Michigan property tax assessment rules: what every homeowner must know

Last updated 2026-07-09

How does Michigan calculate your property tax assessment?

Michigan puts three separate values on every assessment notice, and mixing them up is the single biggest source of homeowner confusion. Here is what each one means.

State Equalized Value (SEV) is the assessor's estimate of 50% of your property's true cash value (fair market value) as of December 31 of the prior year. If the assessor thinks your home would sell for $300,000, your SEV should be $150,000. Michigan's constitution requires this 50% ratio statewide, and the state's equalization process is supposed to keep every county honest about it ^[1].

Taxable Value (TV) is the number your actual tax bill is calculated from. Under Proposal A, passed in 1994, taxable value is capped. Each year it can only rise by the lesser of 5% or the rate of inflation, measured by the Consumer Price Index ^[2]. This cap resets to the SEV the year after the property transfers ownership, a process called "uncapping."

Assessed Value (AV) is often used interchangeably with SEV in Michigan. Your assessment notice shows all three numbers. The practical rule: if you bought the house more than a year ago and haven't added square footage, your TV is almost certainly lower than your SEV, and that gap is protecting you.

Your tax bill equals your taxable value divided by 1,000, multiplied by your local millage rate. A home with a $120,000 taxable value in a 30-mill district pays roughly $3,600 a year in property taxes ^[1].

The SEV-versus-TV distinction matters most when you compare your bill to a neighbor's. Two identical houses bought in different years can carry wildly different tax bills under Proposal A. That is legal, and by itself it is not grounds for appeal.

What is the Michigan property tax assessment calendar and when are deadlines?

Miss a deadline and your appeal dies before it starts. Michigan's property tax calendar runs on a tight schedule set by the General Property Tax Act (MCL 211.1 et seq.) ^[3].

Deadline	What happens
December 31 (prior year)	Assessment date: assessor values property as of this date
February 1	Tentative assessment roll certified; notices mailed
Second Monday in March	Board of Review meets; last day to file a residential appeal
May 31	Last day to petition the Michigan Tax Tribunal for residential property (prior year assessment)
July 31	Deadline to appeal the current year's assessment to the Michigan Tax Tribunal after a Board of Review denial
December	Final tax bills for summer and winter levies

The March Board of Review is your first line of appeal and it costs nothing to attend. The meeting date varies by township or city but has to fall between the second Monday and the third Monday of March ^[3]. Check your local township or city website for the exact schedule, because some places hold sessions by appointment only.

One thing trips people up. The Michigan Tax Tribunal (MTT) has two separate windows depending on what you want to challenge. For residential property, the window to appeal a prior year assessment without first going to the Board of Review runs through May 31 of that tax year. If you did go to the Board of Review and lost, you have until July 31 to file at the MTT ^[4]. Miss July 31 and you lose that year entirely.

How do Michigan property tax assessments compare across value types?

The chart below shows how SEV, taxable value, and a hypothetical market value drift apart over time for a home bought in 2010 and held ever since. The numbers reflect the compounding effect of the Proposal A cap and are drawn from the structure of MCL 211.27a ^[2].

This gap is real money. The Michigan Department of Treasury has reported that long-term homeowners in appreciating markets frequently sit 30% to 50% below their SEV on taxable value, so they pay tax on far less than the assessor's estimated half of market value ^[9]. That is the system working as designed. It also means if you just bought, you are likely paying more than the neighbor who has owned the same model house next door for fifteen years.

What is the Proposal A taxable value cap and how does uncapping work?

Proposal A (Michigan Constitutional Amendment, 1994) is the most homeowner-friendly piece of Michigan property tax law, and it is also the source of the biggest surprise bills ^[2].

Each year, the assessor may raise your taxable value by the inflation rate multiplier (IRM) or 5%, whichever is lower. The state sets the IRM each fall. For tax year 2024, the IRM was 1.05 (meaning 5%), matching the statutory cap. For tax year 2023, it was also capped at 1.05. In a low-inflation year like 2016, the IRM was 1.003, so taxable value could rise only 0.3% ^[5].

