Guides / Property Taxes / Michigan

Property Taxes in Michigan

Effective Rate

Michigan's average effective property tax rate is approximately 1.15%–1.30% of home value (commonly cited central estimates: ~1.19% per the Tax Foundation, ~1.18% per SmartAsset, ~1.15% per TaxByCounty, ~1.28% per PropertyTaxRates.org). This is notably higher than the national average, which sits around 0.89%–0.99% depending on source — meaning Michigan homeowners pay roughly 30–40% more than the U.S. average as a share of home value. There is significant county-level variation: rates range from about 0.66%–0.75% in low-tax counties (e.g., Leelanau, Grand Traverse) up to 1.76% in Ingham County, with Detroit specifically flagged in 2026 reporting (Michigan Advance, May 2026) as facing a property-tax-driven housing affordability crisis due to high effective rates relative to depressed home values.

Example: Statewide median annual property tax bill is approximately $2,100–$2,300 (estimates: $2,102, $2,145, $2,183, and $2,280 appear across recent sources depending on data year/methodology), typically on a median home value in the range of $132,200–$217,600 depending on the source's valuation basis. For a concrete county example: Washtenaw County has the highest average bill in the state at roughly $3,913/year, while Luce County has the lowest at about $739/year — illustrating the wide local variation driven by school millages and local government levies layered on top of the state's 6-mill State Education Tax.

Exemptions

Principal Residence Exemption (PRE)
Amount: Exempts owner-occupied primary residences from up to 18 mills of local school operating tax
Michigan's core 'homestead' property tax exemption (MCL 211.7cc/211.7dd), created after Proposal A. Homeowner must file an affidavit with the local township/city assessor by June 1 (summer levy) or November 1 (winter levy) to claim it; only one property per person may carry the PRE, even across state lines.
Homestead Property Tax Credit (refundable income tax credit)
Amount: Up to $1,800 for most filers (higher caps for seniors 65+, disabled persons, and veterans, with figures up to roughly $1,900 cited); available to households with total household resources of $71,500 or less, and taxable value of $165,400 or less
Confirmed via Michigan Dept. of Treasury's March 2026 press release. This is a refundable credit claimed on Form MI-1040CR (or MI-1040CR-2 for farmers) with the state income tax return — calculated as a percentage of property tax paid in excess of 3.2% of total household resources. It's separate from, and stackable with, the PRE.
Disabled Veterans Exemption
Amount: 100% exemption from all property taxes on the homestead
For Michigan resident veterans rated permanently and totally disabled (or individually unemployable/TDIU, or specially adapted housing recipients) by the VA; filed via Form 5107 with the local assessor. As of 2026, approved exemptions no longer require annual renewal — they stay in effect until rescinded or denied. Unremarried surviving spouses may retain the exemption.

Figures vary noticeably by source (e.g., effective rate cited anywhere from 1.15% to 1.32%, median bill from ~$2,100 to ~$2,795) because different aggregators use different base years of Census ACS data, different home-value denominators (median owner-occupied value vs. median assessed value), and some blend county millage data differently. Treat any single figure as directional; for a specific property, use Michigan Treasury's official Property Tax Estimator (treas-secure.state.mi.us/ptestimator) or the local county/township assessor for authoritative numbers. Also note Michigan's unique taxable-value cap under Proposal A: for 2026, the State Tax Commission set the inflation multiplier at 1.027 (2.7% cap on taxable value growth), down from the 5% caps seen in 2024–2025, which affects how fast bills can rise year-over-year for continuously-owned homes.

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
Down Payment Assistance in MichiganTransfer Tax & Closing Costs in MichiganBuyer-Agent Agreements in MichiganSeller Disclosure Laws in MichiganFind Agents in MichiganHome Affordability Calculator