Calculate property taxes on a 507,000 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 $202,800. However, the house is worth much more, and you pay $507,000. In this scenario, your new taxable value could be $507,000, and if the tax rate is 2%, the new tax bill could be $10,140/year even though the previous owner paid just $4,056.
Previous Owner
New Owner
Taxable Value
$202,800
$507,000
Tax Rate
2%
2%
Property Taxes
$4,056
$10,140
Estimate Property Taxes on a 507,000 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
507,000
0.1%
$507
507,000
0.2%
$1,014
507,000
0.3%
$1,521
507,000
0.4%
$2,028
507,000
0.5%
$2,535
507,000
0.6%
$3,042
507,000
0.7%
$3,549
507,000
0.8%
$4,056
507,000
0.9%
$4,563
507,000
1%
$5,070
507,000
1.1%
$5,577
507,000
1.2%
$6,084
507,000
1.3%
$6,591
507,000
1.4%
$7,098
507,000
1.5%
$7,605
507,000
1.6%
$8,112
507,000
1.7%
$8,619
507,000
1.8%
$9,126
507,000
1.9%
$9,633
507,000
2%
$10,140
507,000
2.1%
$10,647
507,000
2.2%
$11,154
507,000
2.3%
$11,661
507,000
2.4%
$12,168
507,000
2.5%
$12,675
507,000
2.6%
$13,182
507,000
2.7%
$13,689
507,000
2.8%
$14,196
507,000
2.9%
$14,703
507,000
3%
$15,210
Taxes Using 50% Value and Mills
Taxable Value
Millage Rate (per $1,000)
Property Taxes
253,500
$2 per $1,000
$507
253,500
$4 per $1,000
$1,014
253,500
$6 per $1,000
$1,521
253,500
$8 per $1,000
$2,028
253,500
$10 per $1,000
$2,535
253,500
$12 per $1,000
$3,042
253,500
$14 per $1,000
$3,549
253,500
$16 per $1,000
$4,056
253,500
$18 per $1,000
$4,563
253,500
$20 per $1,000
$5,070
253,500
$22 per $1,000
$5,577
253,500
$24 per $1,000
$6,084
253,500
$26 per $1,000
$6,591
253,500
$28 per $1,000
$7,098
253,500
$30 per $1,000
$7,605
253,500
$32 per $1,000
$8,112
253,500
$34 per $1,000
$8,619
253,500
$36 per $1,000
$9,126
253,500
$38 per $1,000
$9,633
253,500
$40 per $1,000
$10,140
253,500
$42 per $1,000
$10,647
253,500
$44 per $1,000
$11,154
253,500
$46 per $1,000
$11,661
253,500
$48 per $1,000
$12,168
253,500
$50 per $1,000
$12,675
253,500
$52 per $1,000
$13,182
253,500
$54 per $1,000
$13,689
253,500
$56 per $1,000
$14,196
253,500
$58 per $1,000
$14,703
253,500
$60 per $1,000
$15,210
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 $253,500, a rate of 40 mills would have property taxes of $10,140.
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.