Here is where it gets expensive: uncapping. When a property transfers ownership, the taxable value snaps up to the SEV in the year following the transfer. Say you bought a home in 2023 where the long-term owner had a taxable value of $90,000 but the SEV was $160,000. Your taxable value becomes $160,000 starting in your first full tax year of ownership. Your bill can jump by 50% or more overnight, completely legally.

Certain transfers do NOT trigger uncapping. Transfers between spouses, transfers to certain family members following death, transfers into a trust where the owner stays a beneficiary, and a few other categories are exempt from uncapping under MCL 211.27a(7) ^[2]. Inherited a property or moved it into a living trust? Check whether uncapping should have happened at all before you assume the assessment is right.

You can dispute an improper uncapping (or an improper failure to uncap) at the Board of Review and then the MTT. These cases turn on the facts, and they are sometimes worth pursuing, especially on higher-value properties.

What Michigan property tax exemptions can lower your bill?

Michigan has several exemptions that reduce either the taxable value or the millage rate applied to your property. Here are the ones most homeowners can actually use.

Principal Residence Exemption (PRE) is the big one for homeowners. If the property is your primary residence, you qualify for a full exemption from the 18-mill school operating levy. On a home with a $150,000 taxable value, that saves roughly $2,700 a year. You file Form 2368 with your local assessor. No income limit, no age limit. File by June 1 for the summer tax bill and by November 1 for the winter bill ^[6].

Poverty Exemption (Hardship Exemption) lets municipalities reduce or eliminate property taxes for homeowners who meet income guidelines. Each city or township sets its own threshold but has to meet the federal poverty guidelines at minimum. You apply every year at the March Board of Review and provide tax returns and documentation ^[7].

Disabled Veterans Exemption exempts 100% of the property's taxable value for veterans with a service-connected disability rated at 100% by the VA, or who are individually unemployable. Since 2013 (MCL 211.7b), surviving unremarried spouses also qualify ^[8].

Senior Citizens Exemption and Tax Deferment is handled locally and varies by municipality. Cities like Detroit and Ann Arbor have their own senior exemptions. A separate state program lets low-income seniors defer property tax payment until the property sells (MCL 211.761) ^[3].

Agricultural Exemption applies to qualified farmland classified under the Farmland and Open Space Preservation Act. The millage reduction varies.

Filing the PRE is free and takes about ten minutes. If you bought a home and the seller had the PRE, it does not carry over to you. You file your own Form 2368 within the window.

How do you appeal a Michigan property tax assessment yourself?

The appeal process runs three levels in Michigan, and most homeowners who do their homework win at level one without paying anyone a cut of their savings.

Step 1: Read your assessment notice. It arrives in February. Check your SEV against recent comparable sales. Your assessor has to value at 50% of true cash value, so if comparable homes nearby are selling for $280,000 and your SEV is $175,000 (implying a $350,000 market value), you have a real argument ^[1].

Grab three to five comparable sales from the past twelve months in your neighborhood. Michigan law tells the assessor to use sales within a reasonable time and geography. Pull them from the county register of deeds, your county's online GIS parcel viewer, or free sites like Zillow and Redfin. For more on finding and using comps, see our guide to property assessment value.

Step 2: File a protest at the March Board of Review. You can appear in person, send a written protest, or in many places submit online. Bring your comp data, a printed grid comparing your property to the comps, and any evidence of condition problems (deferred maintenance, foundation issues, functional obsolescence). No lawyer needed. No appraiser needed. A clean spreadsheet comparing your SEV to 50% of three recent comparable sales is enough to put the assessor on defense ^[3].

The Board of Review has to respond to every protest with a written decision. Most come the same day or within a few days.

