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Updated 2025 Tax Year

Hillsdale County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
0.9576 mill county rate plus varying local millages (total rates vary significantly by jurisdiction)
1st Due
Jul 1
2nd Due
Dec 1
Exemptions
5+ Available
Section 1

How Property Tax Works

Hillsdale County, Michigan operates under the state's property tax system, where property taxes serve as the primary funding source for local government services, schools, libraries, and special districts. The county's effective tax rate is approximately 0.9576 mill ($0.9576 per $1,000 of taxable valuation) for the county portion, though total tax bills include additional millages from townships, cities, school districts, and special assessments that vary significantly by location.

Property owners should note that actual tax rates differ substantially across Hillsdale County depending on your specific taxing jurisdiction. Urban areas like the City of Hillsdale may have different total millage rates compared to rural township areas due to varying municipal services, school district boundaries, and special assessment districts. The county reassesses all properties annually, with assessments typically reflecting 50% of true cash value as mandated by Michigan law.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $1,000)Description
Hillsdale County Operating$0.9576Basic county services, administration, courts
School DistrictVariesLocal school district millage (varies by district)
Township/CityVariesMunicipal services, varies by jurisdiction
LibraryVariesPublic library funding where applicable
Special AssessmentsVariesFire protection, ambulance, parks, other districts
Total Effective RateVaries by LocationTypically $15-35 per $1,000 of taxable value

Rates shown are for Fiscal Year 2025. Special taxing districts within Hillsdale County create significant rate variations. Contact the Hillsdale County Equalization Department for your specific total millage rate.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Hillsdale 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 Hillsdale County are additional property tax assessments issued when property ownership changes hands or when new construction is completed after the annual assessment date (typically December 31). These taxes capture the difference between the previous assessment and the new assessed value, prorated for the portion of the tax year remaining.

For example, if you purchase a home in June that was previously assessed at $150,000 but now has a market value requiring a $200,000 assessment, you would receive a supplemental tax bill for the increased assessment covering July through December. The supplemental tax would be calculated as: ($200,000 - $150,000) × 0.50 (assessment ratio) × total millage rate × 6/12 months remaining in the tax year.

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Assessed Value (50%): $150,000
  • Less: Homestead Tax Credit: -$6,000 (estimated)
  • Net Taxable Value: $144,000
  • Annual Tax ($25 per $1,000): $3,600
  • Monthly Escrow: $300

Example 2: $600,000 Home

  • Market Value: $600,000
  • Assessed Value (50%): $300,000
  • Less: Homestead Tax Credit: -$6,000 (estimated)
  • Net Taxable Value: $294,000
  • Annual Tax ($25 per $1,000): $7,350
  • Monthly Escrow: $613

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Assessed Value (50%): $500,000
  • Less: Homestead Tax Credit: -$6,000 (estimated)
  • Net Taxable Value: $494,000
  • Annual Tax ($25 per $1,000): $12,350
  • Monthly Escrow: $1,029

Examples use estimated average total millage rate. Actual rates vary by location. Tax credits require annual application and are not automatic.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Hillsdale County require property tax escrow accounts, collecting monthly payments equal to 1/12 of your annual tax bill plus a small cushion. Lenders typically pay your property taxes directly to the county treasurer by the December 31 deadline for the second installment. Your lender should provide an annual escrow analysis showing payments made on your behalf.

Property owners should verify that their lender has paid taxes correctly by checking with the Hillsdale County Treasurer's office, especially after refinancing or switching loan servicers. If you pay taxes directly (without escrow), remember that Hillsdale County follows Michigan's standard payment schedule: summer taxes due July 31 and winter taxes due February 28, with different collecting authorities for each installment.

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 property taxes due in Hillsdale County? A: For fiscal year 2025, summer property taxes are typically due July 31, and winter taxes are due February 28. However, payment schedules can vary by township or city, so verify with your local tax collecting unit.

Q: What tax credits are available and how do I apply? A: The Primary Residence Exemption (Homestead Credit) is the main credit available, requiring annual application with your local assessor. Veterans may qualify for disabled veteran exemptions, and seniors may be eligible for poverty exemptions. All credits require separate applications and are not automatic.

Q: How does the Homestead Credit work? A: The Homestead Credit caps assessment increases to inflation rate or 5% annually, whichever is less, rather than reducing market value. You must file Form 2368 with your local assessor to claim this credit for your primary residence.

Q: When can I appeal my property assessment? A: Assessment appeals must be filed by the second Monday in March with your local Board of Review. You can also appeal to the Michigan Tax Tribunal if unsatisfied with the local board's decision.

Q: What are the penalties for late payment? A: Late payments incur interest and penalties. Summer taxes become delinquent after July 31, and winter taxes after February 28. Delinquent taxes can eventually lead to property forfeiture.

Q: Can I pay property taxes online? A: Contact the Hillsdale County Treasurer's office for current online payment options, as availability varies by collecting unit within the county.

Q: Why does my tax bill include special district charges? A: Special districts for services like fire protection, ambulance, parks, and libraries assess additional millages. These vary significantly by location within Hillsdale County.

Q: How often are properties reassessed? A: Michigan law requires annual reassessment of all properties, though major reappraisals typically occur every few years to ensure assessments reflect current market conditions.

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