How Michigan property taxes work – SEV state equalized value – part 6

So many people are confused on how Michigan property taxes work, one of the keys is to understand what SEV (state equalized value) definition is.

SEV (STATE EQUALIZED VALUE) – is 1/2 the market value the city assessor assigns your property.  So if the the city assessor thinks your house is worth $320,000 then your SEV would be $160,000.

  • SEV is not the amount the city bases your taxes.
  • SEV is not what you can sell your Metro Detroit home for.
  • SEV is just what the city assessor thinks your house is worth.  So just by multiplying the SEV by 2 will not give you what you can sell your house for or what it will appraise for.

Your city or township assessor determines the State Equalized Value SEV based on a formula and other recently sold homes that are comparable.  But remember when you get your tax statement that SEV is only what the city thinks it is worth not what your taxes are based on.  The Taxable Value is what you taxes are based on.

When you buy a house the taxes you see are based on the taxable value.  But next year the taxable value resets to the SEV.  So if the taxable value was $110,000 and the SEV was $200,000 then the taxes will be going up.  If the SEV and the taxable value are the exact same number then your taxes won’t go up when you buy the house unless the city raises the State Equalized Value during the year.

The Michigan property tax assessment system is a little confusing to many people.  I hope this series helps you understand it a little more.

Russ Ravary your Metro Detroit Realtor

Lake Sherwood Commerce Township MI

Ah the meddling mother

Earnest money deposit – home buyer tips

White Lake White Lake Twp MI

Michigan Real Estate Investors


Homes for sale in Plymouth MI





Posted in Millage rates and Property taxes

Search Homes



The data relating to real estate for sale on this website comes in part from the IDX program of Realcomp. Real estate listings held by brokerage firms other than Real Estate One are marked with the IDX logo and detailed information about them includes the name of the listing brokers.

All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Real Estate One shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. IDX information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.