Property tax
Mill rate
A tax rate expressed in thousandths: one mill is $1 per $1,000 of assessed value
A rate of 25 mills is 0.025 as a decimal, or $25 per $1,000 of assessed value. Converting the mill figure to a decimal before multiplying is the reliable habit.
How the exam asks about it
A full item runs market value → assessment ratio → assessed value → mill rate → annual tax, and skipping the ratio step is the mistake the question is built to catch.
Related terms
Sitting the license exam? Find out what you actually know.
Free practice questions built to the published national content outline, with an explanation after every answer. No account, no paywall.
Independent exam preparation. Real Estate Exam Bank is not a state-approved pre-licensing course and completing anything here does not satisfy any state education requirement. Not affiliated with, endorsed by, or authorized by any state real estate commission, Pearson VUE, or PSI. Practice questions here are original study material, not the official exam.