Chatham, Michigan Property Taxes
The median property tax rate in Chatham, MI is 0.72%, which is notably lower than both the national median of 0.99% and the Michigan state median of 1.07%. With a median home value of $84,400 in Chatham, the typical annual property tax bill amounts to $605, significantly under the national median of $2,690. Property taxes in Chatham are calculated based on the tax assessed value, which often falls below the market value due to various exemptions such as the primary residence and agricultural exemptions. Understanding Chatham's property tax system, exploring available exemptions, and identifying opportunities for reductions can lead to substantial annual savings. Whether you're in the heart of Chatham or another part of the city, comprehending the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Chatham, Michigan Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
0.72%
Estimate Property Tax Bill
$608
Ownwell’s Chatham Property Tax Bill Calculator enables homeowners, real estate investors, and potential buyers to estimate their annual property taxes in Chatham with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Chatham to estimate your property tax bill. This insightful tool helps you understand potential tax liabilities. If you’re interested in seeing trends on a neighborhood level, scroll down to find more localized information. Your property’s assessed value is the value assigned by the county for property tax calculations, accounting for any exemptions that may apply.
Property Tax Rates Across Chatham, Michigan
Property taxes in Chatham, Michigan, are vital in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Chatham is 0.72%, lower than the U.S. national median of 0.99%. Local government entities within Chatham set these rates annually, and they can vary significantly across different neighborhoods. Each year, Chatham estimates its required budget to maintain services for the upcoming fiscal year, then divides this budget by the total value of all taxable property within the jurisdiction to calculate the property tax rate. While tax rates and budgets are influenced by laws and voter input, this calculation forms the basis of setting property tax rates. The data below compares Chatham's effective property tax rate to other counties in Michigan and the national median. For comparison, the 49816 zip code has the highest median property tax rate of 0.72%, while the same 49816 zip code also has the lowest median tax rate of 0.72%. Understanding how these cities compare with Chatham provides valuable insights into the varying tax landscape across Alger County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Chatham Tax Rate
0.72%
Average Alger County Tax Rate
0.75%
Average Michigan Tax Rate
1.07%
Average United States Tax Rate
0.99%
Property Tax Rates Across Chatham, Michigan
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 49816 | 0.47% | 0.60% | 0.72% | 0.78% | 0.94% |
Source: Ownwell
Property Tax Assessment Values Across Chatham, Michigan
In Chatham, Michigan, understanding the difference between "market value" and "assessed value" is crucial for comprehending property taxes. The market value is the price a willing buyer would pay a willing seller in an open and competitive market, influenced by factors like location, property condition, and economic trends. This value is estimated by the Alger County Appraisal District for tax purposes. In contrast, the assessed value is the market value minus any applicable exemptions or limits based on local laws and available programs. The assessed value is then used to calculate your property taxes by multiplying it by the combined tax rates of all relevant taxing entities. In Chatham, assessment notices are typically mailed out in the spring, usually by mid-April. These notices provide homeowners with both the market and assessed values, along with an estimate of the annual property tax bill. The median home price in Chatham is $84,400, with tax bills ranging from $341 at the 25th percentile to $1,287 at the 90th percentile. The highest and lowest median tax bills in the area are both $605, found in zip code 49816. By understanding the distinction between these valuation concepts, property owners can better navigate their tax responsibilities and comprehend how their property taxes are determined. Being aware of these valuation processes in Chatham helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Average Chatham Assessed Value
$84,400
Average Alger County Assessed Value
$94,600
Average Michigan Assessed Value
$177,800
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Chatham, Michigan
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 49816 | $29,360 | $50,300 | $84,400 | $129,600 | $188,440 |
Source: Ownwell
Property Tax Bills Across Chatham, Michigan
In Chatham, property tax bills are calculated by multiplying the assessed value of a home by the local tax rate. The assessed value is typically a percentage of the property's market value, which in Chatham is influenced by various factors, including location, property size, and market conditions. The median home price in Chatham is $84,400, which serves as a baseline for determining tax bills. Homeowners in Chatham can expect their property tax bills to vary significantly. For instance, the 25th percentile tax bill is $341, while the 75th percentile tax bill is $960, and the 90th percentile tax bill reaches $1287. These figures indicate a range of potential tax liabilities, reflecting differences in property values and individual assessments. Compared to the national median property tax rate of 0.99%, Chatham's property tax landscape can be considered moderate. Homeowners should be aware of these factors as they directly impact their annual financial obligations and overall cost of homeownership.
Average Chatham Tax Bill
$605
Average Alger County Tax Bill
$783
Average Michigan Tax Bill
$1,795
Average United States Tax Bill
$2,690
Property Tax Bills Across Chatham, Michigan
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 49816 | $215 | $341 | $605 | $960 | $1,287 |
Source: Ownwell