Calculate property taxes on a 505,000 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 $202,000. However, the house is worth much more, and you pay $505,000. In this scenario, your new taxable value could be $505,000, and if the tax rate is 2%, the new tax bill could be $10,100/year even though the previous owner paid just $4,040.
Previous Owner
New Owner
Taxable Value
$202,000
$505,000
Tax Rate
2%
2%
Property Taxes
$4,040
$10,100
Estimate Property Taxes on a 505,000 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
505,000
0.1%
$505
505,000
0.2%
$1,010
505,000
0.3%
$1,515
505,000
0.4%
$2,020
505,000
0.5%
$2,525
505,000
0.6%
$3,030
505,000
0.7%
$3,535
505,000
0.8%
$4,040
505,000
0.9%
$4,545
505,000
1%
$5,050
505,000
1.1%
$5,555
505,000
1.2%
$6,060
505,000
1.3%
$6,565
505,000
1.4%
$7,070
505,000
1.5%
$7,575
505,000
1.6%
$8,080
505,000
1.7%
$8,585
505,000
1.8%
$9,090
505,000
1.9%
$9,595
505,000
2%
$10,100
505,000
2.1%
$10,605
505,000
2.2%
$11,110
505,000
2.3%
$11,615
505,000
2.4%
$12,120
505,000
2.5%
$12,625
505,000
2.6%
$13,130
505,000
2.7%
$13,635
505,000
2.8%
$14,140
505,000
2.9%
$14,645
505,000
3%
$15,150
Taxes Using 50% Value and Mills
Taxable Value
Millage Rate (per $1,000)
Property Taxes
252,500
$2 per $1,000
$505
252,500
$4 per $1,000
$1,010
252,500
$6 per $1,000
$1,515
252,500
$8 per $1,000
$2,020
252,500
$10 per $1,000
$2,525
252,500
$12 per $1,000
$3,030
252,500
$14 per $1,000
$3,535
252,500
$16 per $1,000
$4,040
252,500
$18 per $1,000
$4,545
252,500
$20 per $1,000
$5,050
252,500
$22 per $1,000
$5,555
252,500
$24 per $1,000
$6,060
252,500
$26 per $1,000
$6,565
252,500
$28 per $1,000
$7,070
252,500
$30 per $1,000
$7,575
252,500
$32 per $1,000
$8,080
252,500
$34 per $1,000
$8,585
252,500
$36 per $1,000
$9,090
252,500
$38 per $1,000
$9,595
252,500
$40 per $1,000
$10,100
252,500
$42 per $1,000
$10,605
252,500
$44 per $1,000
$11,110
252,500
$46 per $1,000
$11,615
252,500
$48 per $1,000
$12,120
252,500
$50 per $1,000
$12,625
252,500
$52 per $1,000
$13,130
252,500
$54 per $1,000
$13,635
252,500
$56 per $1,000
$14,140
252,500
$58 per $1,000
$14,645
252,500
$60 per $1,000
$15,150
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 $252,500, a rate of 40 mills would have property taxes of $10,100.
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.