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

A mill levy and a tax rate are two different ways of calculating property tax in Pennsylvania. A mill levy is a number expressed in mills (1/1000 of 1 cent) that is multiplied by the total assessed value of a property to determine the amount of property tax due. This amount is then collected by the local government. On the other hand, a tax rate is a measure expressed as a percentage that usually applies only to residential, non- agricultural properties. This percentage rate is then multiplied by the assessed value of a property to determine the tax due. This amount is transferred to the county or municipality where the property is located to pay for public services. The difference between a mill levy and a tax rate is that the mill levy is a unit expressed as a fraction of a cent and the tax rate is expressed as a percentage. Both are used to calculate property tax, but the mill levy assessment is generally higher than the percentage assessment.

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

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