Montgomery, Michigan Property Taxes
The median property tax rate in Montgomery, Michigan is 0.41%, significantly lower than both the national median of 0.99% and the Michigan state median of 1.07%. With a median home value in Montgomery of $100,732, the typical annual property tax bill is around $429, well below the national median of $2,690. Property taxes in Montgomery are based on the tax assessed value, which is often less than the market value due to various exemptions, such as those for primary residences and agricultural properties. Understanding Montgomery'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 Montgomery or another part of the city, grasping the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Montgomery, Michigan Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
0.41%
Estimate Property Tax Bill
$413
Ownwell’s Montgomery Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Montgomery with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Montgomery 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 Montgomery, Michigan
Property taxes in Montgomery, Michigan, are crucial in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Montgomery is 0.41%, significantly lower than both the Michigan state median and the U.S. national median of 0.99%. Local government entities within Montgomery set these rates annually, and they can vary significantly across different neighborhoods. Each year, Montgomery 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 Montgomery's effective property tax rate to other counties in Michigan and the national median. For comparison, the 49255 zip code has the highest median property tax rate of 0.41%, while the same 49255 zip code also has the lowest median tax rate of 0.41%. Understanding how these cities compare with Montgomery provides valuable insights into the varying tax landscape across Hillsdale County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Montgomery Tax Rate
0.41%
Average Hillsdale County Tax Rate
0.41%
Average Michigan Tax Rate
1.07%
Average United States Tax Rate
0.99%
Property Tax Rates Across Montgomery, Michigan
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 49255 | 0.23% | 0.31% | 0.41% | 0.65% | 0.84% |
Source: Ownwell
Property Tax Assessment Values Across Montgomery, Michigan
In Montgomery, 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 local 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 Montgomery, 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. 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 Montgomery helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden. For instance, the highest median tax bill in the area is $429 in zip code 49255, while the lowest is also $429 in the same zip code, reflecting a need for careful review of assessments.
Average Montgomery Assessed Value
$100,732
Average Hillsdale County Assessed Value
$141,139
Average Michigan Assessed Value
$177,800
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Montgomery, Michigan
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 49255 | $28,130 | $50,235 | $100,732 | $220,786 | $344,637 |
Source: Ownwell
Property Tax Bills Across Montgomery, Michigan
In Montgomery, Hillsdale County, property tax bills are calculated based on the assessed value of a home, which is determined by local assessors. The median home price in this area is $100,732. Property taxes are then computed by applying the local tax rate to this assessed value. Homeowners in Montgomery can expect their property tax bills to vary significantly depending on several factors, including the precise location within the city and the specific characteristics of their property. For instance, tax bills in Montgomery range from the 25th percentile at $278 to the 75th percentile at $764, with the 90th percentile reaching $1,213. This variance means that while some homeowners might find their tax bills manageable, others could face higher financial burdens. The highest and lowest median tax bills in Montgomery are both recorded at $429 in the zip code 49255, reflecting a relatively uniform tax landscape in certain areas. Understanding these factors can help homeowners better anticipate their annual property tax obligations.
Average Montgomery Tax Bill
$429
Average Hillsdale County Tax Bill
$685
Average Michigan Tax Bill
$1,795
Average United States Tax Bill
$2,690
Property Tax Bills Across Montgomery, Michigan
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 49255 | $132 | $278 | $429 | $764 | $1,213 |
Source: Ownwell