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Updated 2025 Tax Year

Grand Traverse County
Property Tax Guide

Everything you need to know about property taxes in Grand Traverse 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% of assessed value, varies significantly by municipality and school district combination
1st Due
Jul 1
2nd Due
Dec 1
Exemptions
5+ Available
Section 1

How Property Tax Works

Grand Traverse County operates under Michigan's property tax system, where taxes are levied based on the taxable value of real and personal property. Property taxes fund essential local services including schools, county government operations, townships, cities, villages, and special districts. The county's property tax rates typically average around 1% of assessed value, though actual rates vary significantly by location within the county due to different combinations of taxing jurisdictions.

Your specific property tax rate depends on which school district, township or city, and special assessment districts serve your property. Grand Traverse County includes multiple municipalities such as Traverse City, various townships, and several school districts, each with their own millage rates. The county assessor determines property values, while individual taxing authorities set their respective millage rates annually. Property taxes are assessed as of December 31st each year and become due the following tax year.

Section 2

What Makes Up Your Tax Bill

ComponentEstimated Rate (Mills)Description
County Operating4-6 millsGeneral county services and operations
School Operating18-24 millsLocal school district operations
School Debt2-8 millsSchool bonds and capital improvements
Township/City1-3 millsMunicipal services and operations
Library1-2 millsPublic library services
Special Assessments0-5 millsFire, parks, drainage, other special districts
Total Estimated Range26-48 millsVaries by specific location within county

Note: These are estimated ranges for the 2024 tax year. Actual rates for the 2025 levy year are still being finalized by local taxing authorities. One mill equals $1 per $1,000 of taxable value. Your specific rate depends on which combination of taxing districts serve your property location.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Grand Traverse 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 Grand Traverse County are additional property tax assessments that occur when there are changes to property ownership, new construction, or improvements completed after the annual assessment date of December 31st. These supplemental bills cover the difference between the original assessment and the new assessed value, prorated for the remaining portion of the tax year.

Common triggers include: purchasing a home that removes previous exemptions, completing new construction or major renovations, adding structures like garages or decks, or changes in property use classification. For example, if you complete a $100,000 home addition in March and your total tax rate is 35 mills, you would owe approximately $291 in supplemental taxes (($100,000 ÷ 2 = $50,000 taxable value increase) × 0.035 tax rate × 9/12 months remaining = $1,312 annual increase × 0.75 = $984 prorated amount). Supplemental tax bills are typically issued within 30-60 days of the assessment change and have separate due dates from regular property taxes.

Example Calculation

Example 1: $300,000 Property

  • Assessed Value: $300,000
  • Taxable Value: $150,000 (50% of assessed value)
  • Less: Principal Residence Exemption: $0 (limits school operating mills only)
  • Net Taxable Value: $150,000
  • Tax Rate: 32 mills (estimated average)
  • Annual Tax: $4,800
  • Monthly Payment: $400

Example 2: $600,000 Property

  • Assessed Value: $600,000
  • Taxable Value: $300,000 (50% of assessed value)
  • Less: Principal Residence Exemption: $0 (limits school operating mills only)
  • Net Taxable Value: $300,000
  • Tax Rate: 35 mills (estimated average)
  • Annual Tax: $10,500
  • Monthly Payment: $875

Example 3: $1,000,000 Property

  • Assessed Value: $1,000,000
  • Taxable Value: $500,000 (50% of assessed value)
  • Less: Principal Residence Exemption: $0 (limits school operating mills only)
  • Net Taxable Value: $500,000
  • Tax Rate: 38 mills (estimated average)
  • Annual Tax: $19,000
  • Monthly Payment: $1,583

Note: Principal Residence Exemption and other tax credits require application and are not automatically applied. These examples use estimated average rates - your actual rate depends on your specific taxing districts.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Grand Traverse County require property tax escrow accounts for borrowers with less than 20% down payment. Your lender collects monthly property tax payments along with your mortgage payment and holds these funds in an escrow account. The lender then pays your property taxes directly to the county treasurer when they become due in December and February.

Lenders typically collect 1/12th of your estimated annual property tax bill each month, plus an additional 2-month cushion as required by federal law. Each year, your lender conducts an escrow analysis to ensure adequate funds are collected, which may result in payment adjustments. Since Grand Traverse County property taxes are due December 31st for summer taxes and February 28th for winter taxes, your lender will make payments on your behalf during these periods. You should receive copies of tax payment receipts and annual escrow statements from your lender for verification purposes.

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 Grand Traverse County property taxes due for the current tax year? A: Summer taxes are due December 31, 2024, and winter taxes are due February 28, 2025. Current year taxes can be paid from July 1st through February 28th without penalty.

Q: What tax credits are available and do they require application? A: Principal Residence Exemption (PRE) is the primary credit, exempting your primary residence from up to 18 mills of school operating taxes. This requires application and is NOT automatic. Poverty exemptions may also be available for qualifying low-income property owners, which also require application.

Q: How does the Homestead/Principal Residence Exemption work? A: The PRE caps assessment increases at the lesser of 5% annually or the rate of inflation, and exempts your primary residence from school operating millage up to 18 mills. You must file Form 2368 with the assessor to claim this credit - it is not automatic.

Q: When are property assessments conducted and how can I appeal? A: Properties are reassessed annually as of December 31st. Assessment notices are mailed by March 1st. You can appeal to the local Board of Review in March, then to the Michigan Tax Tribunal if unsatisfied with the local decision.

Q: What are the penalties for late property tax payments? A: Interest and penalties accrue on unpaid taxes after the due dates. Summer taxes not paid by December 31st incur penalties, and winter taxes not paid by February 28th face additional penalties and potential foreclosure proceedings.

Q: Can I pay property taxes online? A: Yes, Grand Traverse County offers online property tax payments through their official website. You can pay by electronic check or credit card, though credit card payments typically include processing fees.

Q: What are special district taxes and why do they vary by location? A: Special district taxes fund services like fire protection, libraries, parks, and drainage. These vary by location because different areas of the county are served by different combinations of special districts, resulting in different total tax rates even for similar property values.

Q: What happens if my property taxes aren't paid? A: Unpaid property taxes result in a tax lien against the property. After three years of delinquency, properties can enter foreclosure proceedings with a final foreclosure date typically occurring in March of the fourth year.

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
2025 Ad Valorem Property Tax Reportmichigan.gov
02
Tax Doc
Property Tax and Equalization Calendar for 2025michigan.gov
03
County
2025 Grand Traverse County Apportionment Reportgtcountymi.gov
04
Frequently Asked Questions - CivicPlus.CMS.FAQgtcountymi.gov
05
Frequently Asked Questions - CivicPlus.CMS.FAQgtcountymi.gov
06
Tax Doc
Board of Tax Review | Appointed Boardstraversecitymi.gov
07
County
Principal Residence Exemption | Grand Traverse County, MIgtcountymi.gov
08
County
Exemptions | Grand Traverse County, MIgtcountymi.gov
09
New Resident Guidetraversecitymi.gov
10
County
2022 Grand Traverse County Apportionment Reportgtcountymi.gov
All sources verified as of 2025 Tax Year

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