If you own property in Ann Arbor, understanding your 2025 tax assessment is more important than ever. With rising home values, annual adjustments, and new city budget allocations, many residents are seeing changes to their property taxes — and not all of them are straightforward. Here’s a breakdown of what’s happening, why it matters, and what you can do about it.
Taxable Value Capped, But Still Rising
In Michigan, your property taxes are based on the taxable value of your home — not necessarily what it would sell for. Each year, the state caps taxable value increases at the rate of inflation or 5%, whichever is lower. For 2025, that means a 3.1% maximum increase. That limit applies unless the property changed ownership or had major renovations, in which case the taxable value is “uncapped” and reset to match the current market-assessed value. If your home was sold in 2024, your tax bill could jump more than usual in 2025.
Assessment Notices: Don’t Ignore Them
Assessment notices were mailed out in March. They show both your home’s assessed value (what the city thinks it’s worth on the open market) and its taxable value (what you’ll actually pay taxes on). Even if your taxes didn’t change much this year, these values will affect future bills — and your ability to appeal depends on noticing errors now, not later.
Millage Rates and Where Your Tax Dollars Go
Ann Arbor’s 2025 millage rates were approved as part of the city budget last May. About 26.5% of your property tax payment goes directly to city services like fire, police, roads, and parks. The rest — over half — supports local schools and other educational institutions including Ann Arbor Public Schools, Washtenaw Community College, and the State of Michigan.
These millage rates can shift annually depending on voter-approved initiatives and funding needs. Even if your home value stays the same, these rates affect your final bill.
Important Dates to Remember
- Summer Tax Bills are mailed July 1 and due by July 31
- Winter Tax Bills go out December 1 and are due by December 31
Late payments come with penalties, so mark your calendar or set reminders to avoid extra fees.
Can You Appeal? Yes — But Don’t Wait
If you believe your home’s assessed value is too high, you had a chance to appeal through the city’s March Board of Review. But don’t worry — you can still file with the Michigan Tax Tribunal (for residential properties) until July 31, 2025. It’s a more formal process, but it could save you hundreds or even thousands in taxes if your valuation is off.
Also, don’t overlook available exemptions. If you qualify as a disabled veteran or meet income guidelines, the city offers poverty and hardship exemptions — you just have to apply.
Access Your Records Online
You can review your home’s assessed and taxable values, past bills, and more using the city’s Online Property Lookup Tool. It’s free, fast, and often more detailed than the paper notices.
Property tax changes can be confusing — but they’re also one of the most important parts of owning a home. If you’re planning to sell, refinance, or just stay informed, keeping up with your assessment and understanding your options to appeal or reduce your bill could pay off.
If you need help interpreting your assessment, considering a sale, or just want to talk strategy — I’m here. Let’s make sure your home is working for you in 2025.