Resource Center: deep-dive tax education for Southeast Michigan buyers, part of the Resource Center municipal library.
Municipal Resources · Property TaxesProposal A protects long-time owners with a tax cap, but that cap resets when you buy.
Uncapping is the number-one property tax surprise for Michigan buyers. The tax bill on Zillow almost never reflects what you will pay.
Michigan's Proposal A (1994) limits annual increases in taxable value to 5% or the rate of inflation, whichever is lower. Long-time owners benefit from a taxable value that often sits well below current market value.
That cap is a gift to existing homeowners, and a trap for buyers who assume the seller's bill is representative.
When property ownership transfers, the cap is removed. In the tax year following your purchase, taxable value resets to the State Equalized Value (SEV): typically about half of assessed market value.
Seller owned 20 years. Taxable value: $95,000. SEV today: $175,000. You buy at $350,000.
Your first full-year taxable value ≈ $175,000, not $95,000.
Listing sites still show the seller's $3,800 bill. Your reality may be closer to $7,500.
Compare jurisdictions in our City vs Township Taxes guide.
When a Michigan property sells, the Proposal A cap is removed and taxable value resets to SEV in the following tax year.
Listing sites show the current owner's capped bill, not the uncapped bill a new buyer will pay.
Use purchase price ÷ 2 as taxable value, multiply by total mills ÷ 1,000, then adjust for PRE if applicable.
Three related resources, a download, and a tool, plus a clear next step back into the Hearts to Homes ecosystem.
AV, SEV, taxable value, and millage rates explained.
Tax ClusterFile the homestead exemption after you close.
MunicipalWhy jurisdiction changes your millage stack.
Free DownloadBudget for taxes on new builds before you sign.
Interactive ToolCompare communities before you budget by address.
Not sure where to start? Visit the Resource Center, take the Find Your Fit Quiz, or ask us a question.
We built the Resource Center so you never have to guess. When you are ready for a real conversation about your specific situation, we are here.