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Michigan · MCL 211.27a, 211.27b, 211.7ccMichigan property tax after buying: uncapping, the 45-day affidavit and the PRE

In Michigan a home's taxable value can rise each year by no more than the lower of 5% or inflation, so a long-time owner's taxable value is often far below the assessed value – the state equalized value, which is 50% of true cash value (MCL 211.27a(1)–(2)). When ownership transfers, the cap comes off: for the year after the transfer the taxable value becomes the state equalized value, and the cap applies again from there (MCL 211.27a(3)–(4)). The buyer must notify the assessor on the Property Transfer Affidavit within 45 days of the transfer; a late filing costs $5 a day after the 45 days, up to $200 for a principal residence and $4,000 for other property (MCL 211.27a(10), 211.27b(1)(d)). To keep school operating taxes lower on a home you live in, file the principal residence exemption affidavit by June 1 for the summer levy or November 1 for the winter levy (MCL 211.7cc).

The rules

  1. Capped taxable value

    Increases limited to the lower of 1.05 or the inflation rate, plus additions (MCL 211.27a(2)).

  2. Assessed value

    State equalized value – 50% of true cash value (MCL 211.27a(1)).

  3. Uncapping

    Year after a transfer: taxable value = state equalized value; then capped again (MCL 211.27a(3)–(4)).

  4. Property Transfer Affidavit

    Buyer notifies the assessing office within 45 days of the transfer (MCL 211.27a(10)).

  5. Late penalty

    $5 a day after 45 days, up to $200 for a principal residence, $4,000 otherwise (MCL 211.27b(1)(d)).

  6. Principal residence exemption

    Affidavit by June 1 (summer levy) or November 1 (winter levy) (MCL 211.7cc).

Example

  • Seller's taxable value $90,000; state equalized value $150,000 (true cash value about $300,000).
  • The year after the sale, the buyer's taxable value is $150,000 – the tax base rises by two-thirds before millage.
  • From then on it can rise only by the lower of 5% or inflation until the next transfer.

Post-closing tasks for the buyer

  • Property Transfer Affidavit to the local assessor within 45 days.
  • Principal residence exemption affidavit by June 1 or November 1.
  • Budget taxes from the state equalized value, not the seller's taxable value.

Questions Michigan buyers ask

Why do Michigan property taxes go up after buying a house?

The taxable value is uncapped the year after a transfer and resets to the state equalized value (MCL 211.27a(3)); the seller's capped value does not carry over.

When is the Michigan Property Transfer Affidavit due?

Within 45 days of the transfer; after that the penalty is $5 a day, up to $200 for a principal residence (MCL 211.27b).

When do I file the Michigan principal residence exemption?

By June 1 for the summer tax levy or by November 1 for the winter levy (MCL 211.7cc).

Related guides

Add the 45-day Property Transfer Affidavit and the principal residence exemption to the post-closing checklist as tasks with an owner and due date in ClosingCode.

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Source: Michigan Compiled Laws 211.27a, 211.27b and 211.7cc (legislature.mi.gov, read October 25, 2026).

General information, not legal or tax advice. ClosingCode is software; it is not a law firm or brokerage. This guide is not a substitute for the advice or services of an attorney.