Taxes & Closing Costs

    Millage Rate

    The property tax rate expressed in mills, where one mill equals 1 dollar of tax per 1,000 dollars of taxable value.

    A millage rate states property tax in mills. One mill is one dollar of tax for every 1,000 dollars of taxable value. To find annual tax, multiply the taxable value by the millage rate and divide by 1,000.

    Taxable value is the assessed value minus any exemptions, such as the homestead exemption. Apply exemptions before multiplying by the millage rate.

    On the exam

    The formula is taxable value times millage divided by 1,000. The exam tests the order: subtract exemptions first, then apply the rate.

    Worked example

    Taxable value 260,000 times a 20-mill rate divided by 1,000 equals 5,200 dollars.

    Exam trap

    Do not multiply assessed value by the millage before subtracting exemptions. Taxable value comes first.

    Tested in

    Taxes Affecting Real Estate (3% of the exam)

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    This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.