• The mill rate is the tax rate - the amount of tax payable per dollar of the assessed value of the property.

  • The mill comes from the Latin word millesimum, meaning thousandth.
  • When used in property tax, $1 million equals $1 of property tax charged on $1,000 of the assessed value of the property.
  • Government agencies set interest rates based on the total value of property within their jurisdiction to provide the necessary tax revenue to cover projected costs - roads, schools, emergency services, etc. - in their annual budgets.
  • Property taxes are calculated by multiplying the assessed, taxable value of the property by the interest rate, and then dividing that amount by 1,000.