Ann Arbor, Michigan Property Taxes
The median property tax rate in Ann Arbor, MI is 1.39%, considerably higher than both the national median of 0.99% and the Michigan state median of 1.07%. With the median home value in Ann Arbor, the typical annual property tax bill reaches $6,019, exceeding the national median of $2,690. Property taxes in Ann Arbor 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 Ann Arbor'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 Ann Arbor 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
Ann Arbor, Michigan Property Tax Bill Calculator
$100,000
$1,500,000
$3,000,000
Average Tax Rate
1.39%
Estimate Property Tax Bill
$5,802
$5,384
Ownwell’s Ann Arbor Property Tax Bill Calculator helps any homeowner, real estate investor, or potential owner estimate their annual property taxes in Ann Arbor with just two data points. By entering your property's estimated assessed value, the calculator applies the median tax rate in Ann Arbor 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 Ann Arbor, Michigan
Property taxes in Ann Arbor, Michigan, are vital in funding essential local services such as public schools, road maintenance, and emergency services. The median tax rate in Ann Arbor is 1.39%, higher than both the Michigan state median and the U.S. national median of 0.99%. Local government entities within Ann Arbor set these rates annually, and they can vary significantly across different neighborhoods. Each year, Ann Arbor 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 Ann Arbor's effective property tax rate to other counties in Michigan and the national median. For comparison, the 48104 zip code has the highest median property tax rate of 1.71%, while the 48108 zip code has the lowest median tax rate of 1.26%. Understanding how these cities compare with Ann Arbor provides valuable insights into the varying tax landscape across Washtenaw County, helping homeowners gain a clearer picture of their property tax obligations relative to neighboring areas.
Average Ann Arbor Tax Rate
1.39%
Average Washtenaw County Tax Rate
1.22%
Average Michigan Tax Rate
1.07%
Average United States Tax Rate
0.99%
Property Tax Rates Across Ann Arbor, Michigan
| Zip | 10th Percentile | 25th Percentile | Median Tax Rate | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 48103 | 0.89% | 1.13% | 1.35% | 1.74% | 2.19% |
| 48104 | 1.19% | 1.37% | 1.71% | 2.14% | 2.41% |
| 48105 | 0.87% | 1.16% | 1.47% | 1.85% | 2.22% |
| 48107 | N/A | N/A | N/A | N/A | N/A |
| 48108 | 0.95% | 1.08% | 1.26% | 1.39% | 1.88% |
Source: Ownwell
Property Tax Assessment Values Across Ann Arbor, Michigan
In Ann Arbor, 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 Washtenaw 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 Ann Arbor, 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 Ann Arbor is $417,400, with tax bills ranging from $4,244 at the 25th percentile to $12,089 at the 90th percentile. The highest median tax bill is $7,114 in zip code 48104, while the lowest is $5,138 in zip code 48108. By understanding these valuation concepts, property owners can better navigate their tax responsibilities and identify opportunities for protesting assessments or applying for exemptions to effectively manage the tax burden.
Average Ann Arbor Assessed Value
$417,400
Average Washtenaw County Assessed Value
$319,000
Average Michigan Assessed Value
$177,800
Average United States Assessed Value
$244,900
Property Tax Assessment Values Across Ann Arbor, Michigan
| Zip | 10th Percentile | 25th Percentile | Median Home Price | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 48103 | $244,400 | $335,050 | $414,900 | $525,950 | $685,600 |
| 48104 | $180,800 | $281,200 | $421,400 | $657,400 | $883,260 |
| 48105 | $228,000 | $310,800 | $443,200 | $598,600 | $861,400 |
| 48107 | N/A | N/A | N/A | N/A | N/A |
| 48108 | $209,160 | $269,600 | $387,200 | $531,100 | $660,600 |
Source: Ownwell
Property Tax Bills Across Ann Arbor, Michigan
In Ann Arbor, property tax bills are calculated based on the assessed value of the home, which is determined by the local assessor's office. The assessed value is a percentage of the property's market value, and this percentage is known as the assessment ratio. In Washtenaw County, where Ann Arbor is located, the tax rate is applied to this assessed value to determine the annual property tax bill. Several factors influence the final tax bill, including the property's location, the local tax rate, and any applicable exemptions or deductions. For instance, the median home price in Ann Arbor is $417,400, with tax bills ranging from $4,244 at the 25th percentile to $12,089 at the 90th percentile. The highest median tax bill in the area is $7,114 in the 48104 zip code, while the lowest is $5,138 in the 48108 zip code. These figures highlight the variability in tax bills, which can significantly impact homeowners' financial planning and budgeting.
Average Ann Arbor Tax Bill
$6,019
Average Washtenaw County Tax Bill
$4,022
Average Michigan Tax Bill
$1,795
Average United States Tax Bill
$2,690
Property Tax Bills Across Ann Arbor, Michigan
| Zip | 10th Percentile | 25th Percentile | Median Tax Bill | 75th Percentile | 90th Percentile |
|---|---|---|---|---|---|
| 48103 | $2,774 | $4,281 | $5,807 | $7,948 | $10,398 |
| 48104 | $3,285 | $4,604 | $7,114 | $11,735 | $16,910 |
| 48105 | $3,036 | $4,454 | $6,424 | $9,040 | $12,481 |
| 48107 | N/A | N/A | N/A | N/A | N/A |
| 48108 | $2,452 | $3,460 | $5,138 | $6,897 | $8,476 |
Source: Ownwell