Property taxes can feel like a moving target. Your assessment changes, your bill arrives, and your mortgage payment jumps because of escrow. If you own a home in Fitchburg or anywhere in Dane County, you want clear answers. In this guide, you’ll learn how assessments, mill rates, and escrow work together, what to expect from local timelines, and how to budget with confidence. Let’s dive in.
How Dane County property taxes work
Key terms you will see
- Assessed value: The value the municipal assessor assigns to your property, intended to reflect market value as of the assessment date. In Wisconsin, assessments are tied to a statutory date, commonly January 1 of the assessment year.
- Equalized value: A statewide adjustment the Wisconsin Department of Revenue uses to keep assessment levels uniform across municipalities. It helps with tax distribution and state aid calculations.
- Mill rate: The tax rate per $1,000 of assessed value. One mill equals $1 per $1,000. A combined mill rate is the total from all taxing jurisdictions.
- Tax levy: The total amount a jurisdiction needs to collect for the year. Mill rates are based on levies and the total taxable value.
- Exemptions and credits: Reductions to taxable value or tax liability if you qualify. Eligibility varies by program.
- Special assessments: One-time charges for local improvements like sidewalks or sewers. These can appear on your bill separate from general property taxes.
The simple formula
- Each taxing jurisdiction sets a levy.
- Mill rate = levy divided by total taxable value, then expressed per $1,000.
- Your property tax = assessed value times the combined mill rate divided by 1,000, adjusted for eligible exemptions or credits, plus any special assessments.
For example only: if your home’s assessed value is $400,000 and the combined mill rate is 18 mills, tax would be about $7,200 for the year. That is an effective rate of roughly 1.8 percent. Actual rates vary by year and jurisdiction.
Who sets values and rates locally
Assessments and collection in Fitchburg and Madison
- Municipal assessors set property values. The City of Fitchburg assesses properties within its limits. The City of Madison has its own assessing office for Madison properties.
- Municipal treasurers issue tax bills and collect payments. Dane County coordinates county components and handles delinquency processes.
Multiple jurisdictions on one bill
Your combined tax includes levies from your municipality, Dane County, your school district, a technical college, and sometimes special districts. Each sets its own levy annually. The sum of their mill rates creates the combined rate on your bill.
Assessment timing and appeals
What to expect each year
- Assessments are based on a statutory date, commonly January 1.
- Municipalities revalue on cycles that vary, often every 1 to 4 years. Timing depends on local policy and market conditions.
- You usually receive an assessment notice in spring. The notice explains your value and how to request an informal review or file a formal objection.
How to challenge your assessment
- Start with an informal review. Contact your municipal assessor, ask for the comparable sales used, and request an explanation of adjustments.
- If needed, file a formal objection to the Board of Review by the published deadline. Deadlines are strict. If not resolved locally, further appeals may be available through state review boards or courts.
Mill rates and your tax bill
How the parts add up
Each jurisdiction sets a levy based on its budget. The levy divided by taxable value generates a mill rate. Your bill reflects the combined rate multiplied by your assessed value, adjusted by any exemptions or credits, plus any listed special assessments.
School district levies often make up a large share of the total in the Madison area. Changes in those levies can influence your final bill even if your assessed value does not change.
Examples you can use
All numbers below are illustrative, not current rates.
Example A: Fitchburg starter home
- Assessed value: $350,000
- Combined mill rate: 18 mills
- Annual property tax: $350,000 × 0.018 = $6,300
If you escrow taxes with your lender, the monthly escrow for taxes would be about $525. Your lender will refine this estimate during annual escrow analysis.
Example B: Madison condo with a special assessment
- Assessed value: $275,000
- Combined mill rate: 18 mills
- Base annual tax: $275,000 × 0.018 = $4,950
- Special assessment on tax bill: $600 for a building improvement
Total due for the year would show the base tax plus the $600 special assessment. If you escrow, your monthly escrow may increase next cycle to cover the special assessment if it repeats, or you may handle a one-time payment depending on the schedule.
Example C: Reassessment increase
Scenario 1: Assessed value rises 10 percent, mill rate unchanged
- Prior assessed value: $400,000 at 18 mills → $7,200
- New assessed value: $440,000 at 18 mills → $7,920
Scenario 2: Assessed value rises 10 percent, mill rate decreases because levies and total taxable value changed
- New assessed value: $440,000
- New combined mill rate: 17 mills
- Annual tax: $440,000 × 0.017 = $7,480
Your taxes move with both the assessed value and the mill rate. A rising assessment does not always mean your tax bill will rise by the same percentage.
