What Is a Mill Rate?
A mill rate, or millage rate, is a way of expressing a property tax rate: one mill equals one-thousandth of a currency unit, so a rate of 1 mill means 1 of tax for every 1,000 of taxable value. To convert mills to a percentage, divide by 10 — 20 mills equals 2%.
Calculating Tax
Property tax = taxable value × mill rate ÷ 1,000. A taxable value of 150,000 at 20 mills gives 3,000 a year.
Combined Rates
Bills often combine several levies — for example city, county, and school district — each stated in mills.
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🔗 Related Terms
More Home Buying Terms
- Adjustable-Rate Mortgage (ARM)
- Appraisal Gap
- Bridge Loan
- Cash-Out Refinance
- Closing Costs
- Closing Disclosure
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.