Summer Property Taxes vs Winter Property Taxes

At a Glance

• Michigan homeowners typically receive two property tax bills each year: a summer bill and a winter bill.
• Summer and winter property taxes may fund different schools, local governments, and community services.
• Most homeowners with a mortgage pay property taxes through an escrow account as part of their monthly payment.
• Property taxes may change after buying a home because Michigan’s tax uncapping rules can affect taxable value.

 

TABLE OF CONTENTS:

• Understanding Michigan’s Two Property Tax Bills
• Why Does Michigan Have Summer and Winter Property Taxes?
• What’s Included in Summer Property Taxes?
• What’s Included in Winter Property Taxes?
• How Property Taxes Affect Your Mortgage Payment
• Understanding Tax Uncapping
• Michigan Still Offers Strong Affordability
• Why You Can Trust Treadstone
• FAQs

 

Understanding Michigan’s Two Property Tax Bills

Many first-time homebuyers are surprised to learn that Michigan property taxes don’t typically arrive as one annual bill.

Instead, most homeowners receive two separate property tax bills each year: a summer tax bill and a winter tax bill.

If you’re buying a home in Michigan, understanding how these taxes work can help you budget more accurately and avoid surprises after closing.

While receiving two tax bills may seem complicated at first, the system is actually fairly straightforward once you understand what each bill covers and how mortgage lenders handle property taxes.

 

Why Does Michigan Have Summer and Winter Property Taxes?

Michigan property taxes are typically divided into two collection periods because different local governments and taxing authorities collect taxes at different times throughout the year.

Rather than collecting everything in one payment, taxes are split into:

• Summer property taxes
• Winter property taxes

The exact due dates can vary slightly by municipality, but most summer tax bills are issued around July, while winter tax bills are typically issued around December.

For homeowners with a mortgage escrow account, the lender generally collects money throughout the year and pays both tax bills on the homeowner’s behalf.

For homeowners without escrow, it’s their responsibility to pay each bill directly when due.

 

What’s Included in Summer Property Taxes?

Summer property taxes often make up the larger portion of a homeowner’s annual tax obligation.

Depending on where you live, summer taxes may help fund:

• Local school districts
• Intermediate school districts
• Community colleges
• City or township operations
• County services
• Libraries and other local services

The exact breakdown varies from one Michigan community to another.

For example, a homeowner in Grand Rapids may have a different mix of taxing authorities than a homeowner in Traverse City, Lansing, Kalamazoo, or Metro Detroit.

That’s one reason two similarly priced homes in different communities can have noticeably different property tax bills.

 

What’s Included in Winter Property Taxes?

Winter property taxes generally include additional school-related millages and other local assessments.

Although winter tax bills are often smaller than summer bills, they are still an important part of a property’s total annual tax obligation.

Many buyers focus only on the home’s purchase price and mortgage payment while overlooking taxes. However, annual property taxes can significantly impact your total monthly housing expense.

Understanding both summer and winter tax obligations helps provide a more accurate picture of what homeownership will actually cost.

 

How Property Taxes Affect Your Mortgage Payment

One of the biggest misconceptions among homebuyers is that property taxes are completely separate from their mortgage.

In reality, most borrowers pay property taxes through an escrow account.

Each month, your mortgage payment may include:

• Principal
• Interest
• Property taxes
• Homeowners insurance

Your lender collects a portion of your annual property tax obligation each month and then pays the summer and winter tax bills when they’re due.

This helps homeowners avoid having to come up with thousands of dollars at once when tax season arrives.

When you’re shopping for homes, it’s important to look at the total monthly payment rather than just the loan amount.

A home with lower property taxes may ultimately be more affordable than a similar home with significantly higher taxes.

 

Understanding Tax Uncapping

One of the most important property tax concepts in Michigan is something called tax uncapping.

When a home changes ownership, the taxable value may be adjusted to reflect the property’s current market value.

This means the property taxes you see on a listing today may not be the same taxes you pay after purchasing the home.

Many buyers make the mistake of assuming the seller’s tax bill will become their tax bill.

That’s not always the case.

A home that has been owned by the same family for many years may have a taxable value significantly lower than its current market value. After the sale, the taxable value may increase, resulting in higher future tax bills.

This is one reason working with an experienced local lender is so valuable. Your mortgage professional can help you understand how property taxes may change after closing and what that means for your budget.

 

Michigan Still Offers Strong Affordability

Although property taxes are an important part of homeownership costs, Michigan remains one of the more affordable housing markets in the country.

Many Michigan communities still offer home prices that are significantly lower than comparable markets on the East and West Coasts.

That affordability often helps offset property tax costs and allows buyers to enter homeownership sooner than they might elsewhere.

Whether you’re buying in West Michigan, Southeast Michigan, Northern Michigan, or somewhere in between, understanding the full picture — including taxes — can help you make a more confident decision.

 

Why You Can Trust Treadstone Funding + Neighborhood Loans

Since 2003, Treadstone Funding + Neighborhood Loans has helped thousands of Michigan buyers understand not only mortgages, but the many costs that come with homeownership.

Our loan officers help buyers evaluate the complete financial picture, including property taxes, escrow accounts, insurance costs, and future affordability.

Because we’re focused on Michigan homebuyers, we understand the local tax landscape and can help you avoid surprises after closing.

Whether you’re purchasing your first home or your fifth, we’re here to help you make informed decisions every step of the way.

 

FAQs

Why does Michigan have summer and winter property taxes?

Michigan property taxes are typically split into two collection periods because different taxing authorities collect revenue at different times throughout the year.

Are summer taxes higher than winter taxes?

In many Michigan communities, summer property taxes are larger than winter taxes, although the exact amounts vary by location.

Do I have to pay property taxes separately from my mortgage?

Not usually. Most homeowners pay property taxes through an escrow account as part of their monthly mortgage payment.

Can my property taxes increase after I buy a home?

Michigan property taxes may increase after a property changes ownership because of tax uncapping rules.

How can I estimate future property taxes before buying a home?

A local mortgage professional can help estimate future tax obligations and explain how tax uncapping may affect your monthly payment after closing.

 

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