Property Millage Tax Calculator

What is Property Millage Tax?

Property millage tax is a system of taxation where property owners pay a tax based on the assessed value of their property and the local tax rate, expressed in mills. One mill represents $1 of tax for every $1,000 of assessed property value. This tax is typically used to fund local services such as schools, roads, and emergency services.

The Property Millage Tax Formula

The formula for calculating property millage tax is:

\[Tax = \frac{Property Value \times Millage Rate}{1000}\]

Where:

• Tax = Annual property tax
• Property Value = Assessed value of the property
• Millage Rate = Tax rate expressed in mills

Step-by-Step Tax Calculation

1. Determine the assessed value of the property.
2. Identify the local millage rate.
3. Multiply the property value by the millage rate.
4. Divide the result by 1000 to get the annual tax amount.

Example Calculation

Let's calculate the property millage tax for a property valued at $200,000 with a millage rate of 10 mills:

1. Property Value = $200,000
2. Millage Rate = 10 mills
3. Apply the formula: \[Tax = \frac{200,000 \times 10}{1000} = \frac{2,000,000}{1000} = 2,000\]

The annual property tax would be $2,000.

Visual Representation

The blue portion of the bar represents the tax amount (1%) relative to the property value.