The residential tax rate is the rate applied to the assessed value of residential properties to calculate property taxes owed. Municipalities set tax rates for each property class, with residential typically the lowest. The rate is expressed as a percentage, mill rate (dollars per $1,000 of assessed value), or tax ratio relative to other classes. Residential rates vary significantly between municipalities based on local service levels, assessment bases, and policy choices. When multiplied by a property's assessed value, the residential rate determines the municipal portion of property taxes. Education tax rates are added separately. Rate increases reflect budget decisions and assessment base changes.