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Updated 2025 Tax Year

Arenac County
Property Tax Guide

Everything you need to know about property taxes in Arenac County, MI. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
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Quick Facts
Tax Rate
Varies by district - typically 25-45 mills total (school, county, township combined)
1st Due
Jul 1
2nd Due
Dec 1
Exemptions
5+ Available
Section 1

How Property Tax Works

Arenac County, Michigan operates under the state's property tax system, which serves as the primary funding mechanism for local services including schools, county operations, townships, and various special districts. Property taxes in Arenac County fund essential services such as public safety, road maintenance, parks and recreation, libraries, and local school districts. The county follows Michigan's standard assessment practices where properties are assessed at 50% of true cash value, with taxable values capped by the Consumer Price Index or 5% annually, whichever is less, until ownership transfer.

Property tax rates in Arenac County vary significantly by location within the county due to different combinations of school districts, townships, cities, villages, and special taxing districts. The effective tax rate typically ranges from approximately 1.5% to 2.5% of market value, depending on your specific tax jurisdiction. Each property owner receives taxes from multiple entities: the county, their local municipality (township, city, or village), school district, and any applicable special assessment districts for services like fire protection, libraries, or road improvements.

Section 2

What Makes Up Your Tax Bill

ComponentApproximate Rate (Mills)Description
County Operations4.5-6.0General county services, courts, sheriff
School District18.0-28.0Local school operations (varies by district)
Township/City1.0-3.0Local municipal services
Intermediate School District3.0-5.0Regional education services
Community College2.0-4.0Mid Michigan College district
Library0.5-2.0Public library services (where applicable)
Special Assessments0.0-5.0Fire, ambulance, road, drainage districts

Note: These are estimated ranges for planning purposes. Official 2025 millage rates have not yet been released by local jurisdictions. One mill equals $1 per $1,000 of taxable value. Actual rates vary significantly by specific location within Arenac County based on which school district, township, and special districts serve your property. Check with the Arenac County Equalization Department for your specific millage rate combination.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Arenac County, property taxes are due in two installments:

First Installment
Jul 1
Delinquent after Dec 10
Second Installment
Dec 1
Delinquent after Apr 10
Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental taxes in Arenac County are additional property tax bills issued when there are significant changes to a property's assessment during the tax year. The most common trigger is the "uncapping" of taxable value that occurs when property ownership transfers, causing the taxable value to reset to the current assessed value (50% of market value). This can result in a substantial increase in the tax bill if the property's market value has grown significantly since the previous owner purchased it.

Other situations that may trigger supplemental taxes include new construction completion, property improvements that increase value, or corrections to previous assessments. For example, if you purchase a home in Arenac County that was previously owned by the same family for 20 years, the taxable value likely remained well below the assessed value due to Michigan's annual cap on assessment increases. Upon your purchase, the taxable value immediately increases to match the assessed value, generating a supplemental tax bill for the difference. The county treasurer must provide proof of delivery for supplemental tax bills, and taxpayers have 60 days from receipt to pay before penalties apply.

Example Calculation

Example 1: $300,000 Home with Principal Residence Exemption

  • Market Value: $300,000
  • Assessed Value: $150,000 (50% of market value)
  • Less: Principal Residence Exemption: $18,000 (school operating taxes)
  • Taxable Value: $132,000
  • Annual Tax (at 35 mills average): $4,620
  • Monthly Escrow: $385

Example 2: $600,000 Home with Principal Residence Exemption

  • Market Value: $600,000
  • Assessed Value: $300,000 (50% of market value)
  • Less: Principal Residence Exemption: $18,000 (school operating taxes)
  • Taxable Value: $282,000
  • Annual Tax (at 35 mills average): $9,870
  • Monthly Escrow: $823

Example 3: $1,000,000 Home with Principal Residence Exemption

  • Market Value: $1,000,000
  • Assessed Value: $500,000 (50% of market value)
  • Less: Principal Residence Exemption: $18,000 (school operating taxes)
  • Taxable Value: $482,000
  • Annual Tax (at 35 mills average): $16,870
  • Monthly Escrow: $1,406

Note: These examples assume average millage rates and the Principal Residence Exemption, which requires annual application. Actual rates vary by specific location and special districts. Senior citizens and veterans may qualify for additional tax credits that require separate applications.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Arenac County require property tax escrow accounts for borrowers with less than 20% down payment, though many homeowners choose escrow regardless for convenience. Your lender collects monthly escrow payments equal to 1/12 of your annual property tax bill plus insurance premiums. The servicer pays your property taxes directly to Arenac County when due, typically in two installments: the first by July 1st and the second by November 1st.

