How is Michigan property tax calculated?

Michigan tax is the taxable value times the local millage rate, where a mill is $1 of tax per $1,000 of taxable value. Taxable value is roughly half the market value (the State Equalized Value), capped each year so it can't rise faster than inflation or 5%, whichever is less. Annual tax = (taxable value ÷ 1,000) × total mills.

What is the Michigan Principal Residence Exemption (PRE)?

The Principal Residence Exemption, formerly called the homestead exemption, exempts your primary home from the 18 mills of local school operating tax. It does not exempt other millages. Claiming the PRE typically saves several hundred dollars a year. Second homes, rentals, and commercial property pay the full non-homestead rate.

What does a 'mill' mean in Michigan property tax?

A mill equals one-tenth of a cent, or $1 of tax for every $1,000 of taxable value. If your taxable value is $100,000 and your total millage is 40 mills, your tax is 100 × $40 = $4,000. Total Michigan millage rates commonly run between 30 and 70 mills depending on the city, school district, and special assessments.

Why is taxable value different from market value in Michigan?

Michigan caps the growth of taxable value under Proposal A. The State Equalized Value (SEV) is half the market value, but the taxable value can be lower because it can only rise by the inflation rate (capped at 5%) each year until the property is sold. When a home sells, the taxable value 'pops up' to equal the SEV for the new owner.

Is this Michigan property tax estimate exact?

No. It is a close estimate using market value and your millage rate. Your actual bill depends on the assessor's taxable value (which may differ from half of market value due to the Proposal A cap), special assessments, and any additional exemptions. Check your assessment notice or county treasurer for exact figures.

Michigan Property Tax Estimator

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This tool estimates your annual Michigan property tax from a home’s market value and your local millage rate. Michigan assesses property at 50% of market value (the State Equalized Value), and the Principal Residence Exemption (PRE) removes 18 mills of school operating tax on your primary home. Enter your numbers to see the bill with and without the exemption.

How it works

taxable value = market value × 50%        (State Equalized Value baseline)
PRE saving    = 18 mills removed if primary residence
tax           = (taxable value ÷ 1,000) × effective millage

A mill is $1 per $1,000 of taxable value. Total Michigan millage rates typically run 30–70 mills. Choosing the PRE subtracts 18 mills (the local school operating levy) from your rate.

Mills and the Proposal A cap

Taxable value is normally half of market value, but Proposal A caps its annual growth at the lesser of inflation or 5% until the home sells.
When a property sells, its taxable value “pops up” to the full State Equalized Value for the new owner.
This estimator uses 50% of market value as the taxable base; your assessor’s figure may be lower if you’ve owned the home for a while.

Worked example

A $300,000 home that is your primary residence, in a district with 50 mills total:

Taxable value = $300,000 × 50% = $150,000
With PRE, effective millage = 50 − 18 = 32 mills
Annual tax = (150,000 ÷ 1,000) × 32 = $4,800

Without the PRE (e.g. a rental), the bill would be (150 × 50) = $7,500.

Note: Estimate only — not tax advice. Your real taxable value may be capped below half of market value, and special assessments can add to the bill. Verify with your city/township assessor or county treasurer.