Property Tax Calculator

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When a property transfers ownership, the new Taxable Value of the property becomes what was previously shown in the property records as the State Equalized Value – or SEV.   Although these two values have equalized out in the past 2 – 3 years, depending on what township/city you reside in, the possibility still exists that the SEV is higher than the TV (Taxable Value).

Traditionally, when a lender determines your complete monthly mortgage payment – a total of the Principal mortgage amount, Interest, Taxes and Insurance (PITI for short) – they use the current amount of taxes paid on the property, as determined by the Taxable Value times the local millage rates.  The current tax bills are the amounts used for tax prorations on the HUD statement.  (Tax prorations are the amount of money you have to pay back to the seller, if the property is in a township that collects taxes on a “prepaid” basis.)  However, once the Property Transfer Affidavit is filed with the local township or city Assessing Department, this will trigger the removal of the Taxable Value “cap” so your taxes could be higher on the next tax bill.

To have a clear, accurate picture of the future annual taxes on a home, the State of Michigan has a Property Tax Estimator feature on their website.  You simply need to enter the current SEV amount, County and School District and the calculator will give you annual tax rate with and without the Principal Residence Exemption.

Click on this link to begin the process:  State of Michigan Property Tax Estimator

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