Michigan Property Taxes After You Buy

General information, not tax advice. Every home is different. For your exact numbers, check with the city or township assessor where the home is, or a tax professional.

Why the seller's tax bill isn't your tax bill

In Michigan, a home's taxes are based on its taxable value, not its price. Under Proposal A (1994), while someone owns a home, its taxable value can only rise each year by inflation or 5%, whichever is lower. For 2026 the State Tax Commission set that multiplier at 1.027 (2.7%). After many years of ownership, a home's taxable value can be far below its market value.

When a home sells, that limit is lifted ("uncapped"). In the year after the sale, the taxable value resets to the home's State Equalized Value (SEV), and the cap starts again the year after that. So your taxes can be noticeably higher than the seller's.

The three numbers on your assessment notice

  • Assessed value / SEV: set to 50% of the home's true cash value (market value), then reviewed by the county and state.
  • Capped value: last year's taxable value × the inflation multiplier (never more than 5%), adjusted for additions or losses.
  • Taxable value: the lower of SEV and capped value. Your millage rates are applied to this number. In the year after a sale, taxable value equals SEV.

The Principal Residence Exemption (PRE): don't miss it

If the home will be your primary residence, file a Principal Residence Exemption Affidavit (Form 2368) with the local assessor. It exempts the home from up to 18 mills of local school operating taxes.

  • File on or before June 1 to have it apply starting with that year's summer tax bill.
  • File June 2 through November 1 to have it apply starting with the winter bill.
  • Many buyers sign Form 2368 at closing. Ask your title company to confirm it was filed.
  • If you move out, the owner must file a Request to Rescind (Form 2602) within 90 days.

File your Property Transfer Affidavit

The buyer files a Property Transfer Affidavit (Form 2766) with the local assessor within 45 days of the transfer. For residential property, late filing carries a penalty of $5 per day, up to $200. Your title company often handles this.

When the bills come

Most Michigan communities send two property tax bills a year, a summer bill (typically July) and a winter bill (typically December). Which taxes are on each bill, and exactly when they're due, depend on the city or township, so check the local treasurer's website.

How we help buyers

Before you make an offer, we pull the home's current taxable value and SEV and estimate what the taxes could look like after the sale, so you're not surprised by the first bill. Call or text (734) 259-7949, or see moving to Southeast Michigan.

Property tax questions

Will my property taxes be the same as the seller's?

Usually not. In Michigan, a home's taxable value is capped while someone owns it, and the cap is lifted when it sells. In the year after you buy, taxable value resets to the State Equalized Value (half of market value), so your taxes can be higher than the seller's. Your local assessor can confirm the numbers for a specific home.

What is "uncapping" in Michigan?

Uncapping is when a home's taxable value resets after a transfer of ownership. Under Proposal A, taxable value can rise each year only by inflation or 5% (2.7% for 2026). After a sale, the next year's taxable value equals the State Equalized Value, and the cap starts again the following year.

What is the Principal Residence Exemption and when do I file it?

It exempts your primary home from up to 18 mills of local school operating taxes. File Form 2368 with the local assessor by June 1 to have it apply starting with that year's summer bill, or June 2 through November 1 to have it apply starting with the winter bill.

Do I need to file anything after closing?

Yes. The buyer must file a Property Transfer Affidavit (Form 2766) with the local assessor within 45 days; residential late fees are $5 a day up to $200. If the home is your primary residence, also make sure Form 2368 (the Principal Residence Exemption) is filed.

Sources

Last reviewed November 2026.