If you are buying or selling in Canton, property taxes can feel like a moving target. You may hear terms like SEV and Taxable Value and wonder how they change your monthly mortgage payment. You are not alone. In this guide, you will learn what these values mean in Michigan, what happens after a sale in Canton, and how to plan for changes to your escrow and payment. Let’s dive in.
SEV and Taxable Value basics
True cash value and SEV
- Michigan uses True Cash Value to mean market value, or the usual selling price.
- State Equalized Value (SEV) is generally 50% of that market value. You can confirm these definitions in the Michigan Tax Tribunal glossary of terms.
Learn more: Michigan Tax Tribunal glossary
Taxable Value and Proposal A
- Taxable Value is the number used to calculate your actual property tax bill.
- Since Proposal A, it usually increases only by inflation or 5%, whichever is lower, until a transfer of ownership.
- When a home sells, Taxable Value typically resets to equal SEV for the new owner.
Get the overview: Proposal A and taxable value basics
Why it matters in Canton
- A long-time owner may have a Taxable Value far below SEV.
- After a sale, the buyer’s Taxable Value often “pops up” to SEV, which can increase the next year’s tax bills.
- If you escrow taxes, this change can raise your monthly mortgage payment.
After a sale in Canton
Uncapping on transfer
- Most transfers of ownership “uncap” Taxable Value so it resets to SEV for the new owner.
- After that reset, future yearly increases are capped again by inflation or 5% until the next transfer.
Authoritative terms: Michigan Tax Tribunal glossary
Other changes to Taxable Value
- New additions, omitted property, or property loss can change Taxable Value outside the annual cap.
- These events are handled through Michigan’s assessment process each year.
Mortgage escrow impacts
Why payments can increase
- Lenders estimate your initial escrow using recent tax bills.
- If your taxes rise after uncapping, your servicer will find a shortage during escrow analysis and can raise your monthly escrow, offer a repayment plan, or request a lump sum.
How servicers handle shortages: CFPB mortgage servicing FAQs
Timing and escrow analysis
- Your servicer completes an initial and then annual escrow analysis.
- If the first analysis happens after taxes increase, you may see both a catch-up amount for the shortage and a higher monthly escrow going forward.
- Asking for recent tax documents before closing can help reduce surprises.
Simple tax example
- General formula: annual tax is roughly Taxable Value divided by 1,000, multiplied by total mills.
- If Taxable Value goes from $150,000 to $300,000 and the total mills are 40.0000, estimated tax could rise from about $6,000 to $12,000 per year, which is about a $500 increase per month in escrow.
- Actual totals depend on your parcel’s millage and exemptions.
Definitions reference: Michigan Tax Tribunal glossary
Canton tax calendar
Assessments and appeals
- Canton mails Assessment Notices in late February. You can appeal to the Board of Review in March, with additional meetings sometimes in July and December.
- Use the Assessor’s page for instructions and deadlines.
Details: Canton Assessor’s Office
Billing and millage details
- Canton issues tax bills twice a year, in summer and winter. The Treasurer’s page lists due dates, payment options, and penalties.
- You can see plain-English breakdowns of common line items on your tax bills, including State Education Tax, township services, and school items.
Start here: Canton Property Taxes
Decode your bill: A Closer Look at your Summer Tax Bill
Action steps for buyers
- Request the seller’s latest summer and winter tax bills and their most recent Assessment Notice. Cross-check with the Canton Treasurer if needed.
- Budget for an escrow increase in the first year after closing. Ask your lender how they handle shortages and whether you can spread repayment over time.
- If you will live in the home as your principal residence, file the Principal Residence Exemption (PRE) by the statutory deadlines so the school operating millage exemption applies as soon as allowed.
- Consider adding extra funds to your initial escrow at closing to reduce the chance of a shortage.
Helpful links: Canton Property Taxes, Michigan PRE guidelines
Action steps for sellers
- Share your most recent Assessment Notice and both summer and winter tax bills with buyers and the closing team.
- Explain that the buyer’s Taxable Value will likely reset to SEV after transfer, which can increase their taxes.
- If you have the PRE, confirm with the Assessor whether it will be rescinded or transferred based on timing, and complete any required forms.
Resources: Canton Property Taxes, Canton Assessor’s Office
Appeals and who to call
- If you believe your assessment is not accurate, follow the appeal steps on the Canton Assessor’s page and watch the March Board of Review deadlines.
- For questions about your bill or payments, contact the Treasurer’s Office. For value questions or PRE filings, contact the Assessor.
- For state-level definitions and next steps, the Michigan Tax Tribunal is a reliable resource.
Learn more: Canton Assessor’s Office, Michigan Tax Tribunal glossary
Get local guidance
Understanding SEV, Taxable Value, and escrow helps you plan a smooth move in Canton. If you want a clear estimate of how a purchase or sale could affect your bottom line, let’s talk. You will get trusted, high-touch guidance from a seasoned Metro Detroit broker backed by a full-service team. Connect with Eddie Mallad to start a plan that fits your goals.
FAQs
What is SEV and how is it set in Michigan?
- SEV is generally 50% of a property’s market value, also called True Cash Value, as defined by Michigan law. See the state’s glossary for clear definitions.
How does uncapping affect my taxes after buying in Canton?
- When ownership transfers, Taxable Value usually resets to SEV, which can increase your tax bill compared with the seller’s capped value. Your escrow and monthly payment may rise after analysis.
When are Canton tax bills mailed and due?
- Canton issues summer and winter bills. The Treasurer’s page lists current due dates, payment methods, and penalty rules each year.
What is the Principal Residence Exemption (PRE)?
- If you occupy the home as your principal residence and file by the deadlines, the PRE typically exempts you from the school operating millage on your tax bill.
How will a tax increase change my mortgage escrow payment?
- Your servicer will analyze your escrow and, if there is a shortage, can raise your monthly payment, allow repayment over time, or request a lump sum, with required notices to you.
