Calculate property taxes on a 515,000 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 $206,000. However, the house is worth much more, and you pay $515,000. In this scenario, your new taxable value could be $515,000, and if the tax rate is 2%, the new tax bill could be $10,300/year even though the previous owner paid just $4,120.
Previous Owner
New Owner
Taxable Value
$206,000
$515,000
Tax Rate
2%
2%
Property Taxes
$4,120
$10,300
Estimate Property Taxes on a 515,000 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
515,000
0.1%
$515
515,000
0.2%
$1,030
515,000
0.3%
$1,545
515,000
0.4%
$2,060
515,000
0.5%
$2,575
515,000
0.6%
$3,090
515,000
0.7%
$3,605
515,000
0.8%
$4,120
515,000
0.9%
$4,635
515,000
1%
$5,150
515,000
1.1%
$5,665
515,000
1.2%
$6,180
515,000
1.3%
$6,695
515,000
1.4%
$7,210
515,000
1.5%
$7,725
515,000
1.6%
$8,240
515,000
1.7%
$8,755
515,000
1.8%
$9,270
515,000
1.9%
$9,785
515,000
2%
$10,300
515,000
2.1%
$10,815
515,000
2.2%
$11,330
515,000
2.3%
$11,845
515,000
2.4%
$12,360
515,000
2.5%
$12,875
515,000
2.6%
$13,390
515,000
2.7%
$13,905
515,000
2.8%
$14,420
515,000
2.9%
$14,935
515,000
3%
$15,450
Taxes Using 50% Value and Mills
Taxable Value
Millage Rate (per $1,000)
Property Taxes
257,500
$2 per $1,000
$515
257,500
$4 per $1,000
$1,030
257,500
$6 per $1,000
$1,545
257,500
$8 per $1,000
$2,060
257,500
$10 per $1,000
$2,575
257,500
$12 per $1,000
$3,090
257,500
$14 per $1,000
$3,605
257,500
$16 per $1,000
$4,120
257,500
$18 per $1,000
$4,635
257,500
$20 per $1,000
$5,150
257,500
$22 per $1,000
$5,665
257,500
$24 per $1,000
$6,180
257,500
$26 per $1,000
$6,695
257,500
$28 per $1,000
$7,210
257,500
$30 per $1,000
$7,725
257,500
$32 per $1,000
$8,240
257,500
$34 per $1,000
$8,755
257,500
$36 per $1,000
$9,270
257,500
$38 per $1,000
$9,785
257,500
$40 per $1,000
$10,300
257,500
$42 per $1,000
$10,815
257,500
$44 per $1,000
$11,330
257,500
$46 per $1,000
$11,845
257,500
$48 per $1,000
$12,360
257,500
$50 per $1,000
$12,875
257,500
$52 per $1,000
$13,390
257,500
$54 per $1,000
$13,905
257,500
$56 per $1,000
$14,420
257,500
$58 per $1,000
$14,935
257,500
$60 per $1,000
$15,450
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 $257,500, a rate of 40 mills would have property taxes of $10,300.
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.