As Michigan lawmakers consider cutting and limiting property taxes, it’s worth checking out some facts and trends about Michigan’s property tax.
State and local governments collected $21.6 billion from property taxes in 2025, up from $20.3 billion in 2024, a 3% increase above the rate of inflation.
The property tax is the largest single tax state and local governments assess. The next closest is the personal income tax, which is expected to collect $13.6 billion in the current fiscal year. Next closest is the sales and use tax, which collects $13.2 billion. The corporate income tax yields only $2.8 billion.
Property tax collections have increased faster than inflation for more than a decade. The tax collected $12.8 billion in 2013. It raised 22% more in 2025, when adjusted for inflation.
The property tax is largely levied at the local level: $9.3 billion in 2025 for schools, $3.6 billion for counties, and $5.6 billion for cities, villages and townships. The state also levies six mills of property taxes, and this raised $3.0 billion.
The property tax in Michigan is higher than it is in the typical state. Property owners’ rates are 27% higher than the national average, and the 14th highest in the country.
It is unsurprising that the property tax has garnered so much interest from lawmakers. It’s the largest tax, levied at high rates, and has grown substantially over the past decade. Lawmakers have options to equitably reduce this tax.
