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Updated 2025 Tax Year

Luce County
Property Tax Guide

Everything you need to know about property taxes in Luce 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
1.7111 mills county rate, total effective rates 1.5%-2.5% vary by township/school district
Exemptions
5+ Available
Section 1

How Property Tax Works

Property taxes in Luce County, Michigan fund essential local services including schools, county operations, townships, and special districts. The county operates under Michigan's property tax system where properties are assessed at 50% of true cash value, with the taxable value subject to various millage rates from different local jurisdictions.

For the 2025 tax year, Luce County has a certified tax rate of 1.7111 mills (or $1.71 per $1,000 of taxable value), though your actual tax rate will vary depending on your specific location within the county due to additional millages from school districts, townships, cities, and special assessment districts. Property owners should expect effective tax rates typically ranging from 1.5% to 2.5% of assessed value, depending on their local taxing jurisdictions and any applicable tax credits they qualify for and apply to receive.

Section 2

What Makes Up Your Tax Bill

ComponentRate (Mills)Description
County Operations1.7111Base county levy for FY 2025
School DistrictsVariesLocal school operating and debt millages
Township/MunicipalVariesLocal government operations
Library DistrictsVariesPublic library funding where applicable
Fire ProtectionVariesFire department services
Special AssessmentsVariesInfrastructure, drainage, or other local improvements

Note: The total millage rate varies significantly by location within Luce County. Your property tax bill will show the specific combination of millages that apply to your property based on which school district, township or city, and special districts serve your address. Contact the Luce County Equalization Department for your specific total millage rate.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Luce 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 Michigan are typically triggered by changes in property ownership, new construction, or major improvements that increase a property's assessed value during the tax year. When such changes occur, the county assessor may issue a supplemental assessment to capture the additional tax liability for the portion of the year following the change.

For example, if you purchase a home in Luce County in July that was previously exempt from taxation, or if you complete a major home addition, you may receive a supplemental tax bill. The supplemental amount is calculated by applying the current millage rate to the difference between the new and old assessed values, prorated for the remaining months in the tax year. This ensures that all property owners pay their fair share of taxes based on their property's value and the length of time they owned it during the tax year.

Example Calculation

Example 1: $300,000 Property

  • Market Value: $300,000
  • Assessed Value (50%): $150,000
  • Taxable Value (before credits): $150,000
  • Less: Homestead Credit (if applicable): Varies
  • Net Taxable Value: ~$150,000
  • Annual Tax (1.7111 mills + local): ~$2,567 - $3,750
  • Monthly Escrow: ~$214 - $313

Example 2: $600,000 Property

  • Market Value: $600,000
  • Assessed Value (50%): $300,000
  • Taxable Value (before credits): $300,000
  • Less: Applicable Tax Credits: Varies
  • Net Taxable Value: ~$300,000
  • Annual Tax (estimated total rate): ~$5,133 - $7,500
  • Monthly Escrow: ~$428 - $625

Example 3: $1,000,000 Property

  • Market Value: $1,000,000
  • Assessed Value (50%): $500,000
  • Taxable Value (before credits): $500,000
  • Less: Applicable Tax Credits: Varies
  • Net Taxable Value: ~$500,000
  • Annual Tax (estimated total rate): ~$8,556 - $12,500
  • Monthly Escrow: ~$713 - $1,042

Note: Tax credits require separate applications and are not automatic. Contact your local assessor for available credits and application requirements.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Luce County require borrowers to maintain an escrow account for property taxes and insurance. Your lender will collect monthly payments equal to approximately 1/12th of your estimated annual property tax bill and hold these funds to pay your taxes when due. Lenders typically pay property taxes directly to the county treasurer on the April 1st and September 1st due dates.

Your lender will conduct an annual escrow analysis to ensure adequate funds are collected. If property taxes increase due to assessment changes or millage increases, your monthly escrow payment may be adjusted accordingly. You'll receive notice of any escrow payment changes, typically with options to pay any shortage in a lump sum or spread it over 12 months. Property owners should verify that their lender has paid taxes on time by checking with the Luce County Treasurer's office, as borrowers remain ultimately responsible for ensuring taxes are paid even when using escrow services.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
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Section 6

Frequently Asked Questions

Q: When are property taxes due in Luce County for the current fiscal year? A: Property taxes are typically due April 1st for the first installment and September 1st for the second installment. Contact the Luce County Treasurer for exact dates and payment options.

Q: What tax credits are available and do I need to apply? A: Michigan offers various tax credits including the Homestead Property Tax Credit, Senior/Disabled credits, and others. These are NOT automatic - you must file applications with the appropriate office. Contact your local assessor or the Michigan Department of Treasury for current credit programs and application deadlines.

Q: What is the Homestead exemption and how do I get it? A: The Homestead exemption limits annual assessment increases and must be filed with your local assessor. It does not reduce your property's market value but caps how much your taxable value can increase each year. Applications are required and have specific deadlines.

Q: How often are properties reassessed in Luce County? A: Michigan law requires annual assessments, though major reassessments typically occur every few years. You'll receive notice of any significant assessment changes and have appeal rights with specific deadlines.

Q: What are the penalties for late property tax payments? A: Late payments typically incur interest charges and penalties. After a certain period, unpaid taxes may result in tax liens or foreclosure proceedings. Contact the Luce County Treasurer for specific penalty rates and timelines.

Q: Can I pay my property taxes online? A: Many Michigan counties offer online payment options. Check the Luce County Treasurer's website or contact their office for available electronic payment methods.

Q: Why is my tax bill different from my neighbor's on a similar property? A: Tax bills can vary due to different assessed values, applicable tax credits (which require applications), and potentially different special district assessments depending on exact location within the county.

Q: How do I appeal my property assessment? A: Property assessment appeals must be filed with the local Board of Review within specific timeframes, typically in March. Contact your local assessor's office for 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
Millage Rate Calculationmichigan.gov
02
Tax Doc
2025 Certified Tax Rates by Districtin.gov
03
Tax Doc
2025 Ad Valorem Property Tax Reportmichigan.gov
04
Tax Doc
MICHIGAN'S INDIVIDUAL INCOME TAX 2020michigan.gov
05
Frequently Asked Questionsmichigan.gov
06
Tax Doc
Tax Basics, Undocumented Income, and CALC Trickscourts.michigan.gov
07
S03414'15 (H-1) JHM SB-0653, As Passed Senate, June 9 ...legislature.mi.gov
08
Tax Doc
Property Tax Exemptionsmichigan.gov
09
Poverty Exemptionmichigan.gov
10
State
Chapter 207 TAXATION STATE BOARD OF ASSESSORSlegislature.mi.gov
All sources verified as of 2025 Tax Year

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