10/16/2025
This is great info to keep in mind for anyone whoโs recently purchased or is thinking about buying in Michigan!
๐ ๐ก๐ฒ๐ ๐๐ผ๐บ๐ฒ๐ผ๐๐ป๐ฒ๐ฟ ๐๐ฒ๐ฎ๐ฑ๐-๐จ๐ฝ!
This time of year, we hear from new homeowners who find themselves with an unexpected escrow shortage โ usually because their mortgage company based taxes on the sellerโs bill.
๐ก ๐๐ฒ๐ฟ๐ฒโ๐ ๐ช๐ต๐ ๐๐ ๐๐ฎ๐ฝ๐ฝ๐ฒ๐ป๐
When you buy a home in Michigan, your property taxes may go up the following year due to something called โuncapping.โ
โข ๐๐ป๐ผ๐ ๐๐ต๐ฒ ๐ก๐๐บ๐ฏ๐ฒ๐ฟ๐
โฆ SEV (State Equalized Value): 50% of market value
โฆ Taxable Value (TXV): The number used to calculate your property taxes
โข ๐ง๐ต๐ฒ ๐จ๐ป๐ฐ๐ฎ๐ฝ๐ฝ๐ถ๐ป๐ด ๐ฅ๐๐น๐ฒ
โฆ Taxable value normally increases only by inflation or 5% (whichever is lower).
โฆ But when a property is sold, the taxable value resets to the SEV the next year โ sometimes leading to a noticeable jump in taxes.
โข ๐ฆ๐ฎ๐บ๐ฒ ๐๐ผ๐๐๐ฒ, ๐ก๐ฒ๐ ๐ข๐๐ป๐ฒ๐ฟ, ๐๐ถ๐ณ๐ณ๐ฒ๐ฟ๐ฒ๐ป๐ ๐ง๐ฎ๐
๐๐ถ๐น๐น!
Even if the SEV stays the same, your tax bill might not look like the sellerโs.
โ
๐ฆ๐บ๐ฎ๐ฟ๐ ๐ ๐ผ๐๐ฒ: Before buying, check the real numbers using the State of Michigan Property Tax Estimator or call the local assessor's office and ask what the new taxes will be:
๐ michigan.gov/taxes/property/estimator
