Free property tax calculator tailored for Michigan (MI). Calculate instantly with state-specific rates and rules.
Michigan has an effective property tax rate of 1.54%, producing an average annual bill of $2,551. The US national average is 1.07% — Michigan's rate is above, placing it at rank #41 out of 50 states (rank 1 = lowest).
Michigan assesses property at 50% of market value (State Equalized Value, or SEV). However, Proposal A (1994) limits annual increases in taxable value to the lesser of 5% or the rate of inflation. When property sells, the taxable value uncaps to the SEV.
The Principal Residence Exemption (PRE) eliminates the 18 mills of local school operating taxes for primary residences, providing savings of $1,500-$2,500/year for most homeowners. Veterans, seniors, and low-income residents may qualify for additional relief.
Proposal A's taxable value cap is Michigan's most important taxpayer protection. Long-term homeowners in appreciating markets like Ann Arbor, Grand Rapids, or northern Michigan lakefront communities accumulate major savings versus market rate.
Michigan has an unusual "assessment uncapping" rule: when a property is sold, its taxable value immediately jumps to the SEV (50% of market value), which can double a new buyer's tax bill compared to what the previous owner was paying.
The median home value in Michigan is $225,000. Michigan home prices have risen 25-35% since 2020, with strong gains in Grand Rapids, Ann Arbor, and western Michigan lakeshore markets. Detroit metro remains a value opportunity nationally. At the 1.54% effective rate, a homeowner at the median value pays roughly $2,551/year in property taxes.
Data: Tax Foundation (2024), US Census Bureau ACS 2023, Zillow, ATTOM Data Solutions. Updated 2024–2025. Figures reflect state averages — consult a licensed professional for personalized advice.
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