Most Michigan homeowners get two property tax bills a year: one in summer and one in winter. They are not two halves of one bill. Each one carries its own set of taxes, with its own due date and its own late charges. Here is how the two fit together, from the state's General Property Tax Act.
The summer bill
Summer taxes become a lien on the property on July 1. Interest is added to summer taxes paid after September 14. When September 14 falls on a Saturday, Sunday or legal holiday, the deadline moves to the next business day.
The winter bill
Winter taxes become a lien on December 1. The treasurer may add a property tax administration fee of up to 1% of the bill. Winter taxes paid after February 14 can carry a late penalty charge of 3% of the tax. The fee and the late charge apply only where the city or township board has approved them, so check your bill for what applies where you live.
Which taxes go on which bill
The split differs from community to community. A county can levy its taxes in the summer, and the treasurer who collects the 6-mill state education tax also collects the summer levy. Each bill lists every millage on it line by line, with the authority that levies it. The quickest way to see where your money goes is to read the two bills side by side.
March 1: unpaid taxes go to the county
Taxes from the year before that are still unpaid on March 1 are returned delinquent to the county treasurer. From then on, the county adds a 4% administration fee and interest of 1% per month on the unpaid tax, counted from when it became delinquent. Unpaid taxes can eventually lead to foreclosure, so call the county treasurer early if a bill is a problem.
Deferring the summer bill
Some homeowners can put off the summer bill until February without interest or penalty. Under Michigan law, the home must be your principal residence, your total household income for the year before must be $40,000 or less, and you must meet one of these:
- you are 62 or older, or the surviving spouse of someone who was 62 or older;
- you are totally and permanently disabled, blind, paraplegic or quadriplegic;
- you are an eligible serviceperson, veteran, or the surviving spouse of one.
File the deferment with your city or township treasurer by September 15, or by the date the summer taxes would otherwise start to carry interest, whichever is later. The due date doesn't move unless you file.
The Principal Residence Exemption and the two bills
The Principal Residence Exemption (PRE) exempts your home from up to 18 mills of local school operating taxes. When you file decides which bill it reaches first:
- filed on or before June 1, it applies to that year's summer levy and every levy after it;
- filed on or before November 1, it applies to that year's winter levy and every levy after it.
It doesn't apply on its own: you file Form 2368 with your city or township.
Buying or selling a home
December 31 is tax day in Michigan: a home's taxable status for the next year is set as of that date. That is also when a home that sold during the year "uncaps", which is why a buyer's taxes can be much higher than the seller's. Our guide to property tax uncapping shows how to estimate your bill before you buy.
At closing, the purchase agreement says how the year's taxes are split between buyer and seller. The title company works out each side's share on the settlement statement. Before you sign, ask which bills are already paid, which are open, and which will come due soon after closing, so neither side is surprised in July or December.
If you are looking for a home, tell us the cities and price range and your Raven agent will pull the tax records and bills for every home you consider. If you are selling, we can walk you through what your share of the year's taxes will be.
