Calculate property taxes on a 518,000 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 $207,200. However, the house is worth much more, and you pay $518,000. In this scenario, your new taxable value could be $518,000, and if the tax rate is 2%, the new tax bill could be $10,360/year even though the previous owner paid just $4,144.
Previous Owner
New Owner
Taxable Value
$207,200
$518,000
Tax Rate
2%
2%
Property Taxes
$4,144
$10,360
Estimate Property Taxes on a 518,000 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
518,000
0.1%
$518
518,000
0.2%
$1,036
518,000
0.3%
$1,554
518,000
0.4%
$2,072
518,000
0.5%
$2,590
518,000
0.6%
$3,108
518,000
0.7%
$3,626
518,000
0.8%
$4,144
518,000
0.9%
$4,662
518,000
1%
$5,180
518,000
1.1%
$5,698
518,000
1.2%
$6,216
518,000
1.3%
$6,734
518,000
1.4%
$7,252
518,000
1.5%
$7,770
518,000
1.6%
$8,288
518,000
1.7%
$8,806
518,000
1.8%
$9,324
518,000
1.9%
$9,842
518,000
2%
$10,360
518,000
2.1%
$10,878
518,000
2.2%
$11,396
518,000
2.3%
$11,914
518,000
2.4%
$12,432
518,000
2.5%
$12,950
518,000
2.6%
$13,468
518,000
2.7%
$13,986
518,000
2.8%
$14,504
518,000
2.9%
$15,022
518,000
3%
$15,540
Taxes Using 50% Value and Mills
Taxable Value
Millage Rate (per $1,000)
Property Taxes
259,000
$2 per $1,000
$518
259,000
$4 per $1,000
$1,036
259,000
$6 per $1,000
$1,554
259,000
$8 per $1,000
$2,072
259,000
$10 per $1,000
$2,590
259,000
$12 per $1,000
$3,108
259,000
$14 per $1,000
$3,626
259,000
$16 per $1,000
$4,144
259,000
$18 per $1,000
$4,662
259,000
$20 per $1,000
$5,180
259,000
$22 per $1,000
$5,698
259,000
$24 per $1,000
$6,216
259,000
$26 per $1,000
$6,734
259,000
$28 per $1,000
$7,252
259,000
$30 per $1,000
$7,770
259,000
$32 per $1,000
$8,288
259,000
$34 per $1,000
$8,806
259,000
$36 per $1,000
$9,324
259,000
$38 per $1,000
$9,842
259,000
$40 per $1,000
$10,360
259,000
$42 per $1,000
$10,878
259,000
$44 per $1,000
$11,396
259,000
$46 per $1,000
$11,914
259,000
$48 per $1,000
$12,432
259,000
$50 per $1,000
$12,950
259,000
$52 per $1,000
$13,468
259,000
$54 per $1,000
$13,986
259,000
$56 per $1,000
$14,504
259,000
$58 per $1,000
$15,022
259,000
$60 per $1,000
$15,540
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 $259,000, a rate of 40 mills would have property taxes of $10,360.
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.