Ann Arbor Property Taxes: Rates, Due Dates, and Appeals

Ann Arbor property taxes are billed twice a year at combined millage rates of roughly 52.67 mills for owner-occupied homes and 68.63 mills for non-homestead properties, plus a 1% administration fee.¹ Summer bills are due July 31 and winter bills are due December 31.² The city does not levy a local income tax, so for most residents property tax is the main local obligation.³

How Your Bill Is Calculated

Michigan’s General Property Tax Act sets the framework every local jurisdiction uses to assess and collect real estate taxes.⁴ One mill equals one dollar of tax for every $1,000 of taxable value.² After the millage rate is applied, the city adds a 1% administration fee to the total.¹

A worked example: a home with a taxable value of $150,000 at 52.67 mills owes roughly $7,979 before the admin fee and about $8,059 after.

Taxable value is not market value. Under Proposal A, taxable value can rise each year only by the lesser of 5% or the change in the Consumer Price Index, no matter what the market does. When a property changes hands, the taxable value resets to the State Equalized Value, which reflects 50% of market value. That reset is why your first tax bill after buying a home can be much higher than the seller’s last bill, even when the millage rate hasn’t moved.

The Principal Residence Exemption

If you own and occupy your Ann Arbor home as your primary residence, the Principal Residence Exemption removes up to 18 mills of local school operating taxes from your bill.⁵ Using current rates, a homestead property pays about 52.67 mills and a non-homestead property pays about 68.63 mills.¹ On a $150,000 taxable value, that gap is roughly $2,400 a year.

Claim it by filing form 2368 with the city assessor’s office. If you move out or rent the property, you’re required to rescind the exemption. Check your bill each cycle to confirm the PRE status is right; a missing exemption means you’re paying the non-homestead rate.

Summer and Winter Due Dates

Ann Arbor splits the tax year into two billing cycles. Summer bills go out on July 1 and are due without penalty by July 31. Winter bills go out on December 1 and are due without penalty by December 31.²

The summer bill is the larger of the two. It includes city operating millage along with 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.

What Happens If You Pay Late

Penalties for missing a property tax deadline stack quickly, and delinquency eventually puts your home at risk. The charges are authorized under Section 211.44 of the General Property Tax Act.⁶

Paid after the due date but before February 15 of the following year: a property tax administration fee of up to 1%.
Paid after February 14: a 3% late penalty added on top of the administration fee.
Returned as delinquent: a 4% county property tax administration fee applies, and interest accrues at 1% per month on the outstanding balance.

If the taxes stay unpaid, the timeline moves fast. On March 1 of the year after the levy, unpaid taxes are returned to the Washtenaw County Treasurer as delinquent. One year after that, the property forfeits to the county. A judicial foreclosure follows, and if the balance still isn’t paid by roughly March 31 of the third year after the original tax year, a court enters a foreclosure judgment and title transfers away from you.⁷ Because the process is judicial, legal fees pile on once it reaches the court stage.

How To Pay

Online

The city’s online portal through Invoice Cloud accepts credit cards, debit cards, and electronic checks. Credit and debit card 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, making them the cheapest digital option.⁸ The city doesn’t always send paper receipts for online payments, so save the confirmation screen when your transaction goes through.

Drop Box or Mail

There are two drop boxes for check payments. A 24-hour drive-up box sits at the corner of East Ann Street and North Fifth Avenue, and a second box is just 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 48277-0602.⁹ Write your parcel number in the memo line. Postmark controls timing: a check mailed on July 31 but postmarked August 1 counts as late.

Confirming the Payment Posted

Search your parcel on the city’s online assessment tool and look for a “paid” status on the relevant tax year. The corresponding withdrawal on your bank statement is a second confirmation.

Reading Your Statement

Assessment notices arrive from the city during the first quarter of each year, showing your property’s assessed value and taxable value. The actual bills follow in July and December. Every property has a unique parcel identification number that acts as the account identifier for all tax transactions; you can find yours on any prior bill or through the city’s online assessment database.

Before you pay, check two things. Confirm the property classification is correct. Confirm the Principal Residence Exemption status is accurate if you live in the home. Any special assessments should appear as separate line items from the regular millage.

Appealing Your Assessment

If you think your 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.¹⁰ Appearances are by appointment. Bring evidence that the true cash value of your property is lower than twice the assessed value; comparable sales for similar nearby homes are the most persuasive evidence for residential properties. A professional appraisal strengthens the case and typically costs $300 to $700.

If the Board rules against you, residential owners can appeal to the Michigan Tax Tribunal by July 31 of the same year. Going through the Board of Review first is mandatory; you can’t skip straight to the Tribunal. The Board is also the only venue for correcting a Principal Residence Exemption issue or challenging a property classification error, so the March hearing matters even if you expect to end up at the Tribunal.

Relief Beyond the PRE

Michigan’s Homestead Property Tax Credit directly reduces your state income tax bill based on the property taxes you paid. It’s available to homeowners and renters whose total household resources fall below a set threshold, claimed on your Michigan return using form MI-1040CR. Eligibility rules and credit amounts are more generous for seniors, disabled residents, and veterans. Renters can claim a portion of their rent as property taxes paid.

Special Assessments on the Bill

Your bill may include special assessments alongside the regular millage. In Ann Arbor, these most often come from sidewalk construction or repair performed by the city on your property’s frontage. If you don’t pay the invoice within 120 days, the charge is added to your next tax roll with a 10% penalty.¹¹ Special assessments carry the same lien priority as regular property taxes, so unpaid balances can feed into the same delinquency and foreclosure process. Read the line items carefully; you’re responsible for the millage and the assessments both.

1
City of Ann Arbor. Property Tax Estimator
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City of Ann Arbor. Property Taxes
3
Michigan Department of Treasury. Which Cities Impose an Income Tax
4
Michigan Legislature. MCL – Act 206 of 1893 – The General Property Tax Act
5
Michigan Department of Treasury. Principal Residence Exemption
6
Michigan Legislature. MCL – Section 211.44
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Michigan Department of Treasury. Real Property Tax Foreclosure Timeline
8
City of Ann Arbor. Pay Taxes Online
9
City of Ann Arbor. Treasury
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City of Ann Arbor. Assessing
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City of Ann Arbor. Special Assessments – Code of Ordinances