How Much Is a Mill Coin Worth in U.S. Currency?

The term “mill” in U.S. currency often raises questions, as it is not a physical coin encountered in daily transactions. The mill is a legitimate unit of money used in various financial calculations. This fractional denomination helps facilitate precise financial measurements, particularly where exact figures are necessary. Understanding its definition and applications is key to grasping its relevance.

Understanding the Mill as a Unit of Currency

A mill is a monetary unit equivalent to one-thousandth of a United States dollar. This means one mill represents one-tenth of a single cent, a denomination smaller than any circulating coin. The term originates from the Latin word “millesimum,” meaning “thousandth part”. The Continental Congress formally introduced the mill in 1786 as the “lowest money of account”. The Coinage Act of 1792 further codified this, stating that the money of account should include “milles or thousandths” of a dollar.

The Non-Existence of a Physical Mill Coin

Despite its historical definition as a unit of account, no physical “mill” coin circulates in the United States. The U.S. Mint has never produced one for general circulation. Early U.S. history saw half-cent coins minted from 1793 to 1857, equivalent to five mills.

Some states and local governments issued physical “mill tokens” made from inexpensive materials like tin, aluminum, plastic, or paper for specific purposes, such as sales tax payments. These tokens largely disappeared after the 1960s due to inflation eroding their value and making their production impractical. Manufacturing such a low-value coin would exceed its face value, making its production impractical.

Contemporary Uses of the Mill

Although not a physical coin, the mill remains a unit of account in several financial applications. Its most prominent use is in property taxation, where tax rates are expressed in “mills” or “millage rates”. A millage rate represents the tax levied per $1,000 of a property’s assessed value. Various entities, including local governments and school boards, set their own millage rates, which collectively determine a property owner’s total tax obligation.

The mill is also encountered in gasoline pricing, displayed down to tenths of a cent. For example, $3.019 per gallon indicates three dollars, one cent, and nine mills. Utility rates, such as electricity, are also quoted in mills per kilowatt-hour. These applications illustrate the mill’s utility in situations requiring granular financial precision.

Valuing the Mill in Real-World Scenarios

Understanding the mill’s value becomes clearer in real-world calculations. One mill equals $0.001. This conversion is used for calculating financial obligations expressed in mills. For instance, to determine property tax, a property’s assessed value is multiplied by the millage rate, then divided by 1,000.

If a property has an assessed value of $200,000 and the total millage rate is 15 mills, the calculation is $200,000 multiplied by 15, then divided by 1,000, resulting in a $3,000 tax. Alternatively, the millage rate can be converted to a decimal (15 mills = 0.015) and directly multiplied by the assessed value ($200,000 0.015 = $3,000). This method clarifies the financial impact of millage rates on property taxes.