Millage Rate Calculator
What is a Millage Rate?
A millage rate, also known as a mill rate, is a unit of measurement used to calculate property taxes. It represents the amount of tax per $1,000 of assessed property value. One mill is equivalent to one-tenth of a cent, or $0.001.
The millage rate is determined by local governments (counties, cities, school districts, etc.) based on their required budget for public services and the total assessed value of taxable property within their jurisdiction. The formula used to calculate the millage rate is:
Millage Rate = (Total Annual Budget / Total Assessed Property Value) * 1000
For example, if a local government needs to raise $5,000,000 to fund its operations and the total assessed value of all taxable properties in its area is $100,000,000, the millage rate would be calculated as follows:
Millage Rate = ($5,000,000 / $100,000,000) * 1000 = 0.05 * 1000 = 50 mills.
This means that for every $1,000 of assessed property value, the property owner would owe $50 in taxes to that taxing authority. The final property tax bill for an individual property owner is typically calculated by multiplying their property's assessed value by the sum of all applicable millage rates (from county, city, school district, etc.) and then dividing by 1,000.