A homeowner’s guide to property tax in Michigan

In Michigan, property taxes fund public K-12 schools, community colleges, road maintenance, police and fire departments, and more. However, the rate at which residents’ property is taxed can vary widely across the state.

Whether you own a home now or plan to buy one in the future, this guide can help you understand how to calculate and pay Michigan property tax.

How much is property tax in Michigan?

As of 2026, the effective property tax rate in Michigan was 1.25% but can vary depending on the county where the property is located.

An effective property tax rate estimates the percent, on average, of a property’s value that’s paid annually in taxes. For example, a $100,000 property with a 1.25% effective property tax rate would owe $1,250 in property taxes per year ($100,000 x 0.0125).

Keep in mind, however, that effective property tax rates can vary by county and from year to year. For instance, Michigan’s effective property tax rate jumped from 1.08% in 2022 to 1.15% in 2023.

In addition to your mortgage rate, your property taxes and homeowners insurance will impact your total cost for housing. If you get a fixed-rate mortgage when you buy a home in Michigan, the payment for your principal and interest will remain the same, but your property taxes and insurance will likely go up every year.

Is property tax in Michigan higher than in other states?

In 2026, Michigan’s effective property tax rate was 38th among the 50 U.S. states and Washington, D.C. on a scale where New Jersey ranked 51^st since it had the most expensive property taxes and Hawaii ranked 1^st for having the least expensive property taxes. This puts it squarely in the top half of states for the most expensive property taxes.

Where is property tax the highest in Michigan?

The Michigan county with the highest effective property tax rate in 2023 was Ingham County at 1.86%. Here’s a list of the top five Michigan counties for the highest property tax rates:

• Ingham County (1.86%)
• Wayne County (1.64%)
• Bay County (1.63%)
• Saginaw County (1.57%)
• Washtenaw County (1.56%)

Meanwhile, Michigan counties with the lowest property tax rates included:

• Leelanau County (0.70%)
• Benzie County (0.83%)
• Alcona County (0.84%)
• Kalkaska County (0.89%)
• Otsego County (0.89%)

How to estimate your Michigan property tax

While the county will calculate your property taxes for you, you can estimate what the bill will be in advance. This can be especially helpful if you don’t pay your tax bill via your mortgage payment. It lets you know how much to save so you can pay your property taxes on time.

Here’s how to calculate your owed property taxes in three simple steps:

1. Calculate the assessed value

First, determine your home’s assessed value. This is different from its appraised value, which lenders use to value your home.

An assessed value is a dollar amount the county assigns to your home for tax purposes. It’s based on something called an assessment ratio. For example, if the assessment ratio in your county is 50% and your home is worth $500,000, your assessed value would be $250,000.

In Michigan, the assessment ratio can’t exceed 50%.

2. Deduct any exemptions

Some homeowners can get partial or full exemptions from property taxes. For example, homesteads, senior citizens, and disabled veterans often qualify for exemptions. Check with your county’s assessment office and deduct any exemptions from your assessed value.

3. Apply your millage rate

Finally, apply your millage rate (aka mill rate) to your property’s assessed value.

A millage rate is the amount of property tax you owe for every $1,000 of your property’s assessed value. For example, if a county has a millage rate of 10, this means you’ll owe $10 per $1,000 of assessed property value. Sometimes the millage rate is also expressed as a decimal, such as 0.01 or 1% instead of 10.

For a property with an assessed value of $200,000, a millage rate of 10 (or 0.01 or 1%) would mean you’d owe $2,000 in annual property taxes ($200,000 x 0.01).

Millage rates can vary by townships and school districts. For example, in 2024, the Chippewa Valley School District in Macomb Township, MI had a millage rate of 30.6968, while the rate in Bath Community School District in Bath Township, MI, was 37.0059.

If you know your school district, Michigan’s Department of Treasury also has an online tool you can use to estimate property taxes.

How to pay property tax in Michigan

There are two ways to pay property taxes in Michigan. One is to pay them through your mortgage, which you must arrange through your lender when signing your loan paperwork. In this case, your lender puts part of your monthly payment in an escrow account set aside for property taxes (and often insurance), then pays them for you, usually every three to six months.

The other option is to pay your property taxes directly to the county. For example, in Wayne County (which includes Detroit), you can pay property taxes online on the county’s website. Just make sure you know when property taxes are due, so you don’t pay late or miss payments.

Bottom line: Michigan property taxes are higher than in most states

Ultimately, understanding Michigan’s property tax system is essential for making informed homeownership decisions in the state.

Whether you’re buying your first home or refinancing, having a clear picture of your total housing costs, property taxes included, can set you up for long-term financial success. If you're ready to buy a home in Michigan, apply for a mortgage today with Rocket Mortgage.