How is property assessed in Detroit?

Michigan law assesses property at 50% of true cash (market) value, called the State Equalized Value or SEV. Your taxable value cannot exceed the SEV and rises by capped amounts each year you own the home.

What is the Principal Residence Exemption?

The PRE exempts an owner-occupied home from the 18 mills of local school operating tax. It does not remove all taxes, but it meaningfully lowers the millage rate applied to your taxable value.

What millage rate does this use?

Detroit's total millage is roughly 67 mills for non-homestead property and about 49 mills for a principal residence after the PRE removes the 18 school operating mills. One mill equals $1 of tax per $1,000 of taxable value.

Why is my taxable value different from market value?

Taxable value starts at the SEV (half of market value) and then rises by the lesser of inflation or 5% each year under Proposal A. After years of ownership it is often well below the current SEV, which lowers your bill.

Does this include special assessments?

No. The estimate covers ad valorem millage only. Solid-waste fees, drainage, and other special assessments appear on the actual bill and are not modeled here.

Detroit Property Tax Estimator

This tool estimates the annual property tax on a Detroit home from its market value. Michigan assesses property at half of market value (the State Equalized Value), and Detroit’s combined millage is applied to your taxable value to produce the bill.

How it works

Michigan property tax is levied in mills, where one mill is $1 per $1,000 of taxable value. Market value is halved to get the SEV, which the tool treats as the taxable value:

SEV          = market_value * 0.5
millage      = principal_residence ? 49 : 67   (mills)
annual_tax   = taxable_value * (millage / 1000)

The Principal Residence Exemption removes the 18 mills of school operating tax for owner-occupants, which is why a homesteaded property uses roughly 49 mills instead of 67.

Example

A $200,000 home has an SEV of $100,000. As a principal residence at 49 mills the estimated tax is 100,000 * 0.049 = $4,900 per year, or about $408 set aside each month.

Notes

This is an estimate using representative Detroit millage. Your actual taxable value may be capped below the SEV after years of ownership, and special assessments are billed separately. Confirm exact figures with your assessment notice.