How Do You Calculate A Millage Rate?
The millage rate is the rate of property tax per $1,000 of assessed value on your home. It is commonly determined by your state or local government. The most basic way taxing authorities figure the millage rate for their jurisdiction is by first figuring out how much of the budget must be covered by the property tax and then assessing the total value of the properties in that jurisdiction. Once these figures are known, the millage rate can be calculated. Examine the jurisdiction’s budget to determine the amount of the budget that must be paid for by property taxes. This is the net budget. Determine the total value of the property in the jurisdiction by adding the assessed values of all properties. This is the gross tax digest. Deduct any exemptions and exempted properties from the gross tax digest. This is the net tax digest. Divide the net budget by the net tax digest and then multiply by $1,000 to determine the millage rate. For instance, if the net budget is $400,000 and the net tax
