[12buttons]

Is Michigan Tax friendly for a retiree?

Interested in North Michigan area - Ottawa County Cities in Ottawa County are:

Spring Lake
Holland
Zeeland
Grand Haven
Coopersville
Ferrysburg
Jenison...

we would like to live not on the lake but in a conservative older populated area without the heavy school districts or subdivisions...quaint and quiet...property taxes on say a ncie older 1940's ish colonial 325k house around an acre max? any breaks on income tax post 65 yrs?

Thanks...

[TaxBait]

Originally Posted by 12buttons

Is Michigan Tax friendly for a retiree?...

Iam in TN and there is no state income tax..and our property taxes are very low - on a 250k house on an acre, taxes are around 800. a year.

I'll answer your other question here. There is generally no income tax for retirees in MI. Pensions and SS are completely exempt as are most other income such as IRAs, 401K etc. up to 80K+. Not fair to the rest of us in my opinion but that's the way it is.
If you are used to $800 property tax in TN you are in for a shock. In the Traverse City area that would run you $3000 - $5000/yr. Many of the downstate metro areas are even higher. There may be some rural areas under $2000 but I don't know of any.

[12buttons]

thanks...property tax is as bad as NYS

[smbriley23]

Originally Posted by 12buttons

Is Michigan Tax friendly for a retiree?



Interested in North Michigan area - Ottawa County Cities in Ottawa County are:

Spring Lake
Holland
Zeeland
Grand Haven
Coopersville
Ferrysburg
Jenison...

we would like to live not on the lake but in a conservative older populated area without the heavy school districts or subdivisions...quaint and quiet...property taxes on say a ncie older 1940's ish colonial 325k house around an acre max? any breaks on income tax post 65 yrs?

Thanks...

Charlevoix, just north of Traverse city and south of Petoskey is exceptionally beautiful and has a large assortment of older colonials for $175-$250k that are within walking distance to downtown harbor area. Not sure of taxes ... you will need to investigate. Tourist traffic (people like me) in the summer are a pain given the small size of downtown area and exceptional beauty of area.

[darstar]

You will get homestead on your place , if , that is your main residence. That will help quite a bit. I have a 4000 sq foot place, on a lake , in the area you are looking , with toy barn ( big ) , 3 acres , big trees, 240 ft. lake frontage , very contemporary ,for sale , @ 410,000 , and the taxes are 4,000 , so , I think its not bad , for , what you get , these days.......

[TaxBait]

Originally Posted by darstar

You will get homestead on your place , if , that is your main residence. That will help quite a bit. I have a 4000 sq foot place, on a lake , in the area you are looking , with toy barn ( big ) , 3 acres , big trees, 240 ft. lake frontage , very contemporary ,for sale , @ 410,000 , and the taxes are 4,000 , so , I think its not bad , for , what you get , these days.......

The maximum homestead tax credit is $1200. It is also difficult to judge tax rates based on what the current owner pays. Generally a new buyer will pay much more due to the "pop-up" tax created by the Headlee amendment. To estimate what a new buyer would pay, compare the current taxable value to the sales price and scale up accordingly. For homes which have not changed hands for some time the taxable value may be much lower than SEV/market value.

[darstar]

Originally Posted by TaxBait

The maximum homestead tax credit is $1200. It is also difficult to judge tax rates based on what the current owner pays. Generally a new buyer will pay much more due to the "pop-up" tax created by the Headlee amendment. To estimate what a new buyer would pay, compare the current taxable value to the sales price and scale up accordingly. For homes which have not changed hands for some time the taxable value may be much lower than SEV/market value.

I lived here only 5 years , and , just had an increase due to upgrading of the home ( restoration ) , the second or third increase in 5 years , so , I think I am up to date tax wise..... Not so , for a lot of people around me however. Some are quite afraid of making any waives at all....hence cometh the taxman . he scours the township weekly , looking......

[TaxBait]

Originally Posted by darstar

I lived here only 5 years , and , just had an increase due to upgrading of the home ( restoration ) , the second or third increase in 5 years , so , I think I am up to date tax wise..... Not so , for a lot of people around me however. Some are quite afraid of making any waives at all....hence cometh the taxman . he scours the township weekly , looking......

Pretty good tax rate then. Around here they would insist the dwelling is worth at least $100/sq. ft. and then add for the property and outbuildings. You're probably looking at a valuation of $800K - $1M for that type of property in the Traverse City area and taxes around $1000/month. Crazy.