California vs Michigan
California
Property Tax Comparison: California vs. Michigan
According to the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates), California and Michigan differ markedly in how property taxes are levied relative to home values and household incomes. California’s effective property tax rate is lower, while Michigan’s median home values are less than half of California’s. The following tables and analysis present the key metrics side‑by‑side.
Side‑by‑Side Comparison Table
| Metric | California | Michigan |
|---|---|---|
| Effective property tax rate | 0.71 % | 1.28 % |
| Median home value | $695,400 | $217,600 |
| Median annual property tax | $4,926 | $2,795 |
| Property tax on a $250,000 home | $1,771 | $3,211 |
| Property tax on a $500,000 home | $3,542 | $6,423 |
| Median household income | $96,334 | $71,149 |
| California property tax | ||
| Michigan property tax |
Which State “Wins” on Property Tax Burden?
Based on the most recent ACS estimates, California records the lower effective property tax rate (0.71 % vs. 1.28 %).
- Rate difference: 0.58 percentage points, representing a 44.85 % lower rate in California.
- Annual tax on a $250,000 home: California $1,771 vs. Michigan $3,211 – a $1,440 advantage for California.
- Annual tax on a $500,000 home: California $3,542 vs. Michigan $6,423 – a $2,881 advantage for California.
The lower rate in California translates into smaller yearly tax bills for homes at the same price point, even though California’s median home values are considerably higher.
Who Might Find This Comparison Most Relevant?
| Audience | Relevance of the Comparison |
|---|---|
| Current or prospective homeowners | Understanding the ongoing tax cost of owning a home at different price levels helps with budgeting and affordability analysis. |
| Retirees or fixed‑income households | Lower property tax rates can reduce the cash flow required to maintain homeownership, which is especially important when income is static. |
| Real‑estate investors | The tax rate differential influences after‑tax returns on rental or resale properties across the two states. |
| Policy analysts or researchers | The data illustrate how state‑level tax structures interact with median home values and household incomes. |
Summary
- California offers a lower effective property tax rate (0.71 %) and consequently lower annual taxes on comparable home values.
- Michigan has a higher rate (1.28 %) but also lower median home values and household incomes, which can affect overall affordability.
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). The comparison is strictly factual and does not incorporate qualitative factors such as local services, school quality, or cost‑of‑living differences beyond the metrics listed above.
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Discover how property taxes compare across all states in our comprehensive comparison guide.
Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.