If you haven’t filed your taxes yet, don’t panic — but act fast.
Mill is a money term you need to understand. Here’s what it means.
What is a mill?
A mill is a unit of taxation used in property taxes that equals $1 for every $1,000 of taxable value of the property.
The term mill also refers to the millage rate. To get the millage rate of a piece of property, tax assessors multiply the assessed value of the property by the millage levy. The millage levy is a combination of various taxes within a county, including the percent calculated for city taxes and taxes for schools.
Examples of the mill rate
When determining what the millage rate is, you must take into account the many different entities and agencies that levy a tax on properties within a county. Primarily, this includes county and school district taxes, as well as city taxes for those who live within the corporate limits of a nearby city.
The millage rate is determined by the various boards of the county, school and city. They determine how much money they need to run their governmental units.
For example, the county might impose a 10 mill rate, while the city requires residents to pay a 5 mill rate. Added together, residents would pay $1,500 on every $100,000 of the value of their property.
Many times, the mill rate goes up or down depending on the economy and the overall value of the properties in the region. That is where the assessed property value comes in. This amount goes up or down, depending on the overall condition of the property, property values in the area and if you make any improvements to the property.
More From Bankrate
4 min read Apr 19, 2022
Typically, taxpayers have two options: Take the itemized deductions or take the standard deduction.3 min read Apr 18, 2022
Regardless of what may cause a person to miss the tax-filing deadline, there are potential consequences.5 min read Apr 18, 2022
Applying for more time to file your taxes is easy. Just don’t put off paying your tax bill.3 min read Apr 15, 2022
The fast-approaching deadline for filing your 2021 taxes is April 18, 2022.2 min read Apr 11, 2022
There are seven tax brackets for most ordinary income: 10%, 12%, 22%, 24%, 32%, 35% and 37%.4 min read Apr 07, 2022
The credit was confusing even before Congress revamped it for 2021.7 min read Apr 01, 2022
Here’s how to use a Roth IRA to pay for your child’s college tuition.4 min read Mar 28, 2022
This popular tax break can be one of the trickiest.5 min read Mar 24, 2022