The total tax rate is the sum of the tax rates of all the units in which the property resides. The tax district is an area within the jurisdiction of a particular county, township, school corporation and other units. The total tax rate is also known as the gross tax rate. A property will be in the state, of course, and in a county, township and school corporation. All total tax rates are the sum of the state, county, township and school corporation rates.
Most property is also in a city or town, a library district, and one or more special districts.
The total tax rate will also include these rates. The homestead credit is a percentage to be subtracted from a homeowner's tax bill after the gross amount owed is calculated. The tax owed on a property is the product of its assessed value and the total tax rate. This would cost local governments revenue, except that the state pays local governments for lost credit revenue out of the state budget. This would cause homeowner tax bills to rise.