Sheet MI · 2026 rules
Michigan Property Tax Calculator
Section 211.27 a generally determines taxable value using the lesser of state equalized valuation and the previous taxable value, adjusted for losses, the lesser of 5% or the inflation factor, and additions. A qualifying transfer of ownership can cause taxable value to reset to state equalized valuation in the following year.
Buying or selling? Michigan transfer tax calculator
Rules verified 15 primary sources Editorial policy
Estimate your 2026 Michigan bill
- Tax — Local ad valorem levies —
- Credits subtracted —
- Fixed charges added —
How Michigan turns value into a tax bill
| Step | Michigan rule | Source |
|---|---|---|
| Value | Use the valuation for the assessment year shown on your notice. Exemptions, rate units and levy classifications below must match that same notice. | [1] |
| Assessment | 50% of true cash value | [1] |
| Annual limit | 2026 unchanged-property taxable value: lesser of SEV or prior taxable value×1.027Only unchanged continuing-owner property without losses/additions. Transfers subject to uncapping use SEV in the following year. Excluded transfers require assessor confirmation. | [2] |
| Exemptions | Other relief is applied only from a recorded approval; the calculator does not decide qualification. | |
| Rate | Local ad valorem levies: local rate — you enter it.Local ad valorem levies from the applicable taxing authority. The rate is not a Census ratio. |
How Michigan caps, exempts, appeals and credits residential tax
Michigan values property as of tax day, December 31 of the year before the tax year.4 Property is assessed at 50% of true cash value; once equalized, this is the state equalized value (SEV). Taxable value is the lesser of SEV and last year's taxable value minus losses, times the lesser of 1.05 or the inflation rate, plus additions.1 For 2026 the State Tax Commission's inflation rate multiplier is 1.027.2 The Commission publishes each year's multiplier before March 1.5
After a transfer of ownership, taxable value uncaps and equals SEV for the year after the transfer.1 The buyer must report the transfer to the local assessor within 45 days.1 Late reporting brings back-taxes from the transfer date plus interest and penalty.3
The Principal Residence Exemption removes up to 18 mills of local school operating millage from an owner-occupied home.615 File the affidavit with the local unit by June 1 to apply from that summer levy, or by November 1 to apply from that winter levy.7
To protest a valuation, go to the local March Board of Review, which first meets on the second Monday in March. It must send its decision in writing by the first Monday in June.8 For residential property, the next step is a petition to the Michigan Tax Tribunal by July 31 of the tax year.9
The Homestead Property Tax Credit is claimed with the Michigan income tax return, not on the tax bill. For tax year 2025 the maximum credit is $1,900. Total household resources must be no more than $71,500, with the credit phasing out above $62,500, and a homeowner's taxable value must be no more than $165,400.10
If the local unit authorizes it, taxes paid before February 15 carry an administration fee of up to 1%, and later payments a 3% late penalty.11 Taxes still unpaid on March 1 are returned to the county treasurer as delinquent, with a 4% county fee and interest at 1% a month.12
A disabled veteran's homestead is fully exempt if the veteran is rated permanently and totally disabled at the 100% rate, received a specially adapted housing grant, or is rated individually unemployable. A surviving spouse who has not remarried also qualifies.13 Poverty exemptions follow income and asset guidelines that each local assessing unit sets and publishes.14
Worked example
Approved unchanged property:SEV=$360,000×50%=$180,000; capped TV=$120,000×1.027=$123,240; taxable lesser=$123,240. Illustrative 40 mills=$4,929.60.
| Line | Taxable value | Tax |
|---|---|---|
| Local ad valorem levies at 40 mills | $123,240.00 | $4,929.60 |
| Annual total | $4,929.60 |
Left to your local bill
- Uncapping: in the year after a transfer of ownership, taxable value resets to SEV (state equalized value). A buyer who misses the 45-day transfer report owes back-taxes plus interest and penalty. Use your assessor's post-transfer taxable value instead of the capped formula.
- Losses and additions in the capped-value formula, such as new construction or demolition. The unchanged-property branch here does not handle them; your assessor's notice shows the result.
- Homestead Property Tax Credit claimed with the Michigan income tax return (up to $1,900 for tax year 2025, household resources up to $71,500). It is refunded through your income tax return, not deducted from your bill.
- Disabled veteran exemption and poverty exemption. Both are granted by the local assessor or Board of Review, and poverty income and asset limits are set by each local assessing unit.
- Summer and winter bill split, local due dates, the optional 1% administration fee and 3% late penalty: set by your city or township treasurer. After March 1, unpaid taxes pass to the county treasurer with a 4% fee and 1% monthly interest.
