Mill Rate Calculator

Calculate Mill Rate



Formula

The formula to calculate the Mill Rate is:

\[ MLR = \frac{T}{AV} \]

Where:

Example

Let's say the total taxes needed are $500,000 and the total assessed value is $25,000,000. The mill rate would be calculated as follows:

\[ MLR = \frac{500,000}{25,000,000} = 0.02 \]

So, the mill rate is 0.02.

What is a Mill Rate?

The mill rate is a property tax rate that is applied to the assessed value of a property. It is used to calculate the amount of property tax owed. The mill rate is expressed as a ratio of the total taxes needed to the total assessed value of all properties in a given area. This metric is important for municipalities to determine the amount of revenue needed to cover public services and infrastructure.