Michigan vs Florida Property Tax Comparison (2026)

OVERVIEW

Florida has significantly lower property taxes than Michigan — 0.86% average versus Michigan's 1.32%. On a $400,000 home, that saves approximately $1,840/year in property tax by moving to Florida. Combined with Florida's lack of state income tax (versus Michigan's flat 4.25%), most Michigan househol…

Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.

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COUNTRY A

Michigan

TAX RATE

1.32%

Avg Effective Rate

Proposal A (1994) caps assessment growth at 5% or CPI; millage rates vary by district

☀️

COUNTRY B

Florida

TAX RATE

0.86%

Avg Effective Rate

Save Our Homes 3% cap for homesteaded residents; no income tax

Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.

GROSS INCOME

🏔️ MI TAX

☀️ FL TAX

SAVINGS

10-YEAR

$250,000 home

$3,300

$2,150

$1,150

$11,500

$350,000 home

$4,620

$3,010

$1,610

$16,100

$400,000 home

$5,280

$3,440

$1,840

$18,400

$500,000 home

$6,600

$4,300

$2,300

$23,000

$650,000 home

$8,580

$5,590

$2,990

$29,900

$800,000 home

$10,560

$6,880

$3,680

$36,800

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Michigan Pros & Cons

+ PROS

Lower home prices than Florida in most markets
Proposal A caps annual assessment growth
Principal residence exemption (18 mills off school operating tax)
Farmland and conservation exemptions available

− CONS

Property tax rate 54% higher than Florida
State income tax at flat 4.25%
Harsh winters raise heating and maintenance costs
Detroit metro has some of the highest effective rates in the Midwest

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Florida Pros & Cons

+ PROS

No state income tax — saves $2,000–$10,000+/year
Average effective property tax rate 35% lower than Michigan
Homestead exemption: $50,000 off assessed value
Save Our Homes: 3% annual cap for primary residences

− CONS

Hurricane/windstorm insurance can add $2,000–$5,000+/year
New buyers pay full market value until homestead filed
Non-homestead (rental) properties reassessed annually
Flood insurance required in some coastal/low-lying areas

FAQ

Frequently Asked Questions

How much do Michigan snowbirds save on property tax by moving to Florida?

On a $400,000 home, moving from Michigan to Florida saves approximately $1,840/year in property tax alone (Michigan ~$5,280 vs Florida ~$3,440). Add in income tax: Michigan charges a flat 4.25% on income; Florida charges 0%. A retiree with $70,000 in taxable income saves approximately $2,975 in Michigan state income tax by becoming a Florida resident. Combined property and income tax savings are typically $4,000–$8,000+/year for middle-income Michigan retirees moving to Florida.

What is Michigan's Proposal A property tax protection?

Michigan's Proposal A (1994) caps the annual increase in a home's State Equalized Value (SEV) — the taxable value — at either 5% or the rate of inflation, whichever is lower. When a property is sold, it resets to full SEV. This means longtime Michigan owners often pay tax on a value well below their home's market price. However, buyers inherit the full market assessment, meaning new purchases in appreciating markets can carry high tax bills. Unlike California's Prop 13, Proposal A does not cap the base rate at 1% — Michigan's underlying millage rates are higher.

Where in Florida has the lowest property taxes?

Florida property tax rates vary significantly by county and city. Lower-tax areas: Walton County (Northwest FL, Destin area) approximately 0.6–0.7% effective; Dixie, Jefferson, and Taylor counties (rural North FL) under 0.8%. Higher-tax urban areas: Broward County (Fort Lauderdale) approximately 1.0–1.1%; Miami-Dade approximately 1.0%; Palm Beach approximately 0.9%. For retirees, areas like Sarasota (~0.8%), Naples/Collier County (~0.7%), and Southwest Florida generally offer competitive property tax rates alongside desirable amenities.

Does Michigan have any property tax exemptions for retirees?

Michigan's principal residence exemption (PRE) removes 18 mills of school operating tax from a primary home — typically saving $1,800–$3,000/year depending on value. For seniors: the Michigan Homestead Property Tax Credit provides a credit of up to $1,600 for qualifying low-to-moderate income homeowners (income below $63,000 in 2024), including retirees. For those 65+, there is a Senior Citizen Homestead Exemption in some municipalities. However, these are relatively modest compared to Florida's income tax advantage for retirees — most Michigan retirees still save substantially by relocating to Florida.

🏔️ COUNTRY A Michigan VS ☀️ COUNTRY B Florida