Real estate taxes are based on two things: the assessed value of the property, which is set by the County, and the millage rate. Each of the three taxing authorities — County, Township, and School — have their own millage rates.
The assessment is a percentage of the market value of your property. The assessment is the foundation, which the taxing authorities use to determine the amount of real estate taxes owed using their tax rates. Today the assessed value is roughly one-half of the current market value.
The millage rate is the amount per $1,000 used to calculate taxes on property.
For example, a property might have an assessed value of 300,000. The millage rate in our example is 3.8. To determine the tax, divide the assessed value by 1,000, which equals 300 in our example. Now, multiply that number by the millage rate:
300 X 3.8 = $ 1,140.00
The assessment can change depending on certain factors, such as adding a pool, a deck, or a finished basement. It can go down if the property owner feels that the assessment is too high. That is part of the Board of Assessment Appeals process.
Millage rates can change every year.
North Penn School District (Montgomery County residents only): 24.1890
Towamencin Township: 3.808
Montgomery County: 3.849**
*Figures are for the North Penn School District fiscal year from 7/1/2016 to 6/30/2017, and the County & Township calendar year from 1/1/2017 to 12/31/17. You can view a PDF of the North Penn School District millage rate history by clicking here.
**The county millage includes a special millage rate of 0.390 specifically for financing The Montgomery County Community College (MCCC). This millage rate is only on the Montgomery County portion of the 2017 real estate tax bill. View the county letter regarding this below.
Did You Know?
The term "millage" is derived from the Latin root word millesimus, which means "thousandth."