Mill Rate (Millage Rate)
The property tax rate expressed as dollars per $1,000 of assessed property value. One mill equals $1 of tax per $1,000 of assessed value.
How It Works
For example, a mill rate of 20 means a property assessed at $200,000 would owe $4,000 in property taxes (20 × $200,000 / $1,000). Mill rates vary enormously across cities — from under 5 mills in some Sun Belt cities to over 50 mills in older Northeastern cities. The total mill rate applied to a property may include levies from multiple taxing jurisdictions: city, county, school district, and special districts.
Related Terms
- Property Tax — A tax levied on real estate (land and buildings) based on assessed value. Property taxes are the single largest revenue source for most U.S. city governments.
- Assessed Value — The value assigned to a property by a government assessor for the purpose of calculating property taxes, which may differ from market value.
- Tax Levy — The total amount of property tax revenue a city authorizes to collect in a given year, calculated by applying the mill rate to the total assessed value of all taxable property.
About This Definition
This definition is part of the CitySpend Municipal Finance Glossary — 59 terms explaining how city governments fund and manage public services. All definitions are written in plain language for taxpayers, journalists, students, and municipal bond investors.