Michigan taxable value calculator.

Why Michigan has three values

Michigan property carries a true cash value, a state equalized value and a taxable value. MCL 211.27a(1) says property is assessed at 50 percent of its true cash value, so SEV is half of market value after equalization. Your tax bill, however, is figured on taxable value, which section 27a(2) limits. For taxes levied in 1995 and each year after, taxable value is the lesser of two numbers: the property’s taxable value in the preceding year, minus any losses, multiplied by the lesser of 1.05 or the inflation rate, plus all additions; or the property’s current SEV.

The inflation rate

MCL 211.34d defines the inflation rate as the ratio of the general price level for the state fiscal year ending in the calendar year immediately preceding the current year to the general price level for the state fiscal year ending in the year before that. That produces a multiplier such as 1.031. The tool asks for it as a percent change so you can type 3.1 and have it become 1.031. We could not open the Michigan Department of Treasury pages because the site returned an access error to an automated request, so the tool does not state any year’s rate. Use the one your assessor or the Department of Treasury gives you, and if the ratio is above 1.05 the cap of 1.05 applies, as the tool shows.

What resets taxable value

Section 27a(3) says that on a transfer of ownership after 1994, the property’s taxable value for the calendar year following the year of the transfer is the property’s SEV for that year. Subsection (4) says that after that adjustment, later increases are again limited by the cap until the next transfer. Subsection (6) defines transfer of ownership as the conveyance of title to or a present interest in property, including its beneficial use, if the value is substantially equal to the value of the fee interest, and lists examples such as a conveyance by deed, a land contract, and certain conveyances to a trust. Some conveyances to a trust are not transfers, for example when the settlor or the settlor’s spouse conveys property and is the sole present beneficiary. The statute lists more exceptions, so check the text for your situation.

Worked example

Last year’s taxable value was $100,000, there are no losses or additions, the inflation rate is 3.1 percent and this year’s SEV is $140,000. The growth factor is the lesser of 1.05 and 1.031, which is 1.031. The capped figure is $100,000 times 1.031, or $103,100. SEV is $140,000, the lesser of the two is $103,100, so taxable value is $103,100 and the cap is holding it $36,900 below SEV. At 40 mills that would be $4,124 in tax instead of $5,600. If the home sells and the new owner is assessed for the following year, taxable value jumps to the SEV, here $140,000, and the cap restarts from that figure.

Using the result

If you enter the millage rate from your bill, the tool gives an estimated tax on taxable value and the amount it would be on SEV. The real bill depends on the mix of millages for your taxing units, exemptions such as the principal residence exemption, and any special assessments, none of which are modeled here. Use the result to understand a change in a notice or to see how large the reset would be if you are buying a home from a long-time owner.

Limits of this page

This applies MCL 211.27a(2) and (3) to the numbers you enter. It does not model the separate rules for personal property, qualified agricultural property, the treatment of additions and losses in detail, or board of review corrections. We read the Michigan Legislature’s text of the Compiled Laws (complete through PA 114 of 2026) on November 2, 2026.

Sources

Sources opened and read November 2, 2026.

• Michigan Legislature: MCL 211.27a, taxable value (read November 2, 2026)
• Michigan Legislature: MCL 211.34d, definition of inflation rate (read November 2, 2026)