Property Tax Guide

Curious of the property taxes of your future home? Click the button below.

I get lots of questions on property taxes and how they can adjust after the sale of a home.

This is with good reason! Property taxes are typically calculated into your monthly mortgage payments. However, average property taxes can change significantly between cities. Because of this, it's very important to take these numbers into account when deciding what you and your family can handle financially.

So...why do property taxes sometimes change at the time of sale so significantly?

MI Property taxes are calculated based on the SEV (state equalized value) and the city millage rate. The SEV is the assessed value that has been adjusted following county and state equalization. If you were to buy a home that appraised for $100,000, the assessed value would likely be 50,000. (The County Board of Commissioners and the Michigan State Tax Commission must review local assessments and adjust (equalize) them if they are above or below the constitutional 50% level of assessment.) Let's use a city millage rate of 45.00. Let’s assume the SEV is $50,000:

(SEV x Millage Rate / 1,000) = annual tax estimate
50,000 x 45.00 = 2,250,000/1,000 = approx. $2,250 annually

Property taxes can also increase annually...but they are capped once you own the home. This means that your property taxes cannot increase more than 5% annually, or the rate of inflation (whichever is lower at the time). Once you sell a home however, the cap is lifted and the new property taxes are based on the new assessed value of the home, and current millage rate.

If you're utilizing a lender, the loan officer will be able to get you an estimated monthly payment INCLUDING your taxes as long as they're aware of the city that you're interested in.

You can also call the municipality of the home you're interested in, and get an estimate from them.

If you have any further questions, please feel free to call, text, or email me at anytime!

313-598-0875