Step 3: File at the Michigan Tax Tribunal if you need to. If the Board of Review denies you, you have until July 31 to file a Small Claims petition at the MTT for residential property with a true cash value under $100,000, or you may still use Small Claims for higher-value residential homesteads. The filing fee is $300 (as of 2024). You can represent yourself. The MTT runs most Small Claims hearings by video. You submit your evidence package (comps, an appraisal if you have one, photographs, your original protest) electronically through the MTT portal ^[4].

Contingency firms usually charge 30% to 50% of the first year's tax savings. Save $1,500 and a firm takes $450 to $750; you keep $750 to $1,050. Do it yourself and you keep all $1,500. The TaxFightBack DIY appeal kit walks you through building the exact evidence package the MTT looks for, no contingency cut.

For how appeals work across the country, this overview of property tax covers the fundamentals that apply in every state.

What evidence does Michigan require to win a property tax appeal?

The Michigan Tax Tribunal's standard is preponderance of the evidence: you show it is more likely than not that the assessor's value is wrong. You do not need a licensed appraisal to win at Small Claims, though one strengthens your case a lot.

The MTT has held over and over that arm's-length sales of comparable properties are the strongest evidence. MCL 211.27 states that "the assessed value of property shall be 50% of its true cash value," and true cash value is the usual selling price ^[1]. Show that properties like yours are selling at prices implying a true cash value below what the assessor assumed, and that is your argument.

Here is what a strong DIY evidence package looks like:

• A one-page summary grid: your property's characteristics (square footage, age, bedrooms, bathrooms, lot size, garage, condition) in the left column, each comp in its own column.
• Sale prices for each comp, sourced from the register of deeds or the county GIS.
• Adjustments for differences: plus or minus a reasonable dollar amount for square footage gaps, extra bathrooms, and so on.
• Photographs of any condition issues, especially things the assessor cannot see from the street.
• The assessment notice itself and the property record card, available from your local assessor's office under Michigan's Freedom of Information Act.

One common mistake: appealing your SEV when your taxable value already sits well below it. Cutting the SEV does not lower your current tax bill if your TV is the number driving it. Run the math first. Our article on values assessment walks through that calculation.

Another mistake: using foreclosure sales or bank-owned sales as comps. Michigan law excludes non-arm's-length transactions from the assessor's sales study, and the MTT will discount those sales in your evidence too.

How does Michigan's equalization process affect your assessment?

Every spring, Michigan runs a state-level equalization process that can move your county's assessments before you ever get a chance to appeal. Knowing how it works tells you whether the system is fair or whether your county is running assessments that are systematically too high.

First, each local assessor certifies the local rolls and sends them to the county equalization department. The county equalizes assessments across townships and cities to make sure everyone sits at the 50% level. Then the Michigan Department of Treasury's State Tax Commission (STC) runs a statewide equalization study for each class of property: residential, commercial, industrial, agricultural, and developmental ^[9].

Say the STC finds a county's residential assessments are at 47% of market value instead of the required 50%. It applies an equalization factor to bring them up. If assessments run high at 53%, the factor brings them down. This happens in April and shows up in the SEV on your final assessment roll.

Why does it matter to you? If your county's factor gets pushed up, your SEV rises even when the local assessor never touched your individual assessment. That can hand you grounds for appeal even if your house value hasn't moved. Watch the STC's annual equalization report for your county, published each spring ^[9].

The STC also sets minimum qualification standards for assessors and can audit local practices. If you think your local assessor is over-assessing a whole neighborhood, you can file a complaint with the STC.

What happens to your assessment when you buy a home in Michigan?

This catches a lot of new owners off guard. The year you buy, the taxable value on the listing or the county website is the seller's capped taxable value, often far below the SEV. Your first full tax bill as owner runs on the uncapped value.

The assessor issues a Notice of Transfer and Uncapping (Form 4640) ^[2]. The new taxable value equals the property's SEV in the year following the transfer. If the home's SEV the year you bought it was $160,000, your taxable value resets to $160,000 for the next tax year, no matter what the previous owner paid.

