Buyer basics
How do Michigan property taxes work?
Michigan property tax has a few terms that sound alike but mean different things. Once you know the four values, the bill is easier to read.
The four values
True Cash Value is the market value. Assessed Value is usually half of that. State Equalized Value, or SEV, is the assessed value after county and state equalization. Taxable Value is the number used to calculate the bill.
Under Proposal A , Taxable Value can be lower than SEV. That gap is why long-held homes can have a large pop-up when sold.
The formula
Annual property tax equals Taxable Value divided by 1,000, multiplied by the total millage rate. If your Taxable Value is $150,000 and your rate is 40 mills, the bill is about $6,000 per year.
What is a mill?
A mill is just the tax rate. One mill means $1 of tax for every $1,000 of Taxable Value. So 40 mills means about $40 for every $1,000 of Taxable Value.
The important part is the phrase Taxable Value. Mills are not charged against the full purchase price. They are charged against the taxable value used on the tax roll.
Why one city can cost more than another
Your total millage is a stack of local taxes. It can include the state education tax, county taxes, city or township taxes, school taxes, library taxes, public safety taxes, parks, drains, debt, and other voter-approved items.
That is why two homes with the same price can have different tax bills. A house across a city line, a township line, or a school district line may have a different stack of mills.
Michigan Treasury publishes the official millage rates . This calculator uses those published rates so you do not have to sort through the numbers yourself.
Summer and winter bills
Many Michigan communities split the annual tax into a summer bill and a winter bill. Summer bills are commonly mailed in July. Winter bills are commonly mailed near December. The exact split depends on the local city, township, county, and school district.
If unpaid taxes stay delinquent, meaning officially late, they move to the county treasurer after March 1. The county treasurer is the county office that collects late property taxes. Always confirm due dates with the local treasurer before closing.
This guide explains how the math works, but it is not legal or tax advice. For your specific situation, confirm with your local assessor or a Michigan tax professional.
Sources and review
Where this information comes from
Michigan property-tax terms and rate reports come from Treasury guidance, State Tax Commission materials, and local assessment practice.
- Data used
- Michigan Treasury property tax and millage guidance
- Last reviewed
- June 8, 2026
- Michigan Treasury millage-rate reports for official local millage-rate reports.
- Michigan Treasury change-of-ownership guidance for Proposal A, uncapping, and ownership-transfer rules.
- State of Michigan property tax estimator for official parcel-oriented property tax estimate.
Use this carefully: This guide explains the general Michigan math. A local assessor, treasurer, or tax professional should confirm a specific parcel or appeal situation.
Next steps
Put the basics to work
Once the terms make sense, these pages help you apply them to a real home.
Calculator
Estimate your tax after buying
Compare the seller's current bill with your projected first full-year bill.
Use calculator →Guide
Read about uncapping
Learn why Taxable Value can reset after a normal sale.
Read guide →Tax break
Check the PRE guide
See how the primary-home tax break can remove up to 18 school operating mills.
Read PRE guide →Michigan Porch email
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