Mill rate is a term often used in taxation to refer to the amount of tax imposed on a property or a certain area. Another term used synonymously with mill rate is "property tax rate." This tax rate is calculated by dividing a property's assessed value by 1,000 and then multiplying that with the mill rate. Other related terms are "tax levy" and "property assessment." While property tax rates may differ from state to state and country to country, they are a vital source of revenue for local governments and fund essential infrastructure and public services, such as education, healthcare, and social welfare programs.