valuation
mill rate
A mill rate is a way of expressing a property tax rate, where one mill equals one-tenth of a cent, or $1 of tax per $1,000 of assessed value. To calculate the tax, multiply the assessed value by the mill rate and divide by 1,000. Local taxing bodies set mill rates based on their budgets and the total assessed value in the area.
- Exam tip
- Convert carefully: 1 mill = $0.001. So 25 mills equals $25 per $1,000, or 2.5% of assessed value.
- Example
- A home is assessed at $200,000 and the rate is 30 mills. The tax is $200,000 × 30 ÷ 1,000 = $6,000 per year.
Related terms & state variants
Sources
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Last verified: 2026-10-23