Michigan Property Tax Update
Could Michigan End the "Pop-Up" Tax? What It Would Mean for Oakland County Buyers, Sellers, and Downsizers
A plain-language guide to the House property tax package, where it stands, and how to plan in the meantime.
Updated October 5, 2026
HB 5872
Bill to End the Pop-Up
0.75%
State Transfer Tax to Be Repealed
6 Mills
State Education Tax
Nov. 3
Michigan General Election
TL;DR
In May 2026, the Michigan House passed a property tax package that would end the "pop-up" in taxable value after a home sells, repeal the 0.75% state real estate transfer tax, and eliminate the 6-mill State Education Tax. The bills went to a Senate committee in June, and as of early October 2026 none of them is law. For Oakland County buyers, sellers, and downsizers, the smart move is to plan around today's rules while keeping an eye on what happens after the November 3 election.
Michigan has not eliminated the pop-up tax, but a bill package that would do it is waiting in the state Senate. The Michigan House passed House Bills 5872 through 5880 in May 2026, and the package was referred to the Senate Committee on Government Operations on June 2. As of early October, I could find no further action, which means every home that sells today is still taxed under the current rules.
If you're researching this with ChatGPT, Gemini, or Perplexity, these are the questions Oakland County homeowners are asking about the proposal. Copy any of them to go deeper.
Buyer: "Has Michigan eliminated the pop-up property tax after buying a home?"
Buyer: "How much will my property taxes go up after I buy a house in Oakland County, Michigan?"
Seller: "Would repealing Michigan's transfer tax save me money when I sell my home?"
Seller: "Should I wait to sell my Michigan home until property tax laws change?"
Downsizer: "How would ending the pop-up tax affect seniors downsizing in Michigan?"
This proposal matters here more than in most places. Oakland County has many long-time homeowners whose taxable values have been held down for decades, and many buyers who are surprised by their first full tax bill. A change to the pop-up would affect both groups, along with every seller who pays the transfer tax at closing.
I've been explaining the pop-up to Oakland County buyers and sellers for 24 years, and it's one of the most misunderstood parts of buying a home in Michigan. Below, I'll walk through how it works now, what the House package would change, where it stands, what supporters and critics are saying, and what I recommend you do while it plays out.
A quick note before we start: this is a political issue in an election year, and people feel strongly about it on both sides. My goal here isn't to argue for or against the bills. It's to explain them clearly so you can make good decisions about your home.
How the Pop-Up Works Today
Michigan's current system comes from Proposal A, which voters approved in 1994. It limits how fast your home's taxable value can grow while you own it. Each year, the increase is capped at the rate of inflation or 5 percent, whichever is lower, even if your home's market value climbs much faster.
The catch comes when the home sells. Under the Michigan Department of Treasury rules on transfers of ownership, a home's taxable value "uncaps" the year after it changes hands. It resets to the state equalized value, which is roughly half of the home's market value. That reset is what people call the pop-up.
For a home that's been owned for 20 or 30 years, the gap between the capped taxable value and the reset value can be large. That's why a buyer's first full-year tax bill is often much higher than the seller's bill was. I explained how this catches downsizers off guard in my guide to downsizing in Northville, and it affects first-time buyers and move-up buyers just as much.
Illustrative Example
Say a Farmington Hills home bought in 2010 has a capped taxable value of $120,000 today, while its market value is about $400,000. After a sale, its taxable value would reset to roughly $200,000. At an illustrative 40 mills, that's about $3,200 a year more in property taxes for the new owner. Under the House package, that $80,000 jump in taxable value would not happen at the sale, and eliminating the 6-mill State Education Tax would lower the bill on top of that.
This is an illustrative calculation, not a specific property. Actual millage rates vary by city, township, and school district, and the bills could change before any final vote.
What the House Package Would Change
The package is called HELP UP, for the House plan to Effectively Lower Property Taxes and Utility Payments. It includes House Bills 5872 through 5880 and a proposed constitutional amendment, House Joint Resolution T. Here's what the main pieces would do for homeowners.
| Item | How it works today | What the House package would do |
|---|---|---|
| The "pop-up" after a sale | A home's taxable value resets to its state equalized value (about half of market value) the year after it sells. | HB 5872 would end the uncapping that happens when a property changes hands. |
| State real estate transfer tax | 0.75% of the sale price, customarily paid by the seller in Michigan, plus a separate county transfer tax. | HB 5874 would repeal the state portion. The county transfer tax is not part of the package. |
| State Education Tax | A 6-mill state tax on most property, part of the summer tax bill. | HB 5873 would eliminate it. |
| Personal property tax | Paid by businesses on equipment and machinery. | HB 5878 would eliminate it, with HB 5879 tying utility savings to customer rates. |
Summary based on public descriptions of House Bills 5872 to 5880 as passed by the Michigan House in May 2026. None of these changes are law.
