Michigan Property Tax

Effective Property Tax Rate

128.45%

Median Annual Tax

$2,795

Median Home Value

$217,600

Michigan Property Tax Overview

Based on the most recent American Community Survey (ACS) 5‑year estimates for 2023.

Key Figures (ACS 2023)

Metric	Value
Median home value in Michigan	$217,600
Average effective property tax rate	1.28 %
Median annual property tax	$2,795
National average effective property tax rate	0.97 %
Michigan’s rate relative to the national average	32.74 % higher
Rank among U.S. states/territories	38 out of 52

Note: The effective property tax rate is calculated as the median annual tax divided by the median home value.

Example Property‑Tax Bills

Using the average effective rate of 1.28 %, the following are illustrative annual taxes:

Home value	Approximate annual property tax
$250,000	$3,211
$500,000	$6,423

These figures are estimates; actual tax bills can differ because property tax rates vary by county, city, and school district.

Comparison to the National Average

Effective rate: Michigan’s 1.28 % is 0.31 pp (percentage points) above the national average of 0.97 %.
Relative standing: At 1.28 %, Michigan ranks 38th out of the 52 states and territories included in the ACS data set, meaning many states have lower effective rates.

Variation Across Counties

Michigan’s property‑tax system is administered at the local level. Each of the state’s 83 counties sets its own millage rates for:

County government services
Municipal services (cities, townships, villages)
School districts
Special districts (e.g., fire, libraries)

Consequently, a homeowner in Wayne County may face a different overall rate than a homeowner in Alpena County even for properties of identical value.

Considerations for Retirees and Landlords

Retirees

Tax burden: The effective rate of 1.28 % yields a median annual tax of $2,795, which is higher than the national median but still modest compared with many high‑tax states.
Exemptions: Michigan offers a Homestead Property Tax Credit and a Senior Property Tax Credit that can reduce the net tax liability for qualifying homeowners.

Landlords

Investment cost: Property‑tax expenses are a recurring component of operating costs. The examples above illustrate that a $500,000 rental property would incur roughly $6,400 in annual taxes.
Pass‑through ability: Michigan allows landlords to pass property‑tax costs to tenants through rent, subject to local lease regulations.

Both groups should evaluate the local millage rates, available credits, and the impact of property taxes on overall affordability.

Frequently Asked Questions

Question	Answer
What is the average effective Michigan property tax rate?	According to the U.S. Census Bureau’s American Community Survey (ACS) 5‑year estimates for 2023, the average effective property tax rate in Michigan is 1.28 %.
How does Michigan’s property tax rate compare to the national average?	Michigan’s rate of 1.28 % is 32.74 % higher than the national average effective rate of 0.97 %, placing the state 38th out of 52 states and territories in the ACS ranking.
Do property‑tax rates differ by location within Michigan?	Yes. Property‑tax rates are set by individual counties, municipalities, school districts, and special districts, so the total millage rate can vary significantly across the state.

All data are drawn from the U.S. Census Bureau’s American Community Survey (ACS) 5‑year estimates for 2023.

Neighboring States

Indiana

Ohio

Wisconsin