How to Calculate Mill Rate

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Property Tax Mill Rate Calculator

Understanding Mill Rate

The mill rate is a crucial component in calculating property taxes. A "mill" represents one-thousandth of a dollar, or $1 of tax for every $1,000 of assessed property value. In simpler terms, it's a tax rate expressed in mills. The mill rate is determined by dividing the total amount of money a taxing jurisdiction (like a municipality or school district) needs to raise from property taxes by the total assessed value of all taxable property within that jurisdiction.

How it's Calculated:

The basic formula to determine the mill rate is:

Mill Rate = (Total Budget / Total Taxable Assessed Value) * 1000

Once the mill rate is established, it is applied to the assessed value of an individual property to determine the property tax owed.

Calculating Individual Property Tax:

Property Tax = (Assessed Property Value / 1000) * Mill Rate OR Property Tax = Assessed Property Value * (Mill Rate / 1000)

Example Scenario: Let's say a municipality needs to raise $15,000,000 (Total Budget) and the total assessed value of all taxable properties in the jurisdiction is $500,000,000 (Total Taxable Assessed Value).

First, calculate the mill rate:

Mill Rate = ($15,000,000 / $500,000,000) * 1000 = 0.03 * 1000 = 30 mills

This means the tax rate is 30 mills. If your property is assessed at $250,000 (Assessed Property Value), your property tax would be:

Property Tax = ($250,000 / 1000) * 30 = 250 * 30 = $7,500

This calculator helps you quickly determine the mill rate based on the jurisdiction's budget and total taxable value.

function calculateMillRate() { var assessedValue = parseFloat(document.getElementById("assessedValue").value); var totalBudget = parseFloat(document.getElementById("totalBudget").value); var taxableValue = parseFloat(document.getElementById("taxableValue").value); var resultDiv = document.getElementById("result"); if (isNaN(assessedValue) || isNaN(totalBudget) || isNaN(taxableValue)) { resultDiv.innerHTML = "Please enter valid numbers for all fields."; return; } if (taxableValue <= 0) { resultDiv.innerHTML = "Total taxable value must be greater than zero."; return; } var millRate = (totalBudget / taxableValue) * 1000; // Calculate individual property tax using the determined mill rate var propertyTax = (assessedValue / 1000) * millRate; resultDiv.innerHTML = "Mill Rate: " + millRate.toFixed(2) + " millsEstimated Property Tax: $" + propertyTax.toFixed(2); }

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