Millage Rate


DEFINITION of 'Millage Rate'

The amount per $1,000 that is used to calculate taxes on property. Millage rates are most often found in personal property taxes, where the expressed millage rate is multiplied by the total taxable value of the property to arrive at the property taxes due. Millage rates are also used by school boards to calculate local school taxes to be collected, based on a derivation of the total property value within school district boundaries.

BREAKING DOWN 'Millage Rate'

The term is derived from the root word mill, which means "thousand". Millage rates are often expressed mathematically with the symbol %o, as in 1%o, which is one part per thousand, or 0.1%. Millage rates for individual properties are usually found on the property deed itself.

  1. Real Estate

    Land plus anything on it, including buildings and natural resources.
  2. Assessment

    Occurs when an asset's value must be determined for the purpose ...
  3. Ad Valorem Tax

    A tax based on the assessed value of real estate or personal ...
  4. Assessor

    A local government official who determines the value of a property ...
  5. Mill Rate

    The amount of tax payable per dollar of the assessed value of ...
  6. Assessed Value

    The dollar value assigned to a property for purposes of measuring ...
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