Align Lending Research
How our research works
Where the numbers come from, how each one is calculated, what they do not show, and how to reuse them.
- Public records only
- Free to reuse with credit
Principles
What every study follows
- Public records only. Every figure comes from a government source, and every source is linked.
- Every edition keeps its URL and its numbers. A correction is logged on the page with its date, so a citation stays true.
- One data file per edition. The page, the PDF, the CSV, the charts and the structured data are all built from it.
- No rate quotes and no predictions. Research describes what the records show.
- Checked against the source. The Uncapping Study's statewide figures for 2022 to 2025 match the State Tax Commission's annual report to the dollar.
The Uncapping Study
Method, limits and definitions
Michigan Property Tax Uncapping Study
- From the State Tax Commission's 2026 forms, take each county's residential state equalized value (form L-4024) and residential taxable value (form L-4046), for the county and for every city and township in it.
- Divide SEV by taxable value and subtract one. That is how much higher total taxable value would be if every home in the group were reset to SEV, which is what happens to each home the year after it sells. It is weighted by value.
- For dollars, apply the median homestead millage across each place's school districts and villages, from Treasury's 2025 total millage rates, to a home worth $300,000 (SEV $150,000).
- For the trend, repeat the first two steps with the State Tax Commission's statewide residential totals for every year from 2008 to 2026.
Limits
- It is an average. A home held for decades jumps more than its place's figure; a home bought last year barely moves.
- It covers the residential class only, which includes rentals and second homes as well as owner-occupied houses.
- New construction and additions enter taxable value at their own value, which narrows the gap slightly.
- A city or township that spans two counties appears once in each, with that county's part.
- Actual bills also depend on millage changes, special assessments and whether the buyer claims the principal residence exemption.
Definitions
- State equalized value (SEV)
- Half of a property's market value, as set by the local assessor and equalized by the county and the State Tax Commission.
- Taxable value
- The value your tax is calculated on. While one owner holds the home it rises by inflation or 5%, whichever is less, and never above SEV.
- Uncapping
- After a transfer of ownership, taxable value resets to SEV the following year (MCL 211.27a).
- Jump at sale
- SEV divided by taxable value, minus one: how far a home's taxable value rises, on average, when it resets after a sale.
- Mill
- One dollar of tax for every $1,000 of taxable value.
- Homestead rate
- The millage on an owner-occupied home that claims the principal residence exemption, which removes most school operating millage.
Sources
Where the data comes from
- Michigan State Tax Commission: Taxable Valuations (forms L-4024 and L-4046, state totals by class)Residential SEV and taxable value by county, city and township, 2026; statewide by class, 2008 to 2026. Retrieved September 30, 2026 through the Commission's public guest reports.
- Michigan Department of Treasury: Total Property Tax Rates in Michigan, 2025Homestead and non-homestead millage for every city, township, school district and village.
- Michigan State Tax Commission: 2025 Annual ReportUsed as a check: the statewide residential figures for 2022 to 2025 match it to the dollar.
- Michigan Compiled Laws, MCL 211.27aThe cap on taxable value and the reset after a transfer of ownership.
- U.S. Census Bureau: Cartographic Boundary Files, counties, 2023County outlines for the map.
Reuse
License and citation
Align Lending research is published under Creative Commons Attribution 4.0. You may copy, republish, chart and adapt it, including commercially, as long as you credit Align Lending and link to the study you used.
Suggested citation: Align Lending, Michigan Property Tax Uncapping Study, 2026 edition. https://alignlending.com/research/michigan-property-tax-uncapping-study/
Corrections
Found something wrong?
If you find an error, email samantha@alignlending.com. We check it against the source, correct the figure, and log the change on the study page with its date.
Correction log: none.
Align Lending LLC, NMLS #2041154, is a mortgage broker. Samantha Shelton, NMLS 1647301. Equal Housing Opportunity. Licensed in Michigan, Ohio, North Carolina, Florida, Louisiana and Texas. This research is published for information. It is not tax advice, not an offer to lend, and not a rate quote. A specific home's tax bill depends on the property, its school district and its millage; ask your assessor or a loan officer for the figure that applies to you.
