Calculate property taxes on a 503,000 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 $201,200. However, the house is worth much more, and you pay $503,000. In this scenario, your new taxable value could be $503,000, and if the tax rate is 2%, the new tax bill could be $10,060/year even though the previous owner paid just $4,024.
Previous Owner
New Owner
Taxable Value
$201,200
$503,000
Tax Rate
2%
2%
Property Taxes
$4,024
$10,060
Estimate Property Taxes on a 503,000 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
503,000
0.1%
$503
503,000
0.2%
$1,006
503,000
0.3%
$1,509
503,000
0.4%
$2,012
503,000
0.5%
$2,515
503,000
0.6%
$3,018
503,000
0.7%
$3,521
503,000
0.8%
$4,024
503,000
0.9%
$4,527
503,000
1%
$5,030
503,000
1.1%
$5,533
503,000
1.2%
$6,036
503,000
1.3%
$6,539
503,000
1.4%
$7,042
503,000
1.5%
$7,545
503,000
1.6%
$8,048
503,000
1.7%
$8,551
503,000
1.8%
$9,054
503,000
1.9%
$9,557
503,000
2%
$10,060
503,000
2.1%
$10,563
503,000
2.2%
$11,066
503,000
2.3%
$11,569
503,000
2.4%
$12,072
503,000
2.5%
$12,575
503,000
2.6%
$13,078
503,000
2.7%
$13,581
503,000
2.8%
$14,084
503,000
2.9%
$14,587
503,000
3%
$15,090
Taxes Using 50% Value and Mills
Taxable Value
Millage Rate (per $1,000)
Property Taxes
251,500
$2 per $1,000
$503
251,500
$4 per $1,000
$1,006
251,500
$6 per $1,000
$1,509
251,500
$8 per $1,000
$2,012
251,500
$10 per $1,000
$2,515
251,500
$12 per $1,000
$3,018
251,500
$14 per $1,000
$3,521
251,500
$16 per $1,000
$4,024
251,500
$18 per $1,000
$4,527
251,500
$20 per $1,000
$5,030
251,500
$22 per $1,000
$5,533
251,500
$24 per $1,000
$6,036
251,500
$26 per $1,000
$6,539
251,500
$28 per $1,000
$7,042
251,500
$30 per $1,000
$7,545
251,500
$32 per $1,000
$8,048
251,500
$34 per $1,000
$8,551
251,500
$36 per $1,000
$9,054
251,500
$38 per $1,000
$9,557
251,500
$40 per $1,000
$10,060
251,500
$42 per $1,000
$10,563
251,500
$44 per $1,000
$11,066
251,500
$46 per $1,000
$11,569
251,500
$48 per $1,000
$12,072
251,500
$50 per $1,000
$12,575
251,500
$52 per $1,000
$13,078
251,500
$54 per $1,000
$13,581
251,500
$56 per $1,000
$14,084
251,500
$58 per $1,000
$14,587
251,500
$60 per $1,000
$15,090
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 $251,500, a rate of 40 mills would have property taxes of $10,060.
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.