If you pay property taxes, you've likely encountered the term "millage rate." While the term is often used interchangeably with tax rates, there are some key differences to understand. To help you better navigate the world of property taxes, here is an overview of the basics of understanding millage rates:
Millage rate, also called mill rate, comes from the Latin word for "one thousandth." Therefore, the millage rate is based on the amount per every one thousand dollars of property value. Multiple millage rates go into calculating property tax amounts, including those from various local agencies.
For example, public school boards have their millage rates they use to determine local school taxes based on the overall value of district property values. Other examples of taxing authorities with their millage rates include emergency services, community colleges, cities and counties.
Millage rates are a key component in deciding the amount you owe on your property taxes. To calculate individual property taxes, you take the property's assessed value and multiply it by the millage rate or rates. Here is the basic formula:
Assessed value x Millage rate
For example, if the assessed value of a home equals $135,000 and the local millage rate is 7% (70/1000), the estimated property tax amount comes to $9,450.
Because this formula can include multiple different rates, it can be tricky to determine exactly how much you'll owe in property taxes. However, you can usually find an individual property's millage rate on the deed. Using this rate and your property's tax-assessed value, you'll be able to find an estimation of your annual tax responsibility.
David has been helping clients with their real estate needs since 2006. On Hilton Head Island he has experienced and lived in the villa, gated, and non-gated communities. His love of this unique area and care of his client's individual needs are of utmost importance. Whether you seek a dream home or investment real estate he can help you achieve that goal.
He is the current President of the Property Owners Association of Burkes Beach, an upscale beachfront community located mid-island. He is an avid college football fan and University of Tennessee graduate in Business Management. He is the proud Father of five island children, Palmer, Baylor, Banks, Beres, and Jewels.