Escrow, mortgage, and monthly budget
How escrow accounts work
Most lenders collect 1/12 of your annual property taxes and homeowner’s insurance each month and hold those funds in an escrow account. When taxes are due, the lender pays the municipality from escrow. Lenders review escrow annually and adjust your monthly amount based on the latest bills.
Monthly payment breakdown
Illustrative example:
- Loan principal and interest: $1,500 per month
- Annual property tax: $7,200 → escrow taxes: $600 per month
- Homeowner’s insurance: $1,200 per year → $100 per month
- Estimated monthly PITI: $2,200
Your escrow estimate is based on recent tax data. A reassessment or levy change can increase the required escrow. If actual taxes exceed what was collected, you will have an escrow shortage and your lender may adjust your payment or request a one-time catch-up amount.
Shortages and surpluses
- Shortage: If the tax bill is higher than expected, your lender will notify you of the shortage and raise your monthly escrow or request a payment.
- Surplus: If there is extra in escrow after bills are paid, your lender typically issues a refund or credit, subject to regulatory thresholds.
Practical steps for buyers
- Request the seller’s last two years of tax bills and any recent assessment notice.
- Ask for documentation of any unpaid special assessments or installment schedules.
- Confirm if the current owner escrows taxes and request your lender’s escrow estimate.
- Make sure your loan estimate uses realistic taxes so your monthly payment is accurate.
Practical steps for current owners
- Review the assessor’s data and comparable sales if your assessment rises.
- Request an informal review with the assessor to discuss the valuation.
- If needed, file a formal objection with the Board of Review by the deadline on your notice.
- For complex cases, consider hiring a licensed appraiser or property tax consultant.
Local considerations in Fitchburg and Madison
- Tax composition: Your bill includes city or village, county, school district, technical college, and sometimes special districts. School district levies can be a significant portion.
- Development and TIF: Properties in areas with active development or Tax Increment Financing can see different levy dynamics. TIF does not change how you pay, but it can affect how tax revenue is allocated.
- Reassessment cadence: Fitchburg and Madison may revalue on different timelines. Appeal windows and procedures also vary. Always follow the instructions and deadlines on your official notice.
Avoid tax surprises
Use your latest assessment notice and last year’s bill for budgeting, and build in a cushion for levy changes. If you are buying, ask early for tax history and any special assessments. If you are already an owner, act quickly if you plan to appeal. A few proactive steps can save you stress and help you plan your cash flow.
If you want help estimating monthly costs for a specific home in Fitchburg or across the Madison area, reach out to Collective Real Estate Group. We will walk you through local tax patterns, recent assessments, and smart budgeting as part of a clear, consultative plan. Request your free home valuation and meet a team that pairs local expertise with a client-first process.
FAQs
How are Dane County property taxes calculated?
- Your assessed value is multiplied by the combined mill rate for all taxing jurisdictions, then adjusted by any exemptions or credits, plus any special assessments listed on your bill.
Who assesses my home in Fitchburg or Madison?
- Municipal assessors set values. The City of Fitchburg assesses Fitchburg properties and the City of Madison assesses Madison properties. Dane County manages county-level components and delinquency processes.
When do I get my assessment notice and how do I appeal?
- You typically receive a spring assessment notice based on the January 1 assessment date. Start with an informal review, then file a formal objection with the Board of Review by the municipality’s deadline if needed.
What is a mill rate and why does it change?
- A mill rate is the tax rate per $1,000 of assessed value. It changes when taxing jurisdictions adjust levies or when the total taxable value in the area shifts.
Will my taxes go up if my assessed value increases?
- Possibly, but not always by the same percentage. Your final bill depends on both your assessed value and the combined mill rate set by all jurisdictions.
How do special assessments affect my bill?
- Special assessments appear as separate line items for specific improvements, such as sidewalks or sewers. They are added to your general property tax for the total amount due.
How do property taxes affect my mortgage payment?
- If you escrow, your lender collects 1/12 of the annual tax each month. After the annual escrow analysis, your monthly escrow can change if taxes rise or fall, resulting in shortages or surpluses.
What happens if I do not pay my property taxes in Dane County?
- Delinquent taxes accrue penalties and interest and can lead to enforcement actions, including tax liens or foreclosure under county processes. Contact the Dane County Treasurer for current timelines and procedures.
