What is the difference between a mill levy and a tax rate?

A mill levy and a tax rate are two separate terms applied to the same type of tax, which is a property tax. A mill levy is a form of taxation based on the assessed value of a property that is divided into a certain number of mills. It is typically expressed as a dollar amount per $1,000 of assessed value. For example, a mill levy of 6.2 represents $6.20 per $1,000 of assessed value. A tax rate, on the other hand, is the same as a mill levy but is expressed as a percentage. In New Hampshire, the tax rate is expressed in terms of the total amount of taxes due related to the assessed value of the property divided by the total value of the property. For example, a 1.2% tax rate on a property with an assessed value of $1,000 would result in taxes of $12. To summarize, the difference between a mill levy and a tax rate is the manner in which the tax is expressed. A mill levy is a dollar amount per $1,000 of assessed value while a tax rate is a percentage of the total value of the property. In New Hampshire, property taxes are calculated by multiplying the mill levy or tax rate by the assessed value of the property.

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What is the difference between a mill levy and a tax rate?

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