How Milage Rate Affects Property Taxes
October 26, 2025
Some politicians and Town Managers like to position milage rate as if it means something, or as if they had something to do with it. But the reality is, it’s just a calculated number, not some kind of proactive tool.
The property tax you pay is based on multiplying two variables, milage rate AND your assessed home value assigned by the County.
Property Tax = (Milage Rate) x (Assessed Home Value)
As an example, If the county raised your home’s assessed value and your milage rate stayed the same, your property taxes would still go up.
For 2026, the Melbourne Beach milage rate will increase 2.7% to 4.6 and the Town’s total home assessed value has increased 5.7%. The two combine for an average property tax increase around 8.6%.
So how is milage rate determined?
First, the Town Manager finalizes the Town’s operating budget and determines the amount of revenue needed to operate for the year.
After deducting other revenue sources such as licenses, permits, fines and other taxes, the remainder becomes the amount required to be funded from property taxes.
For example, in 2026 Melbourne Beach needs $3,072,937.69 to be funded from property taxes. They factor in a 3% default on payment into the equation so that number gets increased by 3%, which is now $3,167,977
Then, the Town takes the total of the County’s assessed property value (every property). For example, in 2026 Melbourne Beach is $688,690,725.
To get the $3,167,977, the Town will assess a milage rate of 4.6 to be applied to the $688,690,725.