A millage rate, also known as a mill rate, is a tax rate used to calculate the assessed value of a property. It represents the amount of tax payable per dollar of the assessed value of a property. The term "millage" is derived from the Latin word millesimum, meaning thousandth, with 1 mill being equal to 1/1000th of a currency unit. The mill rate is based on "mills," which is a figure that represents the amount per $1,000 of the assessed value of the property. Government entities set mill rates based on the total value of property within their jurisdiction to provide the necessary tax revenue to cover projected expenses such as roads, schools, and emergency services in their annual budgets. Property taxes are calculated by multiplying the assessed, taxable property value by the mill rate and then dividing that sum by 1,000.

The millage rate can impact a homeowners property tax bill, which is one of the most significant expenses for homeowners. When municipalities use a higher mill rate, property taxes are consequently higher, which can ultimately impact monthly mortgage costs. Several tax authorities can levy a mill rate on a property, meaning a tax bill might have several line items that could include mills for a city, county, school district, or other entities.

In summary, a millage rate is a tax rate used to calculate the assessed value of a property, and it represents the amount of tax payable per dollar of the assessed value of a property. It is used by government entities to provide the necessary tax revenue to cover projected expenses in their annual budgets. The millage rate can impact a homeowners property tax bill, and several tax authorities can levy a mill rate on a property.