Here is a real-world example. You buy in August 2024. The 2024 SEV on the county record is $155,000. The seller's 2024 taxable value was $98,000 because they owned the home for twenty years. Your 2025 taxable value becomes $155,000 (or the 2025 SEV, whichever the assessor certifies). Your bill tracks the full SEV from year one.

What you CAN appeal after a purchase is the SEV itself. If comparable homes are selling at prices implying a true cash value below 2 times the SEV on your notice, you have a legitimate case. Your purchase price is powerful evidence, but only if it was a true arm's-length deal. Pay $290,000 for a home with a $155,000 SEV and you actually support the assessor's number (2 x $155,000 = $310,000, close to your price). Pay $240,000 with a $155,000 SEV and your argument gets stronger.

For how property tax records and sale histories tie into assessments, see our guide on property tax records.

How does Michigan property tax compare to other states?

Michigan's effective property tax rate (taxes paid as a share of home value) runs higher than the national average. The Lincoln Institute of Land Policy puts Michigan's effective rate for owner-occupied housing in the range of 1.3% to 1.5% of market value in recent years, against a national median around 1.0% ^[10].

That said, the Proposal A cap means long-term owners often pay on values well below market, which softens the real burden. New buyers feel the full rate right away. The contrast inside Michigan is sharp: Wayne County (Detroit) carries some of the highest effective rates in the country for homeowners who pay, while owners in Oakland and Kent County ride the cap down after a few years.

Michigan's millage structure also differs from California (Proposition 13, which works much like Proposal A) or states with no cap at all like New Hampshire, where assessments reset to full market value every year. If you want to see how Michigan stacks up against a county like Clark County property tax or Philadelphia property tax, the underlying mechanics differ a lot even when the appeal logic rhymes.

For Michigan specifically, the STC publishes an annual report on state equalized value and taxable value by county ^[9]. That data shows the statewide gap: aggregate taxable value has run roughly 20% to 25% below SEV for residential property in recent years, the accumulated weight of the Proposal A cap.

What are the rules for commercial and industrial property assessments in Michigan?

Commercial and industrial property follows the same 50% of true cash value rule, but the valuation methods and appeal strategy differ a lot from residential.

For income-producing property, the assessor is supposed to weigh all three approaches to value: sales comparison, income, and cost. For an apartment building or retail strip, the income approach usually wins. The assessor estimates potential gross income, subtracts vacancy and expenses, and capitalizes the net operating income at a market cap rate to reach a value ^[1].

Commercial appeals at the MTT use the General Division rather than Small Claims once true cash value tops $100,000. The General Division is more formal, timelines run longer, and you almost certainly want professional help for a case that size. Appraisers who hold the MAI designation from the Appraisal Institute and who specialize in Michigan commercial work are the standard for these cases.

One Michigan-specific wrinkle: the "Assessable Transfer of Interests" (ATI) rule. When ownership of a legal entity that holds commercial real estate transfers, the property can uncap even though no deed changes hands. This catches many commercial investors off guard. MCL 211.27a covers ATIs and the exceptions ^[2].

For commercial owners, getting the property record card and the assessor's income approach worksheet through a FOIA request is a smart first step. Errors in the assessor's estimated rents, vacancy rates, or capitalization rates are common and correctable on appeal.

Where can you find your Michigan property assessment information?

You have several free ways to pull your current and prior assessments.

The most direct source is your local township or city assessor's office. Every assessor in Michigan has to keep a publicly accessible property record card showing the characteristics used to value your property. Under the Michigan Freedom of Information Act, you can request it for free or a nominal copying fee ^[11].

Most Michigan counties now run online parcel viewers or GIS portals. The Oakland County online property search, the Kent County GIS, and the Washtenaw County property gateway all let you see current SEV, taxable value, and recent neighborhood sales without calling anyone. Search "[your county] Michigan property search" to find the right portal.

The Michigan Department of Treasury website has assessment forms, the Principal Residence Exemption form (2368), equalization reports, and appeal guidance ^[12].

The Michigan Tax Tribunal has its own portal for filing and tracking Small Claims and General Division cases ^[4].

