How to Convert a Mill Rate to Taxes

The mill rate affects your property taxes.

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A mill equals one-thousandth of a dollar and is used to quantify property tax rates. The higher the millage rate, the greater the resulting property taxes. If you know the mill rate, you can figure your property tax bill. In addition, you also need to know the assessment rate for your property. For example, some areas might only tax homes at 75 percent of the actual value rather than the full value.

Step 1

Divide the mill rate by 1,000 to convert it to a decimal. For example, if the mill rate is 20, divide 20 by 1,000 to get 0.02.

Step 2

Convert the assessment ratio to a decimal. If the assessment ratio for your property is 75 percent, divide 75 by 100 to get 0.75.

Step 3

Multiply the mill rate expressed as a decimal by the assessment ratio expressed as a decimal to figure the effective tax rate for your property. In this example, multiply 0.02 by 0.75 to get an effective rate of 0.015.

Step 4

Multiply the effective tax rate by your property's assessed value to find your property tax. In this example, if the property is worth $260,000, multiply $260,000 by 0.015 to find your property tax equals $3,900.