Millage Rate

The millage rate, also referred to as the mill rate, is a figure representing the amount per $1,000 of the assessed value of property, which is used to calculate the amount of property tax due.

The term 'mill' derives from the Latin 'millesimum', meaning 'thousandth part'. Therefore, a mill is 1/1,000 of a dollar, or $0.001.

For example, if the local millage rate is 20 mills, then a property owner would pay $20 in tax for every $1,000 of assessed value. So, if a property were assessed at $200,000, the annual property tax would be 200 (representing $200,000 divided by $1,000) multiplied by 20, equaling $4,000.

Millage rates are set by local governments (city, county, school district, etc.) and can vary greatly depending on the location of the property. They are typically used to fund local services such as schools, police, and fire departments. Property owners can often find their local millage rate by looking at their tax bill or contacting their local tax assessor's office.