Three American cities share the name Troy, and the taxes each one charges its residents are not the same. If you live in or are moving to a city called Troy, the taxes you owe depend entirely on which state you’re in. Troy, Michigan and Troy, New York bill property taxes but no local income tax. Troy, Ohio charges a 1.75% municipal income tax on top of county-collected property taxes. Rates, deadlines, exemptions, and penalties differ enough that guidance written for one Troy can be wrong for another.
Troy, Michigan: Property Tax Only
Troy, Michigan sends property tax bills twice a year. The summer bill goes out around July 1 and is due by September 1. The winter bill goes out around December 1 and is due by February 14.1City of Troy, Michigan. City Treasurer’s Office Together they fund the city, Oakland County, schools, and special authorities.
The total millage rate depends on your school district. For a home in the Troy School District claiming the Principal Residence Exemption, the combined rate runs about 36 mills.2Michigan Department of Treasury. Total Property Tax Rates in Michigan 2025 One mill equals one dollar per $1,000 of taxable value. A home with a $150,000 taxable value at 36 mills would owe roughly $5,400 for the year across both bills.
Taxable value is not the same as market value. The assessor sets your assessed value at 50% of true cash value, but under Proposal A (a 1994 constitutional amendment) your taxable value can only rise each year by inflation or 5%, whichever is less, as long as you haven’t sold the home or added onto it.3Oakland County, Michigan. Real and Personal Property Information When a property sells, the cap resets. Buyers in Troy should expect their first full-year bill to be noticeably higher than what the seller was paying.
Principal Residence Exemption
The Principal Residence Exemption (PRE) removes up to 18 mills of local school operating tax from your bill. The property must be your true, fixed, and permanent home. You claim it by filing an affidavit with the local assessor, and it stays in effect until you move out or stop using the property as your primary residence.4Michigan Department of Treasury. Principal Residence Exemption Second homes, rentals, and vacation houses don’t qualify. In Troy, the difference between a homestead and a non-homestead bill can easily exceed $2,500 a year.
Appealing Your Assessment
If you think your assessed or taxable value is wrong, you go first to the local Board of Review, which begins hearings on the second Monday in March. You cannot escalate to the Michigan Tax Tribunal without appearing at the Board first.5City of East Grand Rapids, Michigan. Assessment / Taxable Value Appeal Process The useful evidence is recent comparable sales showing a lower market value. An appraisal helps but isn’t required. Arguments about the bill being too high, or about the size of a year-over-year increase, don’t move the Board. It only looks at whether the number reflects market value.
Troy, New York: Property Tax Only
Troy, New York bills city and county property taxes in two installments, with the first due in January and the second in July.6City of Troy, New York. Tax Bill School taxes are billed separately on their own cycle. The city’s 2026 budget raises the tax rate by 2.29%, which the city estimates at about an extra $4.64 per month on a home assessed at $150,000.7City of Troy, New York. Mayor Mantello Issues Proposed 2026 Budget for the City of Troy
STAR Reduces Your School Tax
New York’s STAR program reduces school tax bills for eligible homeowners. Basic STAR, for owners still receiving the exemption, has a $250,000 combined household income cap; new applicants must register for the STAR credit instead, with income capped at $500,000. Enhanced STAR gives a larger reduction to owners 65 or older with combined income of $110,750 or less. Eligibility for the 2026 benefit year is based on 2024 federal returns.8New York Department of Taxation and Finance. STAR Eligibility If you bought your Troy home after 2015, the exemption is not available to you; you register for the STAR credit through the state tax department instead.
Troy, Ohio: 1.75% Municipal Income Tax
Troy, Ohio charges a 1.75% income tax on wages, salaries, commissions, and net business profits.9City of Troy, Ohio. Income Tax FAQs Residents pay on all earned income no matter where they work. Nonresidents pay on income earned while physically working inside Troy. Ohio Revised Code Chapter 718 is the state law authorizing municipalities to collect this tax.10Ohio Legislative Service Commission. Ohio Revised Code 718.04 – Authority for Tax on Income and Withholding Tax
Taxable income under the municipal tax includes wages from any source, distributive shares of pass-through entity profits, and lottery and gambling winnings.11Ohio Legislative Service Commission. Ohio Revised Code Chapter 718 – Municipal Income Taxes Businesses operating in Troy — corporations, partnerships, LLCs, or sole proprietors — owe the same 1.75% on net profits attributable to the city.9City of Troy, Ohio. Income Tax FAQs
Credit If You Work in Another Ohio City
A Troy resident who works in another Ohio city with its own income tax gets a credit against Troy liability, up to Troy’s 1.75% rate. If the workplace city charges 1.75% or more and withholds it properly, you owe Troy nothing extra on that income. If the workplace city’s rate is lower, say 1%, you owe Troy the 0.75% difference.9City of Troy, Ohio. Income Tax FAQs The credit covers only what you actually paid elsewhere, not what you might have paid.
Quarterly Estimated Payments
If you expect your Troy income tax liability to exceed $200 for the year after withholding, you have to make quarterly estimated payments.9City of Troy, Ohio. Income Tax FAQs This mostly affects self-employed residents, business owners, and anyone whose income isn’t subject to employer withholding. The quarterly schedule generally tracks the federal April-June-September-January pattern. The city’s income tax office recommends filing the annual return before April 1 to avoid last-week lines.
A Boundary Worth Knowing
Residents of Troy, Michigan and Troy, New York do not pay a city-level income tax. Michigan law authorizes only 24 specific cities to levy one, and Troy is not among them.12Michigan Department of Treasury. Which Cities Impose an Income Tax? New York doesn’t grant cities the power to impose a separate municipal income tax at all. If you moved to either Troy from a city that did collect one, that obligation ends.
Penalties If You’re Late
Troy, Michigan
Delinquent property taxes accrue interest at 1% per month on the unpaid balance, plus a 4% county property tax administration fee.13Michigan Legislature. Michigan Compiled Laws – Act 206 of 1893 – Collecting of Taxes Charges begin the day after September 1 or February 14. Unpaid taxes are eventually returned as delinquent to the county treasurer, and after a statutory period, the property can face forfeiture and foreclosure.14Michigan Legislature. Michigan Compiled Laws 211.78 The process is slow, but once it starts, undoing it gets expensive.
Troy, New York
Late property tax payments accrue interest at 1% per month, or any fraction of a month, under state law.15New York Department of Taxation and Finance. Interest Rates on Late Payment of Property Taxes Missing both installments on a $4,000 bill for six months would add $240 in interest alone, before any additional fees. Because the bill is split in two, missing one installment starts the clock on the full installment amount.
Troy, Ohio
The penalty for filing a municipal income tax return late is up to $25 per month, or part of a month, that the return remains unfiled. Ohio law requires the penalty to be waived the first time, as long as you eventually file.16Ohio Legislative Service Commission. Ohio Revised Code 718.27 That forgiveness is one-time. Interest also runs on any unpaid tax at a rate set by the Ohio Tax Commissioner, which adjusts periodically.
If You Run a Business
Businesses in Troy, Michigan and Troy, New York may owe tax on tangible personal property, including equipment, furniture, computers, and machinery. Michigan requires an annual personal property statement filed with the local assessor listing taxable assets and acquisition costs; the assessor applies a depreciation schedule and the same millage rates as real property. Small businesses below a statutory threshold may qualify for an exemption, but you still have to file to claim it. Skip the filing and the assessor will estimate your value, usually not in your favor.
Troy, Ohio does not have a separate municipal personal property tax. The 1.75% income tax on net business profits captures business income regardless of the equipment behind it.