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

A property tax levy and a tax rate are two elements of a property tax system that work together to fund services in New Hampshire. The difference between them is quite simple. A property tax levy is the total dollar value of all property taxes that must be collected from property owners within a given jurisdiction. This is the total amount of revenue that the government requires from its taxpayers; it is set by the municipality prior to the start of each fiscal year. On the other hand, a tax rate is the rate at which property taxes are applied. It is expressed as a percentage of the assessed value of a property. By multiplying the assessed value of a property by the appropriate tax rate, the amount of taxes owed on that property can be calculated. In summary, the property tax levy is the total amount of revenue that the government needs to collect and the tax rate is the rate at which taxes are applied. Together, they determine the amount of taxes due from each property owner in New Hampshire.

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

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