- Millage rates for your school district and local units, and whether your Principal Residence Exemption is on file. These come from your local treasurer or assessor and can be compared in Treasury's millage rate database.
Census context, not a rate
American Community Survey 2020–2024: median owner-occupied value $231,600 (±$642), median real-estate taxes $2,904 (±$9). Dividing one by the other gives 1.25% for Michigan. Tables B25077 and B25103; why it is only context.
Sources
- legislature.mi.govMichigan Compiled Laws §211.27a, read .
“property shall be assessed at 50% of its true cash value … The property's taxable value in the immediately preceding year minus any losses, multiplied by the lesser of 1.05 or the inflation rate, plus all additions. … The property's current state equalized valuation. … Upon a transfer of ownership of property after 1994, the property's taxable value for the calendar year following the year of the transfer is the property's state equalized valuation for the calendar year following the transfer.”
- michigan.govMichigan State Tax Commission Bulletin 14 of 2025, Inflation Rate Multiplier for 2026, read .
“The inflation rate, expressed as a multiplier, to be used in the 2026 Capped Value Formula is 1.027. 2026 CAPPED VALUE = (2025 Taxable Value – LOSSES) X 1.027 + ADDITIONS”
- legislature.mi.govMichigan Compiled Laws §211.27b, read .
“Any additional taxes that would have been levied if the transfer of ownership had been recorded as required under this act from the date of transfer. … Interest and penalty from the date the tax would have been originally levied.”
- legislature.mi.govMichigan Compiled Laws §211.2(2), read .
“The taxable status of persons and real and personal property for a tax year shall be determined as of each December 31 of the immediately preceding year, which is considered the tax day”
- michigan.govMichigan State Tax Commission Bulletin 11 of 2025, Property Tax and Equalization Calendar for 2026, read .
“The STC shall publish the inflation rate multiplier before March 1.”
- michigan.govMichigan Department of Treasury, Principal Residence Exemption, read .
“A principal residence exemption exempts an owner’s principal residence from the local school operating millage, up to 18 mills. This exemption is distinct from the Michigan Homestead Property Tax Credit, which applies to income tax returns.”
- legislature.mi.govMichigan Compiled Laws §211.7cc(2), read .
“on or before June 1 for the immediately succeeding summer tax levy and all subsequent tax levies or on or before November 1 for the immediately succeeding winter tax levy and all subsequent tax levies”
- legislature.mi.govMichigan Compiled Laws §211.30, read .
“the board of review shall meet on the second Monday in March. … must be notified in writing, not later than the first Monday in June, of the board of review's action”
- legislature.mi.govMichigan Compiled Laws §205.735a, read .
“as agricultural real property, residential real property, timber-cutover real property, or agricultural personal property is invoked by a party in interest, as petitioner, filing a written petition on or before July 31 of the tax year involved.”
- michigan.govMichigan Department of Treasury, 2025 Homestead Property Tax Credit Information, read .
“Maximum Taxable Value $165,400 Total Household Resources (THR) Limit $71,500 Phase-out begins when Total Household Resources exceeds $62,500 Credit Limit $1,900”
- legislature.mi.govMichigan Compiled Laws §211.44(3), read .
“on a sum voluntarily paid before February 15 of the succeeding year, the local property tax collecting unit shall add a property tax administration fee of not more than 1% of the total tax bill per parcel. … a late penalty charge equal to 3% of the tax.”
- legislature.mi.govMichigan Compiled Laws §211.78a, read .
“On March 1 in each year, taxes levied in the immediately preceding year that remain unpaid shall be returned as delinquent for collection. … A county property tax administration fee of 4% and, except as provided in section 78g(3)(c), interest computed at a noncompounded rate of 1% per month”
- legislature.mi.govMichigan Compiled Laws §211.7b, read .
“Has been determined by the United States Department of Veterans Affairs to be permanently and totally disabled as a result of military service and entitled to veterans' benefits at the 100% rate.”
- legislature.mi.govMichigan Compiled Laws §211.7u, read .
“The governing body of the local assessing unit shall determine and make available to the public the policy and guidelines used for the granting of exemptions under this section.”
- legislature.mi.govMichigan Compiled Laws §380.1211, read .
“the board of a school district shall levy not more than 18 mills for school operating purposes or the number of mills levied in 1993 for school operating purposes, whichever is less.”
Bordering jurisdictions
Rules verified by the Property Tax Calculator Editorial Team. Report a correction