Royal Oak, Michigan Property Taxes
The median property tax rate in Royal Oak, MI is 2.04%, considerably higher than both the national median of 0.99% and the Michigan state median of 1.07%. With the median home value in Royal Oak at $186,580, the typical annual property tax bill reaches $3,903, exceeding the national median of $2,690. Property taxes in Royal Oak are calculated based on the tax assessed value, which typically falls below the market value due to various exemptions like the primary residence and agricultural exemptions. Understanding Royal Oak's property tax system, exploring available exemptions, and identifying opportunities for reductions can lead to significant annual savings. Whether you're in the heart of Royal Oak or another part of the city, understanding the local property tax system will benefit both homeowners and real estate investors.
Last Updated June 14, 2024
Royal Oak, Michigan Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
2.04%
Estimate Property Tax Bill
$3,806
$3,532
Ownwell’s Royal Oak Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Royal Oak with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Royal Oak 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 Royal Oak, Michigan
Property taxes in Royal Oak, Michigan, are crucial for funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Royal Oak is 2.04%, significantly higher than both the Michigan state median and the U.S. national median of 0.99%. Local government entities within Royal Oak set these rates annually, and they can vary significantly across different neighborhoods. Each year, Royal Oak 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 Royal Oak's effective property tax rate to other areas in Oakland County and the national median. For comparison, the 48067 zip code has the highest median property tax rate of 2.10%, while the 48073 zip code has the lowest median tax rate of 1.98%. Understanding how these areas compare with Royal Oak provides valuable insights into the varying tax landscape across Oakland County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Royal Oak Tax Rate
2.04%
Average Oakland County Tax Rate
1.37%
Average Michigan Tax Rate
1.07%
Average United States Tax Rate
0.99%
Property Tax Rates Across Royal Oak, Michigan
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 48067 | 1.50% | 1.68% | 2.10% | 2.53% | 3.07% |
| 48073 | 1.52% | 1.65% | 1.98% | 2.38% | 2.97% |
Source: Ownwell
Property Tax Assessment Values Across Royal Oak, Michigan
In Royal Oak, 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 Oakland 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. Assessment notices in Royal Oak 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. For instance, the highest median tax bill in Royal Oak is $4,085 in the 48067 zip code, while the lowest is $3,757 in the 48073 zip code. By understanding 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 helps identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Average Royal Oak Assessed Value
$186,580
Average Oakland County Assessed Value
$273,320
Average Michigan Assessed Value
$177,800
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Royal Oak, Michigan
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 48067 | $134,468 | $157,920 | $188,360 | $239,140 | $328,940 |
| 48073 | $111,922 | $149,115 | $185,260 | $232,050 | $282,556 |
Source: Ownwell
Property Tax Bills Across Royal Oak, Michigan
In Royal Oak, property tax bills are calculated based on the assessed value of your home, which is determined by the Oakland County Assessor's office. The assessed value is typically a percentage of the market value of your property. In Royal Oak, the median home price is $186,580. Tax rates are applied to this assessed value to determine your annual tax bill. Several factors influence your final tax bill, including local tax rates, any exemptions you may qualify for, and the specific assessment practices of Oakland County. For instance, homes in the 25th percentile of tax bills pay around $2,953 annually, while those in the 75th percentile face a tax bill of approximately $5,178. The highest median tax bill in Royal Oak is $4,085 in zip code 48067, contrasting with the lowest median tax bill of $3,757 in zip code 48073. These property taxes fund essential local services such as schools, public safety, and infrastructure, directly impacting the quality of life for Royal Oak homeowners.
Average Royal Oak Tax Bill
$3,903
Average Oakland County Tax Bill
$3,833
Average Michigan Tax Bill
$1,795
Average United States Tax Bill
$2,690
Property Tax Bills Across Royal Oak, Michigan
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 48067 | $2,482 | $3,072 | $4,085 | $5,609 | $7,964 |
| 48073 | $2,093 | $2,867 | $3,757 | $4,867 | $6,355 |
Source: Ownwell