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

A mill levy and a tax rate are two ways used to measure property taxes in Washington. The main difference between them is how they are calculated. A mill levy is a tax rate expressed in mills. One mill is equal to one tenth of a cent or $0.001 per dollar of assessed value. The assessed value of a property is typically less than the real value of the home and is determined by an assessor. When you multiply the total assessed value of all the property in a district by the mill levy, you get the total amount of money that will be collected in the form of property taxes. A tax rate is another way of measuring property taxes. It is calculated by taking the total amount of tax collections from a specific area and dividing that amount by the total assessed property value in the area. This gives you the rate of taxes that will be charged. In summary, a mill levy is a tax rate expressed in mills and is determined by multiplying the assessed value of all the property in a district by the mill levy. A tax rate is determined by taking the total amount of tax collections from a certain area and dividing it by the total assessed property value in the area.

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

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