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Updated 2025 Tax Year

Bay County
Property Tax Guide

Everything you need to know about property taxes in Bay 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
Approximately 1% base rate, varies by school district and municipality
1st Due
Jul 1
2nd Due
Sep 14
Exemptions
5+ Available
Section 1

How Property Tax Works

Bay County, Michigan operates under a property tax system that funds essential local services including public schools, municipal services, county operations, and various special districts. Property taxes are assessed on real property, personal property, and industrial property within county boundaries, with the tax year running from July 1 to June 30. The county follows Michigan's General Property Tax Act, which provides the framework for assessment, exemptions, and collection procedures.

Effective property tax rates in Bay County typically range around Michigan's base rate of approximately 1% of assessed value, though actual rates vary significantly by location within the county due to different combinations of school districts, municipalities, and special taxing districts. Property owners should note that their specific tax rate depends on which taxing jurisdictions their property falls within, including the county, township or city, school district, and any applicable special assessment districts for services like libraries, fire protection, or road maintenance.

Section 2

What Makes Up Your Tax Bill

ComponentRateDescription
County OperationsVariesBasic county services and administration
School DistrictVariesLocal school district millage rates
Municipal/TownshipVariesCity or township services
Special DistrictsVariesFire, library, parks, and other special services
Total Effective Rate~1.0%Combined rate varies by location within county

Note: The 2025 property tax rates for Bay County have not yet been finalized and will be determined by the county board in spring 2025. The above reflects general rate structures based on 2024 data. Property owners should check with the Bay County Tax Office or Michigan Department of Treasury for current levy year rates. Actual rates vary significantly by special taxing districts within the county.

Section 3

When Are Property Taxes Due?

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

First Installment
Jul 1
Delinquent after Dec 10
Second Installment
Sep 14
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

Bay County is authorized under Michigan law to levy supplemental property taxes when certain triggering events occur during the tax year. The most common triggers include changes in property ownership, completion of new construction or major improvements, and corrections to assessment errors. When supplemental taxes are levied, they are calculated based on the difference between the old and new assessed values, prorated for the portion of the tax year remaining.

For example, if a property owner completes a $50,000 home addition in January and the county reassesses the property, increasing its taxable value by $25,000, the supplemental tax would be calculated on that $25,000 increase for the remaining months of the tax year. The supplemental bill would be issued separately from regular tax bills and would have its own due date, typically 30 days from the bill date.

Example Calculation

Example 1: $300,000 Property Value

  • Assessed Value: $150,000 (50% of market value)
  • Less: Principal Residence Exemption: $18,000
  • Net Taxable Value: $132,000
  • Annual Tax (at ~1.0%): $1,320
  • Monthly Payment: $110

Example 2: $600,000 Property Value

  • Assessed Value: $300,000 (50% of market value)
  • Less: Principal Residence Exemption: $18,000
  • Net Taxable Value: $282,000
  • Annual Tax (at ~1.0%): $2,820
  • Monthly Payment: $235

Example 3: $1,000,000 Property Value

  • Assessed Value: $500,000 (50% of market value)
  • Less: Principal Residence Exemption: $18,000
  • Net Taxable Value: $482,000
  • Annual Tax (at ~1.0%): $4,820
  • Monthly Payment: $402

Note: These examples assume the Principal Residence Exemption, which requires application and is available only to owner-occupied homes. Actual tax rates vary by location within Bay County based on special taxing districts.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Bay County require property tax escrow accounts for borrowers with less than 20% down payment, though some lenders may require escrow regardless of down payment amount. The lender collects monthly payments equal to 1/12 of the estimated annual property tax bill and holds these funds in a separate escrow account. Lenders typically pay the winter tax bill (due February 14) and summer tax bill (due September 14) directly to Bay County on behalf of the property owner.

Property owners with escrow accounts should review their annual escrow analysis statement carefully, as tax rate changes or assessment increases may require adjustments to monthly payments. If property taxes increase due to reassessment or rate changes, the lender may increase monthly escrow payments and may require a one-time payment to cover any shortage. Property owners can contact their lender to verify that tax payments have been made on time and to request copies of tax payment receipts for their records.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are Bay County property taxes due? A: Winter taxes are due by February 14, and summer taxes are due by September 14. Winter tax payments can be made starting December 1, and summer payments starting July 1.

Q: What tax credits are available and do I need to apply? A: The Principal Residence Exemption is the primary tax credit, available only to owner-occupied homes and requires application. You can only receive one such exemption in Michigan. Applications must be filed with the county assessor.

Q: How does the Homestead/Principal Residence Exemption work? A: This exemption removes the 18-mill school operating tax from your principal residence, reducing your tax bill. It does NOT reduce your property's assessed value but eliminates specific school millages. You must apply and can only have one in Michigan.

Q: What happens if I pay late? A: Unpaid winter taxes incur 3% interest starting February 15. Summer taxes also incur penalties and interest if not paid by September 14. For qualified taxpayers, summer tax deferments may be available with proper application.

Q: How often are properties reassessed? A: Michigan law requires properties to be assessed annually, though major reassessments may occur less frequently. Assessment notices are typically sent in early spring with appeal deadlines in March.

Q: Can I pay property taxes online? A: Yes, Bay County offers online tax bill payments. Check the county treasurer's website for accepted payment methods and any associated processing fees.

Q: How do special district taxes work? A: Special districts for services like fire protection, libraries, or road maintenance may levy additional taxes. These appear as separate line items on your tax bill and rates vary by location within the county.

Q: What if I disagree with my assessment? A: Property owners can appeal assessments to the local Board of Review, typically meeting in March. Contact the county assessor's office for specific appeal procedures and deadlines.

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 Taxes | Bay City, MIbaycitymi.gov
02
Tax Doc
2025 Ad Valorem Property Tax Reportmichigan.gov
03
Year Ended December 31, 2024baycountymi.gov
04
Tax Doc
Tax Bill Online Paymentsbaycitymi.gov
05
Tax Doc
Property Tax Processbaycountymi.gov
06
Frequently Asked Questions - CivicPlus.CMS.FAQbaycitymi.gov
07
Forms, Schedules & Informationbaycitymi.gov
08
Principal Residence Exemption | Bay City, MIbaycitymi.gov
09
Appeal Your Assessmentbaycountymi.gov
10
Year Ended December 31, 2018baycountymi.gov
All sources verified as of 2025 Tax Year

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