Ann Arbor property taxes are billed twice a year at roughly 52.67 mills for owner-occupied homes and 68.63 mills for non-homestead properties, with summer bills due July 31 and winter bills due December 31.1City of Ann Arbor. Property Tax Estimator2City of Ann Arbor. Property Taxes A home with a taxable value of $150,000 at the homestead rate owes about $7,979 before a 1% administration fee, and about $8,059 after. Ann Arbor does not levy a local income tax, so for most residents the property tax bill is the main local tax obligation.3Michigan Department of Treasury. Which Cities Impose an Income Tax
How the Bill Is Calculated
Michigan’s General Property Tax Act governs how every local jurisdiction in the state assesses and collects real estate taxes.4Michigan Legislature. MCL – Act 206 of 1893 – The General Property Tax Act Ann Arbor applies millage rates to each property’s taxable value, where one mill equals one dollar of tax for every $1,000 of taxable value.2City of Ann Arbor. Property Taxes After the millage is applied, the city adds a 1% administration fee to the total.1City of Ann Arbor. Property Tax Estimator
Taxable value is almost never the same as market value. Under Proposal A, taxable value can increase each year by only the lesser of 5% or the change in the Consumer Price Index, no matter how much the market has moved. When a property changes hands, the taxable value resets to the State Equalized Value, which is meant to reflect 50% of market value. That reset is the reason a bill can jump significantly the year after you buy a home, even when the millage rate hasn’t changed.
The Principal Residence Exemption
If you own and occupy your Ann Arbor home as your primary residence, you qualify for a Principal Residence Exemption that removes up to 18 mills of local school operating taxes from the bill.5Michigan Department of Treasury. Principal Residence Exemption Using current rates, a homestead property pays about 52.67 mills, while a non-homestead property pays roughly 68.63 mills.1City of Ann Arbor. Property Tax Estimator On a $150,000 taxable value, that gap works out to roughly $2,400 a year.
You claim the exemption by filing form 2368 with the city assessor’s office. If you move out or start renting the property, you’re required to rescind it. When you receive a tax bill, check whether the exemption is showing. A missing PRE means you’re paying the non-homestead rate on a home you actually live in, and the overpayment can be substantial.
Summer and Winter Due Dates
Ann Arbor splits the tax year into two billing cycles. Summer bills go out July 1 and are due without penalty by July 31. Winter bills go out December 1 and are due without penalty by December 31.2City of Ann Arbor. Property Taxes The summer bill carries the larger share because it includes city operating millage plus levies for Ann Arbor Public Schools, Washtenaw Community College, and the Washtenaw Intermediate School District. The winter bill covers county-level services and certain local special assessments.
Ways To Pay
The city’s online portal through Invoice Cloud accepts credit cards, debit cards, and electronic checks. Credit and debit payments carry a 2.85% processing fee, which on a $4,000 bill is about $114. E-checks have no additional processing or transaction fees, so they’re by far the cheapest digital option.6City of Ann Arbor. Pay Taxes Online The city doesn’t always send paper receipts for online payments, so save or print the confirmation screen.
For paper checks, Ann Arbor keeps a 24-hour drive-up drop box at East Ann Street and North Fifth Avenue and a second box inside the Ann Street entrance of City Hall at 301 East Huron Street. Mailed checks go to the City of Ann Arbor Treasurer at P.O. Box 77602, Detroit, MI 48277-0602.7City of Ann Arbor. Treasury Write your parcel number in the memo line. A check mailed on July 31 but postmarked August 1 counts as late.
What Happens if You Pay Late
Missing a deadline triggers a penalty structure that layers on quickly:
- Paid after the due date but before February 15 of the following year: a property tax administration fee of up to 1%.
- Paid on or after February 15: an additional 3% late penalty on top of the administration fee.
- Returned as delinquent: a 4% county property tax administration fee, plus interest at 1% per month on the unpaid balance.
Those charges are authorized under Section 211.44 of the General Property Tax Act.8Michigan Legislature. MCL – Section 211.44
If taxes stay unpaid, the stakes escalate on a fixed timeline. On March 1 of the year after the levy, unpaid taxes are returned to the Washtenaw County Treasurer as delinquent. One year later, the property forfeits to the county. A judicial foreclosure proceeding follows, and if the balance still isn’t paid by about March 31 of the third year after the original tax year, a court enters a foreclosure judgment and title transfers away from you.9Michigan Department of Treasury. Real Property Tax Foreclosure Timeline Michigan moves faster than many states, and once the case reaches the court stage, legal fees stack on top of the penalties and interest.
Appealing Your Assessment
If you believe your property’s assessed value is too high, the window to challenge it is narrow. The Ann Arbor Board of Review meets starting the third week of March for a four-day session.10City of Ann Arbor. Assessing Appearances are by appointment, so don’t wait until the last day to call. Bring evidence that the true cash value of your property is lower than twice the assessed value. Comparable sales for similar homes nearby are usually the most persuasive evidence for residential property. A professional appraisal strengthens the case but typically costs $300 to $700.
If the Board of Review rules against you, residential owners can appeal to the Michigan Tax Tribunal, with a filing deadline of July 31 the same year. The Board of Review step is mandatory; you can’t skip straight to the Tribunal. The Board is also the only place to correct a Principal Residence Exemption issue or challenge a property classification, so the March hearing matters even if you expect the case to continue.
Other Property Tax Relief
Beyond the PRE, Michigan offers a Homestead Property Tax Credit that reduces your state income tax bill based on property taxes paid. It’s available to homeowners and renters whose total household resources fall below a set threshold, and you claim it on your Michigan income tax return using form MI-1040CR. Seniors, disabled residents, and veterans have more generous eligibility rules and higher credit amounts. Renters can claim a portion of their rent as property taxes paid.
Because Ann Arbor has no local income tax, the city doesn’t withhold anything from your paycheck for municipal purposes and there’s no separate city return to file. Michigan’s state income tax is a flat 4.25% for the 2026 tax year.11Michigan Department of Treasury. State Individual Income Tax Rate for 2026 Tax Year Determined
Special Assessments on Your Bill
Your tax bill may include special assessments separate from regular millage. In Ann Arbor these most commonly come from sidewalk construction or repair done by the city on your property’s frontage. If the city repairs your sidewalk and you don’t pay the invoice within 120 days, the charge is added to your next tax roll with a 10% penalty.12City of Ann Arbor. Special Assessments – Code of Ordinances Special assessments carry the same lien priority as regular property taxes, which means they can feed into the delinquency and foreclosure process if ignored. When your bill arrives, read the line items. The regular millage and any special assessments are listed separately, and you owe both.