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Updated 2025 Tax Year

Isabella County
Property Tax Guide

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

9 Official Sources
8 min read
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Quick Facts
Tax Rate
35-45 mills (3.5% to 4.5% of assessed value) - varies by municipality and school district
Exemptions
5+ Available
Section 1

How Property Tax Works

Isabella County, Michigan operates under Michigan's property tax system, which serves as the primary funding source for local government services, schools, libraries, and special districts. Property taxes in Isabella County fund essential services including public education, county operations, municipal services, fire protection, and various special assessments for infrastructure improvements.

The effective property tax rate in Isabella County varies significantly by location within the county due to different combinations of taxing jurisdictions and special districts. Based on available data, rates typically range from approximately 35-45 mills (3.5% to 4.5% of assessed value), though this can vary considerably depending on your specific municipality, school district, and any special assessment districts that apply to your property. Your actual tax rate depends on which city, township, school district, and special taxing districts serve your specific address within Isabella County.

Section 2

What Makes Up Your Tax Bill

ComponentEstimated Rate RangeDescription
County Operating4-6 millsIsabella County general operations, courts, sheriff
School District18-24 millsLocal school district operations and voter-approved bonds
Municipality2-8 millsCity or township services (varies significantly by location)
Intermediate School District1-2 millsRegional educational services
Community College2-3 millsMid Michigan College levy
Library0.5-2 millsPublic library services (where applicable)
Special AssessmentsVariesFire protection, drainage, road improvements

Note: These rates apply to the FY 2025-2026 levy year and are estimates based on available data. Actual rates vary significantly by location within Isabella County. Contact the Isabella County Equalization Department or Michigan Department of Treasury for current specific rates for your property's taxing jurisdictions using Form 614/L-4029.

Section 3

When Are Property Taxes Due?

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

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 Isabella County are additional property tax bills issued when there are changes to property ownership, value, or use between regular assessment cycles. Common triggers include new construction completion, property improvements that increase value, ownership transfers that remove previous exemptions, or corrections to assessment errors.

Supplemental taxes are calculated based on the difference between the old and new assessed values, multiplied by the applicable tax rate, prorated for the portion of the tax year remaining. For example, if new construction adds $50,000 in assessed value and is completed in January, and your total tax rate is 40 mills, the supplemental tax would be approximately $2,000 ($50,000 × 0.040) for the full year. The Isabella County Treasurer's office is responsible for billing supplemental taxes along with monthly interest computed from the date the taxes were originally due.

Example Calculation

Example 1: $300,000 Market Value Home

  • Assessed Value: $150,000 (50% of market value)
  • Less: Principal Residence Exemption (PRE): ~$7,500 reduction in taxable value
  • Net Taxable Value: $142,500
  • Annual Tax (at 38 mills): $5,415
  • Monthly Escrow: $451

Example 2: $600,000 Market Value Home

  • Assessed Value: $300,000
  • Less: Principal Residence Exemption (PRE): ~$7,500 reduction in taxable value
  • Net Taxable Value: $292,500
  • Annual Tax (at 38 mills): $11,115
  • Monthly Escrow: $926

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

  • Assessed Value: $500,000
  • Less: Principal Residence Exemption (PRE): ~$7,500 reduction in taxable value
  • Net Taxable Value: $492,500
  • Annual Tax (at 38 mills): $18,715
  • Monthly Escrow: $1,560

Note: Principal Residence Exemption requires application and approval. Tax rates vary by specific location within Isabella County.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Isabella County require property tax escrow accounts for borrowers with less than 20% down payment or upon borrower request. The lender collects monthly property tax payments along with principal and interest, depositing these funds into an escrow account. Isabella County property taxes are due in four installments (April 15, June 15, September 15, and January 15), and lenders typically pay these on your behalf from the escrow account.

Lenders must provide annual escrow analysis statements showing projected tax payments and account balances. Property owners should verify that lenders are using current tax bills and notify them promptly of any changes in assessed value, exemptions, or special assessments. If your property taxes increase significantly due to reassessment or new special districts, your monthly escrow payment may need adjustment to prevent shortfalls.

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 Isabella County for FY 2025-2026? A: Property taxes are due in four installments: April 15, June 15, September 15, and January 15 of the following year. Late payments incur penalties and interest.

Q: What tax credits are available and do I need to apply? A: The Principal Residence Exemption (PRE) is the main tax credit, reducing taxable value by approximately $7,500. Veterans may qualify for disability exemptions, and seniors may qualify for poverty exemptions. ALL credits require application - none are automatic.

Q: How does the Homestead exemption work? A: Michigan's Homestead exemption (PRE) caps annual assessment increases at 5% or inflation rate, whichever is lower, for owner-occupied principal residences. You must file an application with the Isabella County Assessor to qualify.

Q: When are properties reassessed and how do I appeal? A: Michigan requires assessments to reflect 50% of market value. Assessment notices are mailed by March 1. You can appeal to the local Board of Review (typically meets in March), then to the Michigan Tax Tribunal if unsatisfied.

Q: What are the penalties for late payment? A: Late payments incur penalties and monthly interest charges computed from the original due date. Contact the Isabella County Treasurer for specific penalty rates.

Q: Can I pay property taxes online? A: Contact the Isabella County Treasurer's office for current online payment options and accepted methods.

Q: What determines my special district taxes? A: Special districts vary by location and may include fire protection, drainage, library, and road improvement districts. Your specific combination depends on your property's location within Isabella County.

Q: How do I apply for the Principal Residence Exemption? A: File an application with the Isabella County Assessor's office. The exemption must be renewed if you move or the property use changes. Contact the Isabella County Equalization Department for forms and deadlines.

Verified Sources

Backed by 9 Official Government Sources

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

01
Millage Rate Calculationmichigan.gov
02
Tax Doc
2025 Ad Valorem Property Tax Reportmichigan.gov
03
Tax Doc
Form 614/L-4029 Tax Rate Requestsmichigan.gov
04
Tax Doc
Ad Valorem Property Tax Reportmichigan.gov
05
Tax Doc
When are the quarterly estimated tax payments due?michigan.gov
06
Filing and Payment Due Datesmichigan.gov
07
Page 1 of 10 151/1920 FY 2019-20 SUPPLEMENTAL S.B. 151legislature.mi.gov
08
Principal Residence Exemption Audit Reportmichigan.gov
09
Principal Residence Exemption Audit Reportmichigan.gov
All sources verified as of 2025 Tax Year

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