Mill rate
The property tax rate expressed as dollars per $1,000 of assessed value. A 20-mill rate on a $200,000 assessed value is $4,000 a year in tax.
Get the steps of a home sale by email, in order, one short email at a time.
Eight short emails, free. Unsubscribe any time. What's in them
Where this comes up: getting ready
Part 1 of 4
Why a seller cares
The mill rate turns the assessed value into the tax bill, and buyers' lenders use it to estimate escrow. A rate change after a levy or a reassessment is why the buyer's estimate can differ from your bill.
Part 2 of 4
A simple example
Assessed value $180,000, mill rate 22. The tax is $180,000 times 0.022, or $3,960 a year.
| The arithmetic | For this home |
|---|---|
| Assessed value | $180,000 |
| Mill rate, 22 mills | $22 per $1,000 of assessed value |
| Annual tax | $3,960 |
Mills are dollars per thousand. The bill is the rate times the assessment.
Part 3 of 4
What people get wrong
That the rate is a percentage. A 22-mill rate is 2.2%, and the difference has confused more than one estimate.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines mill rate in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.