The city of Troy tax you owe depends entirely on which Troy you live or work in. Troy, Michigan and Troy, New York both collect property taxes and neither charges a local income tax. Troy, Ohio goes the other way: it imposes a 1.75% municipal income tax on wages and business profits earned in the city, on top of property taxes collected at the county level. Rates, deadlines, and exemptions differ enough that guidance written for one Troy can be wrong for another.
Troy, Michigan Property Tax
Troy, Michigan bills property tax twice a year. A summer bill goes out around July 1 and is due by September 1; a winter bill goes out around December 1 and is due by February 14. Both are penalty-free if paid by those dates.1City of Troy, Michigan. City Treasurer’s Office The bills fund the city, county, schools, and special authorities, and the total millage depends on your school district. For homes in the Troy School District claiming the Principal Residence Exemption, the total is roughly 36 mills.2Michigan Department of Treasury. Total Property Tax Rates in Michigan 2025 One mill equals $1 per $1,000 of taxable value, so a home with a taxable value of $150,000 at 36 mills would owe about $5,400 a year across both bills.
Michigan taxes are calculated on “taxable value,” not full market price. The local assessor sets your assessed value at 50% of true cash value each year, but under Proposal A (a 1994 constitutional amendment), your taxable value can only rise by the rate of inflation or 5%, whichever is less, until the property sells or you add to it.3Oakland County, Michigan. Real and Personal Property Information Long-time owners in a rising market often pay tax on a figure well below what their house would sell for. When a home changes hands, taxable value resets to the new assessed value the following year, so buyers in Troy should expect a jump from what the previous owner was paying.
Principal Residence Exemption
The Principal Residence Exemption is the biggest break available to Troy, Michigan homeowners. It exempts your home from up to 18 mills of local school operating taxes. To qualify, 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 place until you move.4Michigan Department of Treasury. Principal Residence Exemption Second homes, rentals, and vacation properties do not qualify. The difference between a homestead and a non-homestead bill in Troy can easily exceed $2,500 per year.
Appealing Your Assessment
If you think your assessed or taxable value is wrong, the calendar is tight. The local Board of Review begins hearing appeals on the second Monday in March, and you must appear there before you can escalate to the Michigan Tax Tribunal.5City of East Grand Rapids, Michigan. Assessment / Taxable Value Appeal Process The evidence that moves the Board is recent comparable sales showing your home is worth less than the assessor’s figure. Arguments that the bill is too high, or that your value went up by too large a percentage, carry no weight. The Board only decides whether the number reflects market value.
Troy, New York Property Tax
Troy, New York bills city and county property taxes in two installments, the first due in January and the second in July.6City of Troy, New York. Tax Bill School taxes run on a separate cycle. The city’s 2026 budget includes a 2.29% tax rate expansion, which the city estimates at about $4.64 more 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
Late payments in New York accrue interest at 1% per month, or any fraction of a month, under state law.8New York Department of Taxation and Finance. Interest Rates on Late Payment of Property Taxes Miss both installments on a $4,000 bill for six months and you’ve added $240 in interest before any other fees.
STAR Exemption and Credit
New York’s STAR program reduces school tax bills for eligible homeowners. Basic STAR is available to owners whose primary residence has combined household income of $250,000 or less; new applicants must register for the STAR credit instead, with income capped at $500,000. Enhanced STAR gives a larger reduction to owners aged 65 or older with combined income of $110,750 or less. Eligibility for the 2026 benefit year is based on 2024 federal tax return information.9New York Department of Taxation and Finance. STAR Eligibility If you bought your home in Troy, New York after 2015, the STAR exemption is closed to you; you register for the STAR credit through the state tax department instead.
Troy, Ohio Municipal Income Tax
Troy, Ohio charges a 1.75% income tax on wages, salaries, commissions, and net business profits earned within the city.10City of Troy, Ohio. Income Tax FAQs Troy residents owe it on all their earned income no matter where they work. Nonresidents owe it only on income earned while physically working in Troy. Ohio Revised Code Chapter 718 supplies the authority for municipalities to collect this tax.11Ohio Legislative Service Commission. Ohio Revised Code 718.04 – Authority for Tax on Income and Withholding Tax
Taxable income covers wages and compensation from any source, distributive shares of pass-through profits, and lottery and gambling winnings.12Ohio Legislative Service Commission. Ohio Revised Code Chapter 718 – Municipal Income Taxes Businesses operating in Troy, whether corporations, partnerships, LLCs, or sole proprietors, owe the same 1.75% rate on net profits attributable to the city.10City of Troy, Ohio. Income Tax FAQs
Credit for Taxes Paid to Other Ohio Cities
Troy residents who work in another Ohio city with its own income tax get a credit against their Troy liability, up to Troy’s 1.75% rate. If the workplace city’s rate is 1.75% or higher and withholding is done correctly, you owe Troy nothing more on that income. If the other city charges 1%, you still owe Troy the 0.75% difference.10City of Troy, Ohio. Income Tax FAQs The credit only offsets what you actually paid to the other city, not what you might have paid.
Quarterly Estimated Payments
If you expect your Troy income tax liability to exceed $200 in a year after withholding, you’re required to make quarterly estimated payments.10City of Troy, Ohio. Income Tax FAQs This mainly hits self-employed residents, business owners, and anyone with substantial income outside employer withholding. Troy’s tax office recommends filing the annual return before April 1 to avoid long waits at the deadline. The quarterly schedule generally tracks the federal April-June-September-January pattern.
No City Income Tax in the Michigan or New York Troys
Residents of Troy, Michigan and Troy, New York do not pay a city-level income tax. Michigan authorizes only 24 specific cities to levy a local income tax, and Troy isn’t one of them.13Michigan Department of Treasury. Which Cities Impose an Income Tax? New York doesn’t grant its cities the power to impose a separate municipal income tax at all. If you moved to either of these Troys from a city that did collect one (Detroit or New York City, for instance), that particular obligation is gone.
Late Payment and Failure-to-File Penalties
Penalties look different in each Troy.
Troy, Michigan
Delinquent property taxes in Michigan accrue interest at 1% per month on the unpaid balance, plus a 4% county property tax administration fee.14Michigan Legislature. Michigan Compiled Laws – Act 206 of 1893 – Collecting of Taxes Miss the September 1 or February 14 deadline and those charges start immediately. Unpaid taxes are eventually returned as delinquent to the county treasurer, and after a statutory period the property can be forfeited and foreclosed.15Michigan Legislature. Michigan Compiled Laws 211.78 The process is slow, but reversing course once it starts is expensive.
Troy, New York
Late property tax payments accrue interest at 1% per month or any fraction of a month.8New York Department of Taxation and Finance. Interest Rates on Late Payment of Property Taxes Because billing is split between January and July, missing one installment starts the interest clock on that full amount right away.
Troy, Ohio
Under Ohio law, the penalty for failing to file a municipal income tax return on time is up to $25 for each month or partial month the return stays unfiled. The statute requires the penalty to be waived for your first late filing, provided you eventually submit the return.16Ohio Legislative Service Commission. Ohio Revised Code 718.27 That one-time forgiveness doesn’t apply the second time around. Interest also runs on any unpaid balance at a rate the Ohio Tax Commissioner sets and periodically adjusts.