In Detroit, property tax is calculated based on the Taxable Value of the property, which is determined by the city assessor. This value is then multiplied by the local millage rate to determine your annual tax obligation.
Key Tax Components
| Category | Description |
| :--- | :--- |
| Assessed Value | 50% of the property's estimated market value. |
| Taxable Value | The lower of the Assessed Value or the Capped Value. |
| Millage Rate | The total tax rate set by local and state jurisdictions. |
For 1963 25th St, the current annual tax amount is approximately $1,050. It is important to note that Michigan law limits annual growth of the Taxable Value to the rate of inflation or 5%, whichever is lower, unless ownership changes.
When a property transfers ownership, the Taxable Value is "uncapped" and reset to the Assessed Value in the year following the sale. Consequently, buyers should prepare for a potential tax increase regardless of the current tax history.