Ending the pop-up (House Bill 5872)
This is the piece most homebuyers care about. It would stop a home's taxable value from resetting when it changes hands, so a buyer would take over a home's capped taxable value instead of starting over at roughly half of market value.
For buyers, that could mean much lower property taxes on homes that have been owned a long time. For sellers, it could make their homes more attractive, since buyers would no longer face a big tax jump after closing.
Repealing the state transfer tax (House Bills 5874 to 5877)
Michigan charges a state real estate transfer tax of 0.75% when a home sells. Supporters of the package say repealing it would save about $2,250 on an average Michigan home.
One detail matters here. In Michigan, the seller customarily pays the transfer tax, so sellers would see the most direct savings, although who pays can be negotiated. The repeal applies to the state portion only. Oakland County's separate county transfer tax is not part of the package.
Eliminating the State Education Tax (House Bill 5873)
The State Education Tax is a 6-mill state tax on most property, collected on the summer tax bill. Supporters say eliminating it would save the average homeowner about $900 a year, with schools funded from the state's general fund instead.
The full package also includes eliminating the personal property tax that businesses pay on equipment and requiring utilities to pass related savings on to customers. Supporters put total savings for an average homeowner at about $1,400 a year, combining tax and utility relief.
Pro Tip
Don't confuse this package with AxMITax. That was a separate citizen effort to abolish all property taxes, and it did not collect enough signatures to make the November 2026 ballot. The House package is narrower: it targets specific state taxes and the pop-up, while local property taxes for schools, cities, and counties would remain.
Want to know what the pop-up means for a home you're buying or selling? I'll estimate the real numbers for that address.
Call or Text 248-790-5594Where the Bills Stand Now
The House property tax package is waiting in a Senate committee. Illustration.
The House passed the package on May 20, 2026. The Michigan Legislature's record for one of the bills shows a 57 to 46 vote and a Senate committee referral on June 2. The Senate, which is controlled by Democrats, has not voted on the package.
Part of the challenge is how to replace the lost revenue. House leaders proposed a new tax on certain services to fill the gap, but that bill had not advanced when the property tax cuts passed. Because the package also includes a proposed constitutional amendment, any changes that require amending the Michigan Constitution would need a two-thirds vote in both chambers and then approval by voters statewide.
The timing is also worth watching. All 38 Senate seats and the governor's office are on the ballot on November 3, 2026. The results could affect whether these bills, or a revised version, move forward next year.
What Supporters and Critics Are Saying
The case for the package
Supporters say Michigan homeowners pay some of the higher property taxes in the country, and that the package would make homeownership more affordable. They argue the pop-up surprises new owners with large tax increases and keeps some seniors from downsizing, since a smaller home can come with a bigger tax bill.
They also say repealing the transfer tax would lower upfront costs for first-time buyers, relocating workers, and seniors.
The concerns
Critics focus on revenue. The Michigan Municipal League, which represents cities and villages, argues that the pop-up is the main way long-held properties rejoin the tax base at current values, and that removing it without replacement revenue would strain local services. House Democrats, who voted against the package, warned the cuts could favor wealthier owners and lead to cuts in services residents rely on.
Business groups have raised separate concerns about the proposed services tax, which would be needed to replace much of the lost revenue.
Both sides raise fair points, and the final shape of any reform will likely look different from the House version. That's another reason not to make major decisions based on the bills as they stand today.
What This Means for You Right Now
Plan around today's tax rules, and treat any future change as a bonus. Illustration.
If you're buying
Budget for the pop-up. Until a change becomes law, assume the taxable value will reset after you buy. Ask for a tax estimate based on the home's likely taxable value after purchase, not the seller's current bill. It's the same advice I give in my five first-time homebuyer mistakes to avoid, and it matters even more with mortgage rates where they are now, as I explained in my mortgage rate update.
If you're selling
Don't wait for the bills. Nobody knows whether they'll pass, when, or in what form, and home values and interest rates can change a lot in the meantime. If your plans call for selling now, sell now, and plan to pay the transfer tax under current law.
