# What Is a Mill Rate, and How Are Property Taxes Calculated?

## How Do You Calculate Property Taxes Based on the Mill Rate?

The mill rate represents the amount of property tax that you pay on real estate. It is measured in mills, equivalent to a 10th of a percent. For example, a mill rate of 12 means that your property tax is equal to 1.2% of your property's assessed value. To calculate your property tax, multiply your property's mill rate by the assessed property value and divide it by 1,000.

## How Do You Find Your Mill Rate?

Mill rates are calculated by local and municipal governments based on their financial needs. You can usually find the millage rates for your area by calling or checking the website for your local government or assessor's office.

## How Do You Calculate Percentage From Mill Rate?

Property taxes are often measured in mills, representing a 10th of a percent. To determine the tax rate as a percentage, multiply the mill rate by 10.

## The Bottom Line

The mill rate is simply a tax rate that is used to assess the property tax within a jurisdiction. It utilizes a specific calculation (1 mill is equal to $1 in property tax levied per$1,000 of a property's assessed value) and this amount is used to pay for government expenses within the area where the property is situated.

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1. Cornell Law School, Legal Information Institute. "Millage."

2. Online Etymology Dictionary. "Mill (n.2)."

3. LibreTexts Mathematics. "Business Math: 7.2: Property Taxes."

4. Tax Foundation. "Where Do People Pay the Most in Property Taxes?"

5. Institute on Taxation and Economic Policy. "Property Tax Homestead Exemptions."

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