000
$13,554
251,000
$56 per $1,000
$14,056
251,000
$58 per $1,000
$14,558
251,000
$60 per $1,000
$15,060
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 $251,000, a rate of 40 mills would have property taxes of $10,040.
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.