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Updated 2025 Tax Year

Benzie County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
Approximately 0.6981% (6.981 mills), varies by school district and township
1st Due
Jul 1
2nd Due
Dec 1
Exemptions
5+ Available
Section 1

How Property Tax Works

Property taxes in Benzie County, Michigan fund essential local services including schools, county operations, townships, and special districts. The county operates under Michigan's Proposal A framework, which limits annual assessment increases for homestead properties and provides various tax relief programs. Property taxes are collected by local treasurers and distributed to multiple taxing authorities based on voter-approved millage rates.

The effective property tax rate in Benzie County varies significantly by location within the county due to different combinations of school districts, townships, and special taxing districts. Based on the 2025 official proposal list, the county-wide rate is estimated at approximately 0.6981 mills (0.6981%), though individual properties may face rates ranging from 25-35 mills depending on their specific taxing districts. Property owners should verify their exact millage rate by consulting their tax bill or contacting their local assessor, as rates differ between townships and school districts within Benzie County.

Section 2

What Makes Up Your Tax Bill

ComponentRate (Mills)Description
County Operating~6.98Basic county services and operations
School DistrictsVariesLocal school operating millages (varies by district)
Township/MunicipalVariesLocal government services by township
Library DistrictsVariesPublic library systems where applicable
Fire ProtectionVariesLocal fire department services
Special AssessmentsVariesRoad improvements, drain maintenance, other local projects

Rates shown are estimates for levy year 2025-2026 based on available data. Actual combined millage rates typically range from 25-35 mills depending on specific taxing districts. Property owners should refer to their individual tax statements for precise rates, as these vary significantly between townships, school districts, and special taxing districts within Benzie County.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Benzie 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 Benzie County are additional property tax bills issued when there are changes to property ownership, value, or use during the tax year. Common triggers include new construction completion, property splits or combinations, changes from exempt to taxable status, or correction of assessment errors. These supplemental bills represent the prorated tax difference between the old and new assessments for the remaining portion of the tax year.

For example, if a homeowner completes a $100,000 addition in March, and their taxable value increases by $50,000 (due to assessment caps), they would receive a supplemental tax bill for approximately 75% of the year (March through December) on that additional $50,000 in taxable value. At a 30-mill rate, this would result in a supplemental bill of approximately $1,125 ($50,000 × 0.030 × 0.75).

Example Calculation

Example 1: $300,000 Market Value Home

  • Assessed Value: $150,000 (50% of market value)
  • Principal Residence Exemption Applied: $132,000 taxable value
  • Annual Tax (at 30 mills): $3,960
  • Monthly Escrow: $330

Example 2: $600,000 Market Value Home

  • Assessed Value: $300,000 (50% of market value)
  • Principal Residence Exemption Applied: $282,000 taxable value
  • Annual Tax (at 30 mills): $8,460
  • Monthly Escrow: $705

Example 3: $1,000,000 Market Value Home

  • Assessed Value: $500,000 (50% of market value)
  • Principal Residence Exemption Applied: $482,000 taxable value
  • Annual Tax (at 30 mills): $14,460
  • Monthly Escrow: $1,205

Note: These examples assume a 30-mill combined rate and Principal Residence Exemption application. Actual rates vary by taxing district. The Principal Residence Exemption requires annual application and caps assessment increases rather than reducing market value. All tax credits and exemptions require separate applications and are not automatically applied.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Benzie County require property tax escrow accounts, collecting monthly payments throughout the year to cover the annual tax bill. Lenders typically collect 1/12th of the estimated annual tax bill each month, plus an additional cushion amount allowed by federal law. Property taxes in Benzie County are due September 14th, and lenders generally make payments on behalf of homeowners by this deadline.

Homeowners should verify that their lender has current exemption information on file, particularly for the Principal Residence Exemption, as this significantly affects the tax calculation. If you've applied for new exemptions or credits, notify your mortgage servicer to ensure accurate escrow calculations. Property owners can verify tax payments through the Michigan Automated Tax Payment System and should review their annual escrow analysis statements to ensure proper calculation of monthly payments.

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 Benzie County property taxes due for fiscal year 2025-2026? A: Property taxes are due by September 14th. Late payments incur 1% interest charges, and payments can be made online through the Michigan Automated Tax Payment System until 9:00 PM ET the day before the due date.

Q: What tax credits are available and do I need to apply? A: The Primary Residence Exemption is the main tax credit available, requiring annual application to your local assessor. Additional credits may include disabled veteran, senior citizen, and poverty exemptions - all requiring separate applications with specific deadlines and documentation.

Q: How does the Homestead/Principal Residence Exemption work? A: This credit caps annual assessment increases at inflation rate or 5%, whichever is less, rather than reducing your home's market value. You must file an application with your local assessing unit after January 1st but before the day prior to the last day of the board of review meetings.

Q: When are properties reassessed in Benzie County? A: Properties are assessed annually, with assessment notices typically mailed in February or March. Property owners have appeal rights through the local Board of Review, typically meeting in March, and can appeal to the Michigan Tax Tribunal if unsatisfied with local decisions.

Q: What are the penalties for late property tax payments? A: Late payments incur 1% monthly interest charges. Properties become delinquent after September 14th, and extended delinquency can eventually lead to foreclosure proceedings by the county treasurer.

Q: Can I pay my property taxes online? A: Yes, Benzie County participates in the Michigan Automated Tax Payment System, allowing online payments until 9:00 PM ET on the day before the due date. Contact your local treasurer for specific payment options and any associated fees.

Q: Why do property tax rates vary within Benzie County? A: Tax rates vary based on your specific location's combination of school district, township, and special taxing districts. Each entity sets its own voter-approved millage rate, resulting in different total rates across the county.

Q: How are special district taxes determined? A: Special districts for services like fire protection, libraries, or road maintenance levy additional millages approved by voters within those district boundaries. These appear as separate line items on your tax bill and vary based on your property's location and the services provided.

Q: What triggers a supplemental tax bill? A: New construction completion, property ownership changes, splits or combinations, changes from tax-exempt to taxable status, or assessment corrections can trigger prorated supplemental tax bills for the remaining portion of the tax year.

Q: How do I verify my current exemptions and credits? A: Contact your local township or city assessor to verify current exemptions on file. Most exemptions require annual or periodic reapplication and are not automatically renewed, so regular verification ensures you receive all eligible tax relief.

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