For comparable sales, the county register of deeds keeps records of every property transfer. Many counties post these online. The STC's annual sales study data by county is public too, and it shows the ratio of assessed value to sale price, a useful benchmark for whether your county is running assessments accurately ^[9].

If you use a third-party lookup tool, cross-check the numbers against the official county portal. Third-party data can lag by months, especially after a reassessment year. Our property tax lookup tool links straight to official county sources for Michigan.

Frequently asked questions

What is the deadline to appeal a property tax assessment in Michigan?

The primary deadline is the second Monday in March, when the Board of Review meets. If you miss the Board of Review or lose there, you can file at the Michigan Tax Tribunal by May 31 for a prior year assessment or by July 31 after a Board of Review denial for the current year. Check your local municipality for exact meeting times, since some require advance appointments.

What percentage of market value does Michigan assess property at?

Michigan assessors are required by the state constitution to assess property at 50% of its true cash value, which is defined as the usual selling price. This figure is the State Equalized Value. The taxable value you actually pay taxes on is usually lower than the SEV thanks to the Proposal A annual cap.

How much can Michigan raise my property taxes each year?

Your taxable value can rise by the lesser of 5% or the rate of inflation (measured by the Consumer Price Index) each year. The State Tax Commission sets the inflation rate multiplier every fall. The cap has been as low as 0.3% in low-inflation years. It resets to the full State Equalized Value the year after your property transfers to a new owner.

What is the Michigan Principal Residence Exemption and how do I file for it?

The Principal Residence Exemption (PRE) removes your home from the 18-mill school operating levy if the property is your primary residence. That saves roughly $18 per $1,000 of taxable value a year. File Form 2368 with your local assessor by June 1 for the summer tax bill or November 1 for the winter bill. No income or age requirement applies.

Can I appeal my Michigan property taxes without a lawyer or appraisal?

Yes. At the March Board of Review, anyone can appear in person or submit a written protest without professional help. At the Michigan Tax Tribunal Small Claims level, you can represent yourself, file electronically, and submit your own comparable sales data. An independent appraisal strengthens your case but is not required to win.

What is taxable value uncapping in Michigan and when does it happen?

When a property changes ownership, the taxable value resets to the State Equalized Value in the following tax year, wiping out any accumulated Proposal A cap savings. This is uncapping. Certain transfers are exempt: transfers between spouses, specific family transfers after death, and transfers into living trusts where the owner stays a beneficiary, under MCL 211.27a(7).

How do I file a Small Claims petition with the Michigan Tax Tribunal?

File online through the MTT e-filing portal after the Board of Review denies your appeal. The filing fee for residential Small Claims is $300 (as of 2024). Submit your evidence package electronically, including your assessment notice, comparable sales grid, and any photographs. Most Small Claims hearings run by video. File by July 31 for a current-year appeal.

Does buying a home in Michigan reset my property taxes?

Effectively yes. In the year after purchase, your taxable value uncaps to the full State Equalized Value, which can sharply raise your tax bill compared to what the prior owner paid. You can still appeal the SEV itself if comparable sales suggest the assessor's estimated market value is too high, and your purchase price is relevant evidence in that appeal.

What exemptions are available for disabled veterans in Michigan?

Veterans with a 100% service-connected disability rating from the VA, or who are individually unemployable, are fully exempt from property tax on their primary residence under MCL 211.7b. Surviving unremarried spouses of qualifying veterans also qualify. The exemption covers the entire taxable value rather than a partial reduction, and there is no income limit.

What is the role of the State Tax Commission in Michigan property taxes?

The Michigan State Tax Commission oversees equalization, makes sure every county assesses at 50% of true cash value, sets assessor qualification standards, and publishes the annual inflation rate multiplier used to cap taxable value increases. If a county's assessments run off the 50% mark, the STC applies an equalization factor. It also handles assessor certification and can audit local practices.

How do I find comparable sales for my Michigan property tax appeal?

