Mill Rate

What is the 'Mill Rate'

The Mill rate is the amount of tax payable per dollar of the assessed value of a property. The mill rate is based on "mills"; as each mill is one-thousandth of a currency unit, one mill is equivalent to one-tenth of a cent or $0.001. Property tax in dollar terms is calculated by multiplying the assessed property value and the mill rate and dividing by 1,000. As a property may be subject to tax by a number of different authorities, mill rates are set by each taxing authority so as to meet the revenue projections in their budgets.

BREAKING DOWN 'Mill Rate'

For a given jurisdiction, mill rates may depend on the classification of property, whether it is residential, commercial, industrial, agricultural and so on.


As an example of using the mill rate to calculate the dollar amount of property tax payable, consider a property with an assessed value of $300,000 that is located in a jurisdiction with a mill rate of 15. The property tax levied would therefore be $4,500.

RELATED TERMS
  1. Mill Levy

    The assessed property tax rate used by local governments and ...
  2. John Stuart Mill

    A nineteenth-century British philosopher and classical liberal ...
  3. Millage Rate

    The amount per $1,000 that is used to calculate taxes on property. ...
  4. Impression

    A metric used to quantify the display of an advertisement on ...
  5. Property Tax

    A tax assessed on real estate by the local government. The tax ...
  6. Tax Roll

    A breakdown of all property within a given jurisdiction, such ...
Related Articles
  1. Personal Finance

    How Property Taxes Are Calculated

    Property taxes are calculated through use of the mill levy and the assessed property values.
  2. Personal Finance

    This Is How Property Taxes Are Calculated

    Understanding how property taxes work will ensure that you won't be overcharged.
  3. Markets

    General Mills Mentioned as Takeover Target (GIS)

    An offer of $86 per share amounts to a premium of 35%, a hefty premium.
  4. Personal Finance

    Your Property Tax Assessment: What Does It Mean?

    The amount of a property tax bill is based on the property’s value, the exemptions it qualifies for, its use and the local property tax rate.
  5. Personal Finance

    Your Property Tax Assessment: What Does It Mean?

    Property taxes are a primary source of revenue for governments, and they’re a big expense for homeowners. They can vary widely depending on where you live.
  6. Markets

    Is General Mills a Hedge Fund Takeover Target?

    Cereal maker General Mills (NYSE: GIS) has been the subject of M&A rumors before, and those discussions have just as often put it in the role of potential acquirer as potential target. But ...
  7. Managing Wealth

    Feeling Risk-Averse? Consider These Investments

    These investments offer risk-averse investors resiliency to bear markets while paying sustainable dividends or interest.
  8. Personal Finance

    The 7 Best States For Property Taxes, and Why

    Understand why some states have high property taxes while others have low property taxes. Learn about the states with the lowest property taxes.
  9. Investing

    Will This General Mills Move Revive Cereal Sales?

    Cereal sales have been slipping for years as Americans turn to healthier fare in the morning -- or at least, foods that are perceived to be better for you. That trend has kept General Mills ...
  10. Personal Finance

    Getting U.S. Tax Deductions On Foreign Real Estate

    If your home or second home is not in the United States, you can still get U.S. tax deductions. How many and what kind depends on whether you also rent it.
RELATED FAQS
  1. How are real estate taxes calculated?

    Find out how real estate taxes are calculated; failure to pay these taxes that can be a substantial annual expense can lead ... Read Answer >>
  2. Is the money I received from my deceased brother's checking and savings accounts ...

    In one bank, he had my name on the accounts. In another bank, he had me as a POD. ... Read Answer >>
  3. How does securitization play a role in the implementation of PACE financing?

  4. Why did the U.S. government take control of the steel industry in 1952?

    In early 1950, Senator McCarthy began seeing communists in every shadow, prompting him to accuse the Truman administration ... Read Answer >>
  5. In which US cities do high-income earners pay the most tax?

    See which U.S. cities punish high net worth individuals the most through the highest levels of income taxes, property taxes ... Read Answer >>
  6. How is Net Operating Income (NOI) used in real estate?

    Find out more about net operating income, what it measures and how it is used to analyze a real estate property's return. Read Answer >>
Trading Center