Property Tax in Michigan (2026): Rates, Exemptions, and Real Numbers

Michigan Property Tax Rates by County

Highest and lowest effective rates within Michigan

Property Tax Calculator — Michigan

Pre-loaded with Michigan's 1.31% effective rate and $237,491 median price

Property Tax by City in Michigan

Annual and monthly property tax by city, based on local median prices and the statewide effective rate

Michigan Homestead Exemption

How Michigan Assesses Property Values

Assessment cycle: Annual assessment. Taxable value can increase no more than 5% or CPI per year under Proposal A. Taxable value uncaps on sale.

Property Tax's Impact on Your True Monthly Cost

On a $237,491 home in Michigan

Property tax represents 12% of the true monthly cost in Michigan.

Mortgage Calculator Including Property Tax — Michigan

See your full PITI (principal, interest, taxes, insurance) payment

How Michigan's Property Tax Affects Affordability

$259/month in property tax reduces the home price you can afford. Use the affordability calculator to see the real impact.

Property Tax After Refinancing in Michigan

Refinancing changes your P&I but not your property tax. If your home was reassessed at a higher value, your tax bill increases regardless of your rate.

Frequently Asked Questions

What is the property tax rate in Michigan?

Michigan's effective property tax rate is 1.31%, ranking #14 nationally. The median annual property tax bill is $3,113 ($259/month). Rates range from 0.78% in Leelanau County to 1.62% in Ingham County (Lansing). Source: Tax Foundation Property Taxes by State 2024.

Does Michigan have a homestead exemption?

Yes — Michigan offers a homestead exemption for primary residences. Principal Residence Exemption (PRE): owner-occupied primary residences are exempt from the 18-mill school operating levy, reducing the effective rate by roughly 1.5–2 percentage points. Proposal A (1994) caps annual taxable value increases at the lesser of 5% or CPI inflation rate. On sale, taxable value resets to state equalized value (50% of market value).. Apply through your county assessor's office after purchasing your home.

How often is property reassessed in Michigan?

Michigan reassesses property on a annual assessment. taxable value can increase no more than 5% or cpi per year under proposal a. taxable value uncaps on sale. basis. When your property is reassessed, your tax bill changes based on the new assessed value multiplied by the applicable rate. If you believe your assessment is too high, you can appeal — most counties allow 30-90 days after receiving your assessment notice.

How is property tax calculated in Michigan?

Property tax = Assessed Value × Mill Rate (or effective rate). In Michigan, the effective rate is 1.31% of market value. On a $237,491 home: $237,491 × 1.31% = $3,113/year. Assessments may use a fraction of market value — the effective rate accounts for this.

Can I appeal my property tax assessment in Michigan?

Yes. If your assessed value is higher than comparable sales in your area, you can file an appeal with your county assessment board. Steps: (1) Get your assessment notice, (2) Research comparable recent sales, (3) File an appeal by the deadline (typically 30-90 days from assessment notice). Studies show 20-40% of appeals result in a reduction. The process is free and you represent yourself — no attorney required.

Are property taxes included in my mortgage payment in Michigan?

Most lenders require an escrow account that collects $259/month ($3,113/year ÷ 12) along with your mortgage payment, then pays the county on your behalf. If your loan-to-value is below 80%, you may be able to opt out of escrow and pay taxes directly. Note: if your assessed value rises, your escrow payment adjusts and your total monthly cost increases.

What Michigan counties have the highest and lowest property taxes?

Michigan's highest effective rate is in Ingham County (Lansing) at 1.62%. The lowest is Leelanau County at 0.78%. That's a 0.84% spread — on a $237,491 home, the difference is $1,995/year.