Lenders must maintain escrow account balances within federal guidelines and provide annual escrow analyses showing projected taxes and insurance costs. Since Michigan's Proposal A limits annual taxable value increases, your escrow payments should remain relatively stable unless you've recently purchased the property, completed major improvements, or local millage rates change. Property owners can verify their tax payments by checking with the Arenac County Treasurer's office or accessing online records. If you pay taxes directly without escrow, remember that Michigan allows partial payments but charges penalties on late payments, with the first installment delinquent after July 1st and the second after November 1st.

How HonestCasa Helps
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  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are property taxes due in Arenac County for 2025? A: Property taxes are due in two installments for the 2024-2025 tax year: the first installment (summer taxes) by July 1, 2025, and the second installment (winter taxes) by November 1, 2025. Late payments incur penalties and interest charges.

Q: What is the Principal Residence Exemption and do I need to apply? A: The Principal Residence Exemption is a tax credit that exempts your primary residence from school operating millages (typically 18 mills), potentially saving $1,000+ annually. This is NOT automatic - you must file Form 2368 with your local assessor by May 1st following the year you move in or purchase the home.

Q: How does the Homestead Property Tax Credit work? A: This is an income-based tax credit for qualified homeowners that caps assessment increases at approximately 10% annually rather than following market value increases. You must apply annually through your Michigan income tax return or file Form MI-1040CR. The credit amount depends on your income and property taxes paid.

Q: Are there property tax credits for senior citizens? A: Yes, qualifying senior citizens may be eligible for additional tax credits including the Senior Citizen Property Tax Credit and potential poverty exemptions. These require separate applications with income verification and must be filed with your local assessor by specific deadlines, typically by March 1st annually.

Q: When does the county reassess properties? A: Michigan requires annual assessments, but major reappraisals typically occur every few years. Arenac County assessors review property values annually and must maintain assessments at 50% of true cash value. Property owners receive assessment notices in March and can appeal to the Board of Review in March/April.

Q: What happens if I disagree with my property assessment? A: You can appeal your assessment to your local Board of Review, typically meeting in March. If unsatisfied, you can further appeal to the Michigan Tax Tribunal. Appeals must be filed within specific deadlines, usually by mid-March for Board of Review appeals.

Q: Can I pay my property taxes online? A: Contact the Arenac County Treasurer's office to confirm available online payment options. Many Michigan counties offer online payment systems, though some may charge convenience fees for electronic payments.

Q: What is a special assessment and why is it on my tax bill? A: Special assessments are additional taxes levied by special districts for specific services like fire protection, libraries, road maintenance, or drainage. These vary by location within Arenac County. Your tax bill will itemize each special assessment, and rates are set by the governing boards of each special district.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
Tax Doc
Property Tax Estimatortreas-secure.state.mi.us
02
Millage Rate Calculationmichigan.gov
03
Tax Doc
2024 Commercial, Industrial, and Utility Property Tax Reportmichigan.gov
04
Main Form 601 FEDERAL COMMUNICATIONS ...fcc.gov
05
Frequently Asked Questionsmichigan.gov
06
Forfeiture and Foreclosure Flow Chart - Printable Versionarenaccountymi.gov
07
Tax Doc
2024 Total Property Tax Rates in Michiganmichigan.gov
08
Frequently Asked Questionsarenaccountymi.gov
09
form-2856-guidelines-for-the-michigan-principal-residence ...arenaccountymi.gov
10
Search Results - Michigan Legislaturelegislature.mi.gov
All sources verified as of 2025 Tax Year

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