Michigan property tax estimator
What a new owner's property taxes will be, using 2025 millage for every city, township and school district in Southeast Michigan, and why the number differs from the seller's bill.
How Michigan property taxes work after a sale
Every home has two values on the tax roll. The state equalized value (SEV) is about half of what the assessor thinks the home is worth. The taxable value is what the bill is figured from. While one owner keeps a home, the taxable value can only rise by inflation or 5%, whichever is less, even if the market jumps. That's Proposal A, from 1994.
When a home sells, that limit comes off. The year after the sale, the taxable value is reset to that year's SEV, and the new owner's bill is calculated from there. For someone buying from a long time owner, the difference can be thousands of dollars a year. It's the most common surprise we see after a closing, and the reason a listing's current tax bill isn't a good number to budget with.
How this estimate is figured
| Step | What we use |
|---|---|
| Millage rate | The 2025 total rate for the exact city, township or village and school district, from the Michigan Department of Treasury's Total Property Tax Rates report. Homestead rate if you'll live there, non homestead if not. Includes township wide special assessments levied by millage. |
| Taxable value, low | The current SEV. Assessments lag the market, so next year's SEV can be close to it. |
| Taxable value, high | Half the purchase price, in case next year's SEV catches up to the sale. |
| Yearly taxes | Taxable value × mills ÷ 1,000, plus the 1% administration fee most cities and townships charge. |
What it leaves out: special assessments billed by the parcel (sidewalks, lake improvement districts, some trash fees), and 2026 rate changes, which the state publishes the following spring. Your city or township treasurer has the official numbers. Source: Michigan Treasury millage rates.
Questions
Why will my property taxes be higher than the seller's?
Michigan limits how fast a home's taxable value can rise while one owner holds it: by inflation or 5%, whichever is less. Market values often rise faster, so a long time owner's taxable value can fall far below the home's assessed value. When the home sells, that limit ends. The year after the sale, taxable value is reset to the state equalized value (SEV), and the new owner's taxes are figured from there. This is called uncapping.
Is my new taxable value the purchase price?
No. Taxable value resets to the SEV, which is the assessor's figure for about half of market value, not the price you paid. Because assessments lag the market, the SEV the year after a purchase can be close to this year's SEV, or it can move up toward half the sale price. This estimator shows both ends.
What is the principal residence exemption?
If the home is your primary residence, you're exempt from up to 18 mills of school operating tax. You claim it by filing a Principal Residence Exemption affidavit with the city or township, by June 1 for that year's summer bill or November 1 for the winter bill. Rentals and second homes pay the higher non homestead rate.
What's the 1% administration fee?
Most Michigan cities and townships add a property tax administration fee of up to 1% of the taxes. The state's millage report leaves it out, so this estimator adds it.
Do I need to file anything after buying?
Yes. File a Property Transfer Affidavit with the city or township within 45 days of closing (there's a daily penalty after that), and the Principal Residence Exemption affidavit if you'll live there. Your title company usually helps with both.