Mill Rate to Percentage Converter
mills
Enter the tax rate per 1,000 of assessed value.
$
Enter value to see estimated annual tax.
Equivalent Percentage
0.00%
Decimal Value:
0.0000
Mills per Dollar:
$0.00
Estimated Annual Property Tax:
$0.00
Understanding the Mill Rate to Percentage Conversion
Property taxes are often confusing because they use a unit of measurement called the "Mill Rate" (also known as a millage rate or mill levy), which is distinct from the standard percentages used in sales tax or income tax. This calculator helps homeowners, real estate investors, and students instantly convert these figures into understandable terms.
What is a Mill Rate?
The term "mill" comes from the Latin word millesimum, meaning "thousandth." In financial terms, one mill represents one dollar of tax for every one thousand dollars of assessed property value.
The Golden Rule of Mills:
1 Mill = 1/1000 = 0.001
10 Mills = 1%
1 Mill = 1/1000 = 0.001
10 Mills = 1%
How to Calculate Mill Rate to Percentage
While a mill rate is expressed per 1,000, a percentage is expressed per 100. Therefore, to convert a mill rate to a percentage, you simply divide by 10.
The Formulas
- Mill Rate to Percentage: Mill Rate ÷ 10 = Percentage (%)
- Mill Rate to Decimal: Mill Rate ÷ 1,000 = Decimal
- Calculate Tax Bill: (Assessed Value × Mill Rate) ÷ 1,000 = Total Tax
Example Calculation
Let's say your local municipality has set a mill rate of 24 mills, and your home represents an assessed value of $300,000.
- Convert to Percentage: 24 ÷ 10 = 2.4% effective tax rate.
- Calculate Tax: ($300,000 × 24) ÷ 1,000.
- Result: Your estimated annual property tax would be $7,200.
Why is Assessed Value Different from Market Value?
When using this calculator, it is crucial to use the Assessed Value, not necessarily the price you paid for the home (Market Value). Local tax assessors determine the assessed value, and in many jurisdictions, this figure is a percentage of the market value (an assessment ratio). Always check your latest tax assessment letter for the accurate figure to ensure your calculation is correct.