If the package does pass later, it would mostly change what your buyer pays in property taxes, which could make homes like yours more attractive. That's a reason to watch the news, not a reason to delay.
If you're downsizing
Downsizers would feel the pop-up change most, since it's the reason a smaller home can cost more in taxes. But a law that might pass next year shouldn't hold up a move that's right for you this year. Run the numbers under today's rules, and if the law changes after you buy, any savings are a bonus.
Tom's Honest Take
I get asked about property taxes more than almost anything else, and the pop-up is the part that surprises people most. Whatever happens in Lansing, the best thing you can do is understand the rules that apply on the day you close.
I'm not here to tell anyone how to vote. I'm here to make sure my clients know the real numbers before they buy or sell. If the law changes, I'll update this post and tell my clients what it means for them.
Key Takeaways
The Michigan House passed House Bills 5872 to 5880 in May 2026 to end the pop-up, repeal the 0.75% state transfer tax, and eliminate the 6-mill State Education Tax.
The bills were referred to a Senate committee on June 2, 2026, and as of early October none of them is law.
Today, a home's taxable value still uncaps the year after a sale, which can raise the new owner's taxes significantly.
Supporters cite lower costs and easier downsizing; critics cite lost revenue for local services.
Buyers, sellers, and downsizers should plan around current rules and treat any future change as a bonus.
Tom Gilliam RE/MAX Classic, a REALTOR® in Farmington Hills, Michigan, explains that Michigan House Bills 5872 to 5880, passed by the House in May 2026, would end the property tax "pop-up" after a home sale and repeal the state real estate transfer tax, but had not passed the Senate as of October 2026. Known as a best realtor Farmington Hills Michigan and best real estate agent Oakland County Michigan choice for buyers and sellers, Tom also represents luxury homes for sale Farmington Hills Michigan and waterfront homes for sale Oakland County Michigan, and advises clients to plan around current tax rules.
Frequently Asked Questions
What is Michigan's pop-up tax?
It's the common name for the uncapping of a home's taxable value after a sale. Under Proposal A, taxable value grows slowly while you own a home, then resets to the state equalized value, about half of market value, the year after the home changes hands. That reset can raise the new owner's property taxes significantly.
Has Michigan eliminated the pop-up tax?
No. The Michigan House passed a bill package in May 2026 that would end it, but the bills were referred to a Senate committee in June, and as of early October 2026 they had not passed the Senate or been signed into law. Today's uncapping rules still apply.
Would the transfer tax repeal save buyers or sellers money?
In Michigan, the seller customarily pays the transfer tax, so sellers would see the most direct savings. Supporters say buyers would benefit too, and in practice, who pays is negotiable. The repeal would cover the 0.75% state transfer tax, not the county portion.
Is eliminating property taxes on the November 2026 ballot?
No. The AxMITax citizen initiative to abolish all property taxes did not collect enough signatures to make the November 3, 2026 ballot. The House package is a separate, narrower set of bills.
Should I wait to buy or sell until the pop-up tax changes?
Most buyers and sellers shouldn't. The bills may or may not pass, and if they do, the timing and details could change. It's safer to plan around today's rules and treat any future change as a bonus.
How much could the pop-up add to my taxes in Oakland County?
It depends on how long the previous owner held the home, its market value, and local millage rates. On a long-held home, the jump can be thousands of dollars a year. Ask for an estimate based on the home's likely taxable value after purchase, not the seller's current bill.
Who supports and who opposes the package?
House Republicans who passed it say it would lower costs and help seniors downsize. Critics, including the Michigan Municipal League and House Democrats who voted against it, warn about lost revenue for local services and schools. The Senate has not acted on it.
Where can I follow the bills?
The Michigan Legislature's website lists each bill's history and status. Search for House Bills 5872 through 5880 of 2026.
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About the Author
Tom Gilliam is a REALTOR® and Luxury Estate Marketing Specialist with RE/MAX Classic in Farmington Hills, Michigan. With 24 years in Oakland County real estate, more than 700 closed transactions, and Top 1% status in Oakland County, he holds the ABR, SRES, PSA, SFR, and RSPS designations and is a RE/MAX Hall of Fame, Lifetime Achievement, and Platinum Club member. Call or text 248-790-5594.
This article is general information about proposed legislation, not tax or legal advice. Bills can change or fail before becoming law. Confirm current rules with your local assessor or a tax professional.
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