Calculate property taxes on a 513,000 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 $205,200. However, the house is worth much more, and you pay $513,000. In this scenario, your new taxable value could be $513,000, and if the tax rate is 2%, the new tax bill could be $10,260/year even though the previous owner paid just $4,104.
Previous Owner
New Owner
Taxable Value
$205,200
$513,000
Tax Rate
2%
2%
Property Taxes
$4,104
$10,260
Estimate Property Taxes on a 513,000 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
513,000
0.1%
$513
513,000
0.2%
$1,026
513,000
0.3%
$1,539
513,000
0.4%
$2,052
513,000
0.5%
$2,565
513,000
0.6%
$3,078
513,000
0.7%
$3,591
513,000
0.8%
$4,104
513,000
0.9%
$4,617
513,000
1%
$5,130
513,000
1.1%
$5,643
513,000
1.2%
$6,156
513,000
1.3%
$6,669
513,000
1.4%
$7,182
513,000
1.5%
$7,695
513,000
1.6%
$8,208
513,000
1.7%
$8,721
513,000
1.8%
$9,234
513,000
1.9%
$9,747
513,000
2%
$10,260
513,000
2.1%
$10,773
513,000
2.2%
$11,286
513,000
2.3%
$11,799
513,000
2.4%
$12,312
513,000
2.5%
$12,825
513,000
2.6%
$13,338
513,000
2.7%
$13,851
513,000
2.8%
$14,364
513,000
2.9%
$14,877
513,000
3%
$15,390
Taxes Using 50% Value and Mills
Taxable Value
Millage Rate (per $1,000)
Property Taxes
256,500
$2 per $1,000
$513
256,500
$4 per $1,000
$1,026
256,500
$6 per $1,000
$1,539
256,500
$8 per $1,000
$2,052
256,500
$10 per $1,000
$2,565
256,500
$12 per $1,000
$3,078
256,500
$14 per $1,000
$3,591
256,500
$16 per $1,000
$4,104
256,500
$18 per $1,000
$4,617
256,500
$20 per $1,000
$5,130
256,500
$22 per $1,000
$5,643
256,500
$24 per $1,000
$6,156
256,500
$26 per $1,000
$6,669
256,500
$28 per $1,000
$7,182
256,500
$30 per $1,000
$7,695
256,500
$32 per $1,000
$8,208
256,500
$34 per $1,000
$8,721
256,500
$36 per $1,000
$9,234
256,500
$38 per $1,000
$9,747
256,500
$40 per $1,000
$10,260
256,500
$42 per $1,000
$10,773
256,500
$44 per $1,000
$11,286
256,500
$46 per $1,000
$11,799
256,500
$48 per $1,000
$12,312
256,500
$50 per $1,000
$12,825
256,500
$52 per $1,000
$13,338
256,500
$54 per $1,000
$13,851
256,500
$56 per $1,000
$14,364
256,500
$58 per $1,000
$14,877
256,500
$60 per $1,000
$15,390
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 $256,500, a rate of 40 mills would have property taxes of $10,260.
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.