A tax rate is the percentage used to determine how much a property taxpayer will pay. A levy represents the total amount of funds a local unit of government may collect on a tax rate. In other words, the levy is a cap on the amount of property tax dollars a local government is allowed by law.

Is a tax levy bad?

A tax levy (and its cousin, tax lien) is serious business if you owe back taxes.

What is the difference between tax and tax levy?

Specifically, the major distinction between income taxes and levies is that the former is based strictly on taxable profit while the latter is payable without regard to taxable profit.