The average Michigan property tax rate is about 1.19% of a home’s value, which comes to roughly $2,904 a year on the typical Michigan home. That makes Michigan property tax one of the higher burdens in the country. This guide breaks down the Michigan property tax rate, what the typical bill looks like, how your bill is figured, where the money goes, and — most useful of all — how
to check whether you are overpaying and how to pay less.
Michigan Property Tax at a Glance
| Effective tax rate | 1.19% |
| Median annual bill | $2,904 |
| Median home value | $231,600 |
| Rank among states | #14 of 50 highest |
| vs. U.S. average | $1,367 below the U.S. average ($4,271) |
| Reassessed | Assessors review and update assessments every year, and you receive an assessment notice annually (typically mailed in late winter, before the March board of review). |
Rate & bill: U.S. Census Bureau ACS 2024 5-year (effective rate B25090/B25082 – the Tax Foundation method; median bill B25103; value B25077).
| Michigan Property Tax | Figure |
|---|---|
| Effective property tax rate | 1.19% |
| Median annual property tax bill | $2,904 |
| Median home value | $231,600 |
| Rank (highest to lowest) | #14 of 50 states |
| U.S. average bill | $4,271 |
In This Michigan Guide:
What Is the Michigan Property Tax Rate?
The Michigan property tax rate is not one flat number — it is the combined result of your county, city, township, and school-district rates, applied to your home’s assessed value. Across Michigan, homeowners pay about 1.19% of their home’s value on average, or around $2,904 a year on a typical $231,600 home. That puts Michigan in the middle nationally — ranked #14 of 50 states from highest to lowest. Two
homes worth the same amount can still owe very different bills depending on the town and school district, so treat the statewide figure as a starting point, not your exact bill.
If your bill went up, start by reading your assessment notice closely — the assessed value, State Equalized Value, and taxable value each mean something different, and the taxable value is what your bill is built on. Many Michigan homeowners find they qualify for the Principal Residence Exemption or a senior, veteran, or disability program they hadn’t claimed, so it’s worth checking those first with your city or township assessor.
If the market value looks too high, you generally have the right to appeal — you can talk to your local assessor and, if needed, bring your case to the local March board of review and then the Michigan Tax Tribunal (confirm the exact dates on your notice).
Think your Michigan bill is too high? Check in two minutes.
How Michigan Property Tax Is Calculated
Your Michigan property tax starts with an assessed value set by Property is assessed at the local level by your city or township assessor (the assessing officer of your municipality), overseen by county equalization departments and the Michigan State Tax Commission. Michigan is unusual in that cities and townships — not counties — are the units that actually assess property.. Michigan assessors estimate your property’s market value (called “True Cash
Value”), then apply a ratio set by state law to arrive at your assessed value and State Equalized Value; a separate “taxable value” is what your bill is actually figured on.
Check the assessed value and taxable value printed on your annual assessment notice to see the numbers being used — do not rely on the exact ratio here (see your notice). That assessed value is then multiplied by the combined local tax rate to produce your bill. In Michigan, property is generally reassessed Assessors review and update assessments every year, and you receive an assessment notice annually (typically mailed in
late winter, before the March board of review)..
The single most important number to check is your assessed value: if it is higher than what your home would sell for, your bill is too high — and that is exactly what an appeal fixes.
The actual rates in Michigan are set by The actual tax rate — called the “millage” — is set by local units of government: your city or township, the county, your school district, and special-purpose districts (libraries, community colleges, transit, public safety). Many millages are approved directly by local voters at the ballot box.. That is why your neighbor one town over can pay a different bill on an identical
house.
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Where Your Michigan Property Tax Money Goes
Michigan property taxes mostly fund local public services — K-12 schools and community colleges, county services, police and fire, and roads and local infrastructure. The exact mix depends on which local millages apply where you live. For most Michigan homeowners, the school-district share is the biggest single piece of the bill, which is why property taxes tend to be highest where schools rely most on local funding.
One Michigan note: Under Proposal A (a 1994 constitutional amendment), the growth of your “taxable value” is capped each year to the rate of inflation (or a set limit, whichever is lower) for as long as you own the home — so your taxable value can rise more slowly than the market value. When a property is sold or transferred, the taxable value “uncaps” the following year and resets to
the State Equalized Value, which is why a newly purchased home’s bill can jump above the prior owner’s.
How Michigan Property Tax Compares
The U.S. average property tax bill is about $4,271 a year. The typical Michigan bill of $2,904 is $1,367 below that. Remember that a low rate does not always mean a low bill — a state with cheap rates but expensive homes can still cost you more than Michigan. The dollar bill and your own assessment matter more than the headline rate.
How to Lower Your Michigan Property Tax
You cannot change the Michigan property tax rate, but you have two real levers on your own bill. First, claim every exemption you qualify for. Michigan offers several property tax breaks — most notably the Principal Residence Exemption (the homestead exemption) for your main home, plus relief programs for seniors (including a homestead property tax credit tied to income), veterans (a full exemption for qualifying disabled veterans and certain surviving
spouses), and disabled homeowners.
These can meaningfully lower what you owe; check with your local assessor or the Michigan Department of Treasury to see whether you qualify and which forms to file (dollar amounts and income limits are not listed here — see the official data). Second, appeal your assessment if your home is valued higher than it would sell for — studies suggest a large share of homes are over-assessed, and appeals often
succeed.
Don’t want to appeal your Michigan taxes yourself? A property tax appeal service can file everything for you and usually only charges if it wins — typically a share of what it saves you. It is one option; you can also appeal on your own for free.
Frequently Asked Questions
What is the Michigan property tax rate?
The average effective Michigan property tax rate is about 1.19% of a home’s value, based on U.S. Census data. On the typical Michigan home that works out to roughly $2,904 a year. Your own bill depends on your county, city, and school district, plus any exemptions you claim — see the data box above.
Why is my Michigan property tax so high?
Property tax in Michigan is driven mostly by your local rates (especially school levies) and by your home’s assessed value. If your assessment is higher than what your home would actually sell for, you may be overpaying — that is the most common reason a bill is too high, and it is something you can appeal.
How can I lower my Michigan property tax?
Two things help most in Michigan: make sure you are claiming every exemption you qualify for (homestead, senior, veteran, or disability), and appeal your assessment if your home is over-valued. Both can lower your bill, and both are free to do yourself.
Michigan Property Tax Sources & Data
- Michigan Department of Revenue (property tax): https://www.michigan.gov/taxes/property
- Tax Foundation — Property Taxes by State & County: taxfoundation.org
- U.S. Census Bureau (American Community Survey): census.gov/acs
- Lincoln Institute of Land Policy (property tax data): lincolninst.edu
Michigan property tax rates and typical bills on this page come from U.S. Census (American Community Survey) data as
published by the Tax Foundation, and were last checked in July 2026. Rates and bills change each year and vary by county
— confirm your own figures with your county assessor before you rely on them.
More Property Tax Guides
- Property Tax Rates by State
- Property Tax by County
- Are You Overpaying? Over-Assessment Checker
- Property Tax Exemption Finder
Disclaimer: This guide is informational only and is not legal, tax, or financial advice. Know Property Tax is an independent educational resource. It is not a government agency, not a county assessor, and not a tax-appeal service. Property tax rates, bills, exemptions, and deadlines change over time and vary by county and property. Confirm anything that affects your taxes with your county assessor or a licensed professional before you act.