Mill Rate Calculator

Mill Rate Calculator

Estimated Annual Tax

$0.00

function calculatePropertyTax() { var assessedValue = document.getElementById("assessedValue").value; var millRate = document.getElementById("millRate").value; var resultDiv = document.getElementById("millResult"); var taxDisplay = document.getElementById("taxDisplay"); var formulaBreakdown = document.getElementById("formulaBreakdown"); if (assessedValue > 0 && millRate > 0) { // The Mill Rate formula: (Assessed Value / 1000) * Mill Rate var propertyTax = (parseFloat(assessedValue) / 1000) * parseFloat(millRate); taxDisplay.innerHTML = "$" + propertyTax.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); formulaBreakdown.innerHTML = "Calculation: (" + assessedValue + " / 1,000) × " + millRate; resultDiv.style.display = "block"; } else { alert("Please enter positive values for both the Assessed Value and the Mill Rate."); resultDiv.style.display = "none"; } }

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Understanding the Mill Rate and Property Taxes

If you own property or are looking to buy a home, understanding the mill rate is essential for budgeting. The mill rate is the amount of tax payable per dollar of the assessed value of a property. The term "mill" comes from the Latin word "millesimum," meaning one-thousandth. Therefore, one mill represents $1 of tax for every $1,000 of assessed property value.

How to Use the Mill Rate Calculator

To use this tool effectively, you need two pieces of information usually provided by your local municipality or tax assessor's office:

• Assessed Property Value: This is the value assigned to your home by a government assessor. Note that this is often different from the market value (what you could sell the home for).
• The Mill Rate: This is the tax rate set by your local city, town, or county to cover public services like schools, emergency services, and infrastructure.

The Mill Rate Formula

The mathematical formula to determine your property tax is straightforward:

Property Tax = (Assessed Value / 1,000) × Mill Rate

Real-World Example

Imagine your home has an assessed value of $300,000 and your local municipality has set a mill rate of 20. Using the formula:

1. Divide the value by 1,000: $300,000 / 1,000 = 300 units of "mills".
2. Multiply by the mill rate: 300 × 20 = $6,000.

In this scenario, your annual property tax obligation would be $6,000.

Why Do Mill Rates Change?

Local governments adjust mill rates based on their budgetary needs. If the city needs more funding for new schools or road repairs, and the total property values in the area haven't increased, they may raise the mill rate. Conversely, if property values rise significantly, the city might lower the mill rate to maintain the same level of tax revenue without over-burdening residents.

It is important to remember that different taxing jurisdictions (city, county, school district) may each have their own mill rate. Your final tax bill is usually the sum of all these individual rates applied to your property's assessed value.