Pull recent arm's-length sales from your county's online GIS or parcel viewer, the county register of deeds, or real estate sites like Zillow and Redfin. Use sales from the twelve months before December 31 of the assessment year. Look for homes in your subdivision or nearby with similar square footage, age, and condition. Skip bank-owned or foreclosure sales; Michigan law excludes non-arm's-length transactions.

Can my Michigan property taxes be frozen if I'm a senior citizen?

Michigan has no blanket senior property tax freeze, but some municipalities offer local senior exemptions. A separate state program lets eligible low-income seniors defer property tax payments until the property sells, with interest accruing, under MCL 211.761. Income thresholds vary. Contact your local assessor or the Michigan Department of Treasury for current program details.

What is the poverty exemption for Michigan property taxes?

Michigan townships and cities can reduce or eliminate property taxes for homeowners with very low incomes under MCL 211.7u. You apply each year at the March Board of Review with income documentation including tax returns. Each municipality sets its own income threshold but must at minimum use federal poverty guidelines. The exemption amount is set locally and can be partial or full.

How long does a Michigan Tax Tribunal appeal take to resolve?

Small Claims cases at the MTT typically resolve within six to eighteen months of filing, depending on the docket and whether the case settles before a hearing. Many residential cases settle after the assessor reviews the homeowner's evidence. General Division commercial cases take longer, often two to three years or more. You receive any refund or credit after a final order is issued.

Sources

1. Michigan Legislature, MCL 211.27 (True Cash Value definition): True cash value is defined as the usual selling price; assessors must assess at 50% of true cash value under the Michigan constitution and General Property Tax Act.
2. Michigan Legislature, MCL 211.27a (Taxable Value, Proposal A cap, uncapping rules): Taxable value increases are capped at the lesser of 5% or the inflation rate multiplier; uncapping occurs upon transfer of ownership with specific exceptions listed in subsection 7.
3. Michigan Legislature, MCL 211.1 et seq. (General Property Tax Act, Board of Review timelines): The Board of Review meets in the second through third Monday of March; homeowners may protest assessments in person or in writing.
4. Michigan Tax Tribunal (filing, deadlines, Small Claims and General Division portal): Homeowners denied at the Board of Review have until July 31 to file at the MTT; Small Claims filings and evidence packages are submitted electronically.
5. Michigan Department of Treasury, State Tax Commission Inflation Rate Multiplier history: The IRM has ranged from 1.003 in low-inflation years to the 1.05 statutory cap in years where CPI exceeded 5%, including tax years 2023 and 2024.
6. Michigan Department of Treasury, Principal Residence Exemption (Form 2368): Homeowners must file Form 2368 by June 1 for the summer tax bill or November 1 for the winter bill to receive the PRE exemption from the 18-mill school operating levy.
7. Michigan Legislature, MCL 211.7u (Poverty Exemption): Townships and cities may exempt poverty-qualifying homeowners; applications are made annually at the March Board of Review with income documentation.
8. Michigan Legislature, MCL 211.7b (Disabled Veterans Exemption): Veterans rated 100% service-connected disabled or individually unemployable receive a full property tax exemption on their primary residence; surviving unremarried spouses also qualify.
9. Michigan Department of Treasury, State Tax Commission Annual Equalization Reports: The STC publishes annual equalization data by county showing aggregate SEV, taxable value, and sales ratio studies used to apply equalization factors statewide.
10. Lincoln Institute of Land Policy, 50-State Property Tax Comparison Study: Michigan's effective property tax rate on owner-occupied housing has ranged from approximately 1.3% to 1.5% of market value in recent years, above the national median of around 1.0%.
11. Michigan Legislature, Michigan Freedom of Information Act, MCL 15.231 et seq.: Property record cards and assessor worksheets are public records obtainable from local assessors under FOIA for free or a nominal copying fee.
12. Michigan Department of Treasury, Property Tax main page: The Michigan Department of Treasury provides assessment forms, exemption applications, equalization guidance, and appeal information for homeowners statewide.