Property Taxes in Michigan: Rates, Exemptions, and How They Work (2026)
TL;DR
Michigan property taxes revolve around two key values: State Equalized Value (SEV) at 50% of market value, and Taxable Value, which is capped at the lesser of 5% or CPI increase per year under Proposal A. The cap resets ("uncaps") to SEV when the property transfers, which can mean a large tax increase for buyers. The Principal Residence Exemption (PRE) eliminates 18 mills of school operating tax on your primary home. Appeal to the March Board of Review, then the Michigan Tax Tribunal if needed. Average effective rate is about 1.38%.
SEV vs Taxable Value
Michigan has two values on your property record:
| Value | Definition | How It Changes |
|---|---|---|
| State Equalized Value (SEV) | 50% of market value | Changes with market conditions |
| Taxable Value | The value taxes are calculated on | Capped at 5% or CPI increase/year (Proposal A) |
Your taxes are based on Taxable Value, not SEV. For long-term owners, Taxable Value is often well below SEV, providing significant tax savings.
Uncapping on Transfer
When a property is sold or transferred, the Taxable Value "uncaps" and resets to SEV (50% of market value). This can cause a dramatic tax increase for the new owner. A home with a Taxable Value of $80,000 and an SEV of $150,000 would see the new owner's taxable value jump from $80,000 to $150,000.
Principal Residence Exemption (PRE)
If you live in the home as your primary residence, you qualify for the PRE, which eliminates 18 mills of school operating tax. This saves roughly $18 per $1,000 of taxable value. On a home with $150,000 taxable value, that is $2,700/year in savings.
File Form 2368 with your local assessor by June 1 to receive the PRE for that tax year.
Other Exemptions
| Exemption | Benefit | Who Qualifies |
|---|---|---|
| Poverty Exemption | Partial or full exemption | Household income below federal poverty guidelines |
| Disabled Veterans | Full exemption | 100% disabled veterans |
| Agricultural (PA 116) | Reduced assessment for farmland | Qualifying agricultural properties |
Appeal Process
- March Board of Review: File a protest by the first Monday in March (or Tuesday). Hearings through mid-March.
- July Board of Review: For hardship/poverty exemptions and certain corrections
- Michigan Tax Tribunal: Appeal within 35 days of Board of Review decision. Small Claims Division for residential under $100,000 SEV.
Payment Schedule
Summer taxes due July 1 (delinquent September 14). Winter taxes due December 1 (delinquent February 14 with 1% interest per month). Delinquent taxes are turned over to the county treasurer on March 1.
Check your Michigan assessment with our free property tax analyzer. The uncapping on transfer makes accurate initial assessment critical for new homeowners.
Frequently Asked Questions
What should I know about property taxes in michigan: rates, exemptions, and how they work (2026)?
Michigan property taxes revolve around two key values: State Equalized Value (SEV) at 50% of market value, and Taxable Value, which is capped at the lesser of 5% or CPI increase per year under Proposal A. The cap resets ("uncaps") to SEV when the property transfers, which can mean a large tax increase for buyers. The Principal Residence Exemption (PRE) eliminates 18 mills of school operating tax on your primary home.
How do they compare in terms of sev vs taxable value?
Michigan has two values on your property record:
What should I know about principal residence exemption (pre)?
If you live in the home as your primary residence, you qualify for the PRE, which eliminates 18 mills of school operating tax. This saves roughly $18 per $1,000 of taxable value. On a home with $150,000 taxable value, that is $2,700/year in savings.
What should I know about payment schedule?
Summer taxes due July 1 (delinquent September 14). Winter taxes due December 1 (delinquent February 14 with 1% interest per month). Delinquent taxes are turned over to the county treasurer on March 1.