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

A property tax levy is the amount of money that local governments collect in property taxes in order to fund public services. The property tax levy can be voted on by residents of the district and is typically collected annually. Meanwhile, a property tax rate is the amount of tax levied for each unit of a property’s assessed value. The tax rate is set by the local taxing authority, and it is used to determine how much in taxes a property owner will owe. Therefore, the property tax levy is the amount of money that local governments plan to collect from property owners. The tax rate, on the other hand, is the percentage of the assessed value of a property that is subject to taxation. Property tax rates in Washington vary from county to county, though counties are limited in how high they can set their rates. In short, the difference between a property tax levy and tax rate is that the levy is the amount of money that local governments plan to collect while the tax rate is the percentage of the assessed value of a property that is subject to taxation. The levy is used to fund public services while a tax rate is set by the local authority to determine how much a property owner will owe in taxes.

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

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