Registered to Buying · 4 min read
Service notes
- A mill is $1 of tax per $1,000 of taxable value.
- The Principal Residence Exemption removes 18 mills from an owner-occupied home’s bill; file Form 2368 with the city assessor by June 1 or November 1.
- The deadline for 2026 HOPE poverty exemption applications is 4:30 p.m. on November 6, 2026.
Detroit homes are inexpensive to buy compared with the rest of Michigan, but property taxes can surprise new owners. The city’s own Land Value Tax materials state that Detroit homeowners pay among the highest property taxes in Michigan. The two forms that do the most to lower a homeowner’s bill are free, and both have deadlines. Here is how the system works.
How the bill is calculated
Michigan property taxes are expressed in mills. A mill is $1 for every $1,000 of a property’s taxable value. The city’s own example: a house with a taxable value of $20,000 at a rate of 35 mills owes $700; at a taxable value of $10,000 it owes $350.
Part of every bill is the State Education Tax, a statewide tax that supports public schools. The city lists the current rate at six mills, levied on all property types and paid in the summer.
The Principal Residence Exemption: file it right away
The state exempts an owner’s primary residence from 18 mills of the tax bill. Detroit’s treasury page puts it simply: you must own and occupy your home. But the exemption is not automatic. Michigan Treasury says you must file a Principal Residence Exemption Affidavit, Form 2368, with the assessor of the city or township where the property is.
| You file Form 2368 | Your taxes drop starting with |
|---|---|
| On or before June 1 | That year’s summer tax bill |
| June 2 through November 1 | That year’s winter tax bill |
If you missed the deadline, all is not lost. Treasury says the assessor may grant the exemption retroactively for the current year and the three previous calendar years, as long as you met the requirements on each June 1 or November 1 being claimed. In Detroit, the Assessment Division is in Room 804 of the Coleman A. Young Municipal Center, (313) 224-3035.
The exemption cuts both ways. When the home stops being your principal residence, you must file a Request to Rescind, Form 2602, within 90 days or face a $5-a-day penalty up to $200. Filing a false claim is a serious offense under state law, with fines and possible jail time.
Tip: Closing agents often hand buyers Form 2368, but Treasury notes they are not legally liable if they do not. Make filing it your own job in your first week as an owner.
HOPE: the poverty exemption
If you cannot pay your property taxes for financial reasons, Detroit’s Homeowners Property Exemption, known as HOPE or the poverty tax exemption, may reduce or eliminate the current year’s taxes based on household income. Key points from the city’s guidance:
- You must own and occupy the home as your primary residence.
- Exemptions come in tiers of 100, 75, 50, 25 and 10 percent depending on household income and size. The 10 percent tier requires a threat of tax foreclosure or at least a 20 percent loss of household income from the prior year.
- Total household assets, excluding the home, may not exceed $12,000.
- Only the Board of Review can approve an application.
- Even with an exemption, fees such as the solid waste fee still apply.
The application packet includes state Forms 5737 and 5739, proof of ownership, ID for the owner and every adult resident, proof of income for everyone in the household, the latest tax returns or a Form 4988 affidavit, and proof of residency for any minors. For 2026, applications are due by 4:30 p.m. on November 6, 2026, and the city urges filing early. For free help with the application, call 211 or text HOME to 85274.
If you are already behind
The city points homeowners with HOPE and the Pay As You Stay program toward the Detroit Tax Relief Fund, which may eliminate delinquent property taxes owed to the Wayne County Treasurer. Call (866) 313-2520. Delinquent taxes and payment plans are handled by the Wayne County Treasurer’s Office.
Paying the bill
Detroit taxes can be paid in installments. If you choose that option, the first summer installment is due August 15; miss it and the full summer payment becomes due. Payment options include an app, online card payments with a service fee of about 2.3 percent, free cash payment at city kiosks, and mail. The optional Plan Ahead program lets residents make smaller deposits toward future bills.
If you paid off your mortgage, the city may still be sending bills to your lender. Bring payoff information to the customer service center, Room 130 of the Coleman A. Young Municipal Center, to fix it.
Assessments are changing
In January 2026, Mayor Mary Sheffield ordered the Assessor to adopt national IAAO ratio standards, publish a mass appraisal report twice a year and revise the residential economic condition factors so values reflect each neighborhood’s market. If you think your assessment is wrong, the Assessor’s Office explains the review and appeal process and the dates on its Assessor Review page, and assessment records are online through BS&A Online.
Buying through the Land Bank or with down payment help? See Buying a Detroit Land Bank Home: Auctions, Own It Now and the Rehab Rules and Detroit Down Payment Assistance: Up to $25,000 for Buyers Who Already Live in the City. Detroit also levies a city income tax on residents; see Detroit’s City Income Tax: 2.4 Percent for Residents, 1.2 Percent for Commuters.