Mill Rate

The mill rate is a tax rate used to calculate property taxes. It is expressed in mills, where one mill equals one dollar in tax per $1,000 of assessed property value. For example, if the mill rate is 20 mills, a property valued at $100,000 would incur $2,000 in taxes ($100,000 divided by $1,000 times 20). The mill rate is set by local governments to fund services like schools, roads, and public safety. Understanding the mill rate helps homeowners estimate their property tax obligations based on their property's assessed value.