Property Taxes in Michigan
Michigan's effective property tax rate is 1.15%, ranking #37 out of 50 states (1 = lowest). The median annual property tax paid is $2,750.
Michigan's property tax system includes a unique feature called the Proposal A cap, which limits annual assessment increases on existing homeowners to the lesser of 5% or the rate of inflation. When a property sells, however, the taxable value 'uncaps' and resets to the current assessed value (50% of market value). This means the previous owner may have been paying significantly less in taxes than you will as the new buyer. Check the property's current taxable value versus its State Equalized Value (SEV) to understand the tax increase you'll face at purchase.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Tax Foundation, U.S. Census
Tax Rate
1.15%
Median Annual Tax
$2,750
National Rank
#37 of 50
1 = lowest
Homestead Exemption
Yes
Annual Property Tax by Home Price
| Home Price | Annual Tax | Monthly |
|---|---|---|
| $200,000 | $2,300 | $192 |
| $300,000 | $3,450 | $288 |
| $400,000 | $4,600 | $383 |
| $500,000 | $5,750 | $479 |
| $750,000 | $8,625 | $719 |
* Based on the average effective rate of 1.15%. Actual rates vary by county and municipality.
Homestead Exemption in Michigan
Up to $40,475
File for the homestead exemption after purchasing your primary residence in Michigan to reduce your assessed property value, lowering your annual tax bill. Contact your county assessor's office for the application.
How Michigan Compares
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