Michigan variant. This is a Michigan-specific version of the Property Tax Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Property Tax Calculator.
Michigan's effective property tax rate of 1.38% means the owner of a median $240,000 home pays roughly $3,312 per year - a figure that varies widely by state.
How Michigan property tax is calculated
Property tax = assessed value × local millage rate. The 1.38% effective rate shown here is the statewide average of tax paid relative to market value, which smooths over county-by-county differences.
On the $240,000 Michigan median home, that works out to about $3,312/year or $276/month - often escrowed into your mortgage payment.
About taxes and housing in Michigan
Michigan applies a flat individual income tax, and some cities levy an additional local income tax.
Michigan has above-average property taxes but caps annual taxable value increases on a primary residence to the rate of inflation under Proposal A.
Michigan is the historic heart of the U.S. auto industry, with Detroit's manufacturing base complemented by furniture and agriculture statewide.
Worked example: tax on a $240,000 home
$240,000 × 1.38% = $3,312 per year. A $500,000 home in Michigan would owe about $6,900 annually at the same effective rate.
Quick reference
- State income tax: Flat 4.25%
- State sales tax: 6% (plus 0.00% avg local)
- Median home value: $240,000
- Median household income: $68,505
- Effective property tax rate: 1.38%
- Avg auto insurance: $2,348/yr
Frequently Asked Questions
What is the property tax rate in Michigan?
Michigan's effective property tax rate averages 1.38% of market value per year.
How much property tax on a $240,000 home in Michigan?
About $3,312 per year at the 1.38% effective rate.