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Updated over 3 years ago on . Most recent reply

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Daniel Carty
  • New to Real Estate
  • Detroit, MI
6
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11
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How do I estimate Property Tax?

Daniel Carty
  • New to Real Estate
  • Detroit, MI
Posted

I'm buying a few investment properties in Detroit. How do I estimate what property taxes will be?

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Scott M.
  • Real Estate Broker
  • Rochester Hills, MI
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Scott M.
  • Real Estate Broker
  • Rochester Hills, MI
Replied

What @Joe Lijoi is pointing you to is where you go to see if you have any back taxes owing on a parcel in Wayne County. Nothing to do with estimating current or future taxes. As a realtor/broker for 20 years I simply use the MLS to find the state equalized value of the proprety, that is really what you need to find. As I have had access to that for 20 years I really do not know how a non-realtor find that info but if you are working with a realtor ask them to provide for you the state equalized value. If you are not working with anyone send me a message and I am happy to help you on estimating the taxes. Takes but a minute.

If you do find the state equalized let everyone here know where you found it so everyone can learn.  Once you have the SEV you need to multiply that by the tax millage rate.  That can be found here:  

Taxes - Millage Rates (michigan.gov)

You need to find the city and school discritc that your home is in and then find either the homestead (if you live as your primary home) or non homestead (far right column and if it isn't your primary home) and then move the decimal place over so you have .0   So, for example the non homestead for detroit is 87.6202.  You would instead use .0876202  Then you need to add any other fees, for example 240 for a single family home in Detroit. And ~25 for admin fees.  Lets do an example:

20,000 Example SEV for a Detroit home with Detroit schools.  You need to use the proper SEV for your home
x
.0876202   Tax millage rate for non owner occupied (investment) 

= $1,752.40 

+ 240 +25

= $2,017.40


For me, I would round that up to 2,100 as an estimate for you spreadsheet, better to be a little high then a little low.  

The only catch is you have to find the SEV and I haven't looked for that in 2 decades as I have access through the MLS. Again, if you or anyone is having trouble or wants me to find the SEV for them, just let me know, happy to help.





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