MI Real Estate Answers: I’m confused by property taxes in Michigan

Q. I’m confused by property taxes in Michigan. Is the amount listed on websites an exact value or estimated. What does homestead mean and what will happen when I buy?

A. Property taxes in Michigan can be confusing because the rates in every municipality are different.

First things first, homestead taxes mean the property is used for your primary residence. Because of that, you get reduction of about 30% on your taxes. Conversely, if you own the property as an investor, the taxes would be considered non-homestead and charged a higher rate (again, depending on the municipality).

Taxes shown on listings are what the current owner has been paying. It’s your Buyer’s Agent responsibility to research the tax implications informing you of the State Equalized Value (what the city ‘perceives’ the value to be), the Taxable Value (the value of the property upon which the current taxes are based), and what will happen once the home is sold.

Cities and Townships base their taxes on the value of homes in the surrounding areas. Therefore just because you buy a house under market, they won’t necessarily base your taxes on that sale price. If after reassessing you feel the taxes are too high, you can appeal them to the local municipality, usually a once a year process around the February/March timeframe.

Published 19 April 09 09:32 by Debra Drummond | MichiganMoves

Filed under: Michigan, homestead exemption, buyers, real esate, property taxes, homebuyers, SEV, taxable value, questions, answers

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# Raymond Kirk said on June 1, 2009 1:00 AM:

Good post, but have you thought about MI Real Estate Answers before?

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How do I get an SEV on-line for property located at

843 Holly Bush Dr. in Holly, MI?

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About Debra Drummond | MichiganMoves

Using personalized customer service and innovative online market techniques to sell residential real estate in the Western Wayne County and Oakland County areas of Southeast Michigan. Serving the I-275 corridor communities of Plymouth, Northville, Novi, Canton, Livonia and Farmington Hills.