We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Finance

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What are Mill Rates?

Mary McMahon
By
Updated: May 17, 2024
Views: 8,530
Share

Mill rates are property taxes which are levied on the basis of the value of the property. Many municipalities express their property tax rates in terms of mill rates. Property deeds usually indicate which taxes will be levied on the property, and people can also get information about which taxes will apply to their property from local government agencies which handle property tax matters.

The mill rate reflects a tax per thousand currency units. In the United States, for example, a mill rate of 23.4 would mean that for every thousand United States Dollars (USD), a tax of $23.40 USD would be due. The total taxes due are calculated by multiplying the property's assessed value by the mill rate, and divide by one thousand. If, for example, a property was worth $670,000 USD according to the assessor in an area with a mill rate of 23.4, the owner would owe $15,678 USD in property taxes annually.

In some regions, people pay property taxes once a year, while in others they may be due on a quarterly or semiannual basis. It is not uncommon for the mill rate to vary considerably. In addition to a base rate set by a regional government, additional taxes may be levied by schools, fire districts, and so forth to pay for their services. Each of these taxes would be added to the base tax to create a mill rate.

Someone living in a rural area might have a relatively low mill rate, while someone in an urban area might have a higher mill rate as the result of taxes assessed by government services in the area. While the higher property taxes may be a burden, the increased quality of government services is viewed as a bonus, especially when people have need of these services. Conversely, rural areas can have difficulty funding needed services as a result of low tax rates, comparatively few tax payers, or low property values.

Mill rates are also sometimes known as millage rates or permille rates. All of these words reference the root “mill,” which means “one thousand.” In order for mill rates to rise, voters generally need to approve a proposal which spells out the amount of the rise and the purpose. Voters are often reluctant to vote for tax increases because they do not want to pay higher taxes, although many are perfectly happy to freeze mill rates, even though inflation can mean that local government agencies which rely on taxes for support have less and less money to work with.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Mary McMahon
By Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a WiseGeek researcher and writer. Mary has a liberal arts degree from Goddard College and spends her free time reading, cooking, and exploring the great outdoors.

Editors' Picks

Discussion Comments
Mary McMahon
Mary McMahon

Ever since she began contributing to the site several years ago, Mary has embraced the exciting challenge of being a...

Learn more
Share
https://www.wisegeek.net/what-are-mill-rates.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.