The tax rate, or millage, is set annually. A tax rate of one mill represents a tax liability of one dollar per $1,000 of assessed value.

Example:
The assessed value--40 percent of the fair market value--of a house that is worth $100,000 is $40,000. In a county where the millage rate is 25 mills the property tax on that house would be $1,000; $25 for every $1,000 of assessed value or $25 multiplied by 40 is $1,000.