Real Estate Math
A Pennsylvania home is assessed at $180,000 with a total mill rate of 25 mills. What is the annual property tax?
A$450
B$4,500✓ Correct
C$25,000
D$1,800
Explanation
Property tax = Assessed Value multiplied by Mill Rate divided by 1,000. $180,000 times 25 divided by 1,000 = $4,500 annual property tax. In Pennsylvania, mill rates (millage) are expressed as dollars per $1,000 of assessed value. A rate of 25 mills means $25 per $1,000 of assessed value. Total millage typically combines county, municipal, and school district levies.
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