What is a millage rate?
A millage rate is the amount per $1,000 of assessed value that taxing districts use to calculate local property taxes. For example, a home assessed at $100,000 in a district which levies a 5 mil real estate tax will owe $500 in taxes:
Millage Rate vs a Simple Percentage
So why use a millage rate in the first place? After all, a simple percentage is a more familiar concept for most people. Mainly, it’s for convenience due to the scale involved with assessed property values. Continuing with the above example, I think most would agree that it is easier to refer to a 5 mil tax, than an equivalent 0.005 percent tax.