Millage Rate

The mill rate (or millage rate) is the tax rate used to calculate property taxes. One mill equals 1/1,000 of a currency unit—equivalently, $1 of tax for every $1,000 of assessed (taxable) property value.

Key points

• Mill rate = tax dollars per $1,000 of assessed value.
• Property tax = (Mill rate × Taxable assessed value) ÷ 1,000.
• Different local taxing bodies (municipalities, counties, school districts, special districts) each set mills; the combined total determines your bill.
• Assessed value may be a percentage of fair market value and can be reduced by exemptions (e.g., homestead).

How mill rates are set

Local governments calculate the revenue they need to fund budgets (services, schools, infrastructure, emergency services). After subtracting known revenues (grants, fees, etc.), the remaining revenue requirement is divided by the total taxable assessed value in the jurisdiction and then multiplied by 1,000 to produce the mill rate.

In formula form:
Mill Rate = (Budgetary revenue needed from property taxes ÷ Total taxable assessed value) × 1,000

How to calculate your property tax

1. Determine your taxable assessed value (assessed value minus any exemptions).
2. Find the combined mill rate for all taxing jurisdictions that apply to your property.
3. Apply the formula:

Property tax = (Mill rate × Taxable assessed value) ÷ 1,000

Example: Mill rate = 7; taxable value = $150,000
Property tax = (7 × 150,000) ÷ 1,000 = $1,050

Converting mills to a percentage

One mill = 0.1% (one‑tenth of a percent). To convert:
Percentage tax rate = Mill rate ÷ 10
Example: 12 mills → 12 ÷ 10 = 1.2%

Factors that affect your tax bill

• Multiple taxing authorities each add their mill rates.
• Assessment practices: assessed value may be a set percentage of market value (assessment ratio) and is usually updated periodically.
• Exemptions and abatements (e.g., homestead exemptions) reduce taxable value.
• Property type—residential, commercial, industrial—can be assessed at different rates.

Where to find your mill rate

• Local tax assessor’s or municipal finance office (website or phone).
• Your property tax bill or deed may list the combined mill rate and the component rates.

Practical tips

• Review your property assessment and compare to local market data. If you believe it’s too high, follow local procedures to request a reassessment or file an appeal.
• Check for exemptions (senior, veteran, homestead) that could lower taxable value.
• Remember the mill rate shown by a single jurisdiction is only part of your full tax burden—confirm all applicable districts.

Bottom line

The mill rate is a straightforward way to express property tax responsibility: dollars of tax per $1,000 of taxable assessed value. Knowing your mill rate(s) and taxable assessed value lets you quickly estimate your annual property tax and plan accordingly.