A property tax rate is always a price per slice of property value. States just pick different slice sizes, which is why a Connecticut rate can look ten times larger than a New Jersey rate for the same tax.
The four common units
| Unit | Means | Same rate |
|---|---|---|
| Mills | $1 per $1,000 of value | 25 mills |
| Per $1,000 | Dollars per $1,000 of value | $25.00 |
| Per $100 | Dollars per $100 of value | $2.50 |
| Percent | Dollars per $100 of value | 2.5% |
The word mill comes from the Latin for a thousandth. Mills and dollars per $1,000 are the same number. Divide by 10 to get dollars per $100, which is the same number as a percent.
Turning a rate into a bill
Multiply the value by the rate, then divide by the slice size:
- Mills: value × mills ÷ 1,000
- Per $100 or percent: value × rate ÷ 100
On a $300,000 assessed value, 25 mills is $300,000 × 25 ÷ 1,000 = $7,500 a year.
Which value the rate applies to
Most rates apply to assessed value, the figure your assessor sets. In some states that is meant to equal market value. In others it is a set fraction of market value, or it drifts away from market value between revaluations. Always use the value from your own assessment notice or tax bill.
Skip the arithmetic with the rate converter, or estimate a bill from your town's page.