Calculate property taxes on a 517,000 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 $206,800. However, the house is worth much more, and you pay $517,000. In this scenario, your new taxable value could be $517,000, and if the tax rate is 2%, the new tax bill could be $10,340/year even though the previous owner paid just $4,136.
Previous Owner
New Owner
Taxable Value
$206,800
$517,000
Tax Rate
2%
2%
Property Taxes
$4,136
$10,340
Estimate Property Taxes on a 517,000 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
517,000
0.1%
$517
517,000
0.2%
$1,034
517,000
0.3%
$1,551
517,000
0.4%
$2,068
517,000
0.5%
$2,585
517,000
0.6%
$3,102
517,000
0.7%
$3,619
517,000
0.8%
$4,136
517,000
0.9%
$4,653
517,000
1%
$5,170
517,000
1.1%
$5,687
517,000
1.2%
$6,204
517,000
1.3%
$6,721
517,000
1.4%
$7,238
517,000
1.5%
$7,755
517,000
1.6%
$8,272
517,000
1.7%
$8,789
517,000
1.8%
$9,306
517,000
1.9%
$9,823
517,000
2%
$10,340
517,000
2.1%
$10,857
517,000
2.2%
$11,374
517,000
2.3%
$11,891
517,000
2.4%
$12,408
517,000
2.5%
$12,925
517,000
2.6%
$13,442
517,000
2.7%
$13,959
517,000
2.8%
$14,476
517,000
2.9%
$14,993
517,000
3%
$15,510
Taxes Using 50% Value and Mills
Taxable Value
Millage Rate (per $1,000)
Property Taxes
258,500
$2 per $1,000
$517
258,500
$4 per $1,000
$1,034
258,500
$6 per $1,000
$1,551
258,500
$8 per $1,000
$2,068
258,500
$10 per $1,000
$2,585
258,500
$12 per $1,000
$3,102
258,500
$14 per $1,000
$3,619
258,500
$16 per $1,000
$4,136
258,500
$18 per $1,000
$4,653
258,500
$20 per $1,000
$5,170
258,500
$22 per $1,000
$5,687
258,500
$24 per $1,000
$6,204
258,500
$26 per $1,000
$6,721
258,500
$28 per $1,000
$7,238
258,500
$30 per $1,000
$7,755
258,500
$32 per $1,000
$8,272
258,500
$34 per $1,000
$8,789
258,500
$36 per $1,000
$9,306
258,500
$38 per $1,000
$9,823
258,500
$40 per $1,000
$10,340
258,500
$42 per $1,000
$10,857
258,500
$44 per $1,000
$11,374
258,500
$46 per $1,000
$11,891
258,500
$48 per $1,000
$12,408
258,500
$50 per $1,000
$12,925
258,500
$52 per $1,000
$13,442
258,500
$54 per $1,000
$13,959
258,500
$56 per $1,000
$14,476
258,500
$58 per $1,000
$14,993
258,500
$60 per $1,000
$15,510
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 $258,500, a rate of 40 mills would have property taxes of $10,340.
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.