Explanation of Millage
The term "millage" means one thousandth. In property tax, 1 mill equals $1 tax per $1,000 of a property’s taxable value. Millage rates tax property. Millage rates come from different agencies like cities, counties, school boards. They combine to determine property taxes owed.
Millage matters because different rates change property taxes owed. Rates set yearly, based on budget needs. Some years rates stay the same, sometimes they increase.
Calculation of Millage
To calculate millage: Divide tax amount needed by total land value. Multiply result by 1,000. This gives the mill rate.
To find taxes owed: Divide mill rate by 1,000 to make a percentage. Multiply the percentage by your property’s taxable value. This determines taxes owed.
Why Millage is Named So
The term “millage” derives from the Latin word millesimum, meaning thousandth. In property tax, 1 mill equals $1 tax per $1,000 of a property’s taxable value.
"Millage," or "mill rate," calculates property tax liability in some states. A mill equals $1.00 tax per $1,000 of assessment.
Local governments set millage rates, including school districts, cities, counties, and public agencies. These combine to determine taxes owed.