Assessed Value is approximately 50% of your property’s true cash value, as estimated by the assessor as of Tax Day. For 2026, Tax Day is December 31, 2025. You have the option to supply evidence and appeal your property’s current assessed value at the March Board of Review.
After all appeals are heard, the March Board of Review confirms the assessment roll. That roll is then subject to review by the county and state. Following those reviews, State Equalized Value (SEV) is set. SEV is then considered to be 50% of Market Value or True Cash Value as determined as of Tax Day.
The Capped Value (CV) formula uses the Inflation Rate Multiplier (IRM), the previous year’s taxable value, and any losses or additions to determine the new Taxable Value (TV). The 2026 IRM is 1.027 or 2.7%. Losses are physical losses to the property; additions are physical additions to the property.
The 2026 Capped Value formula is: (2025 TV – Losses) x IRM + Additions = 2026 Taxable Value.
Taxable Value (TV) is the lesser of Assessed Value (AV) and Capped Value. In the year following a non-exempt transfer of ownership (typically a sale), the TV will uncap and become equal to the AV. In Michigan, taxes are based on the TV, not on the AV. The TV can never be higher than the AV.
True Cash Value (TCV) has been defined by Michigan courts to be equal to Market Value. Market Value can be defined as the most probably price, as of a specific date, where both buyer and seller are knowledgeable, and neither is under duress.
The state constitution requires properties to be assessed at 50% of market value. This value is affected annually by market forces. However, annual Taxable Value (TV) increases are limited to either 5% or the statewide Inflation Rate Multiplier (IRM), whichever is less. For 2026, the IRM is 1.027 or 2.7%. If, for example, your neighborhood’s value increased by 10% based on housing market activity, your AV would increase by 10% but your TV will only increase by 2.7% for 2026. This assumes the property did not transfer ownership in 2025, which triggers an uncapping of the TV (unless exempt) and often results in a larger TV increase (due to the TV being set equal to the AV).
Assessors are not to set a property’s true cash value based on any single sale. A mass appraisal method is used which analyzes a large sample of qualified sales that occurred within a defined sale study period. MCL 211.27(6) states that, “the purchase price paid in a transfer of property is not the presumptive true cash value of the property transferred. In determining the true cash value of transferred property, an assessing officer shall assess that property using the same valuation method used to value all other property of that same classification in the assessing jurisdiction.”
This means that an assessor must perform a market study, analyzing all arm’s-length sales that occurred within the municipality within specified dates, to determine the market pattern during that time period. Neighborhood values are then adjusted accordingly.
The State Tax Commission requires counties to perform preliminary equalization using a 12-month and 24-month sales study for each community. The study that favors the taxpayer will be used. For 2026, the City of Novi will use a 24-month study – from April 1, 2023, to March 31, 2025, including approximately 2,000 sales. The 24-month sales study benefits the taxpayer because it considers older sales, when market values were slightly lower.
Per state law, the only time you may appeal your current assessment is each year at the March Board of Review, which begins the second Monday in March. The annual Notice of Assessment is mailed in mid-February.
If you disagree with your tentative assessed value, you may submit a completed Board of Review Petition (PDF) and make an appointment to appear before the Board of Review. Petition forms are available online or from the Assessing Department.
State law provides the next level of appeal through the Michigan Tax Tribunal (MTT).
For residential property appeals, submit the Michigan Tax Tribunal Residential Property Appeal Petition to the Tribunal at 611 W. Ottawa St., Lansing, MI 48933, no later than July 31, after appearing before the March Board of Review.
You must first appeal your residential property value to the March Board of Review to be eligible for an MTT hearing.
The deadline to appeal a commercial or industrial real property value to the MTT is May 31. If the deadline falls on a day when the Tribunal offices are closed, the petition may be filed on the next business day.
State law provides that a protest of the value of your residential property can only be made at the March Board of Review. MCL 211.53b does not give the July or December Boards of Review the authority to oversee valuation appeals.
The State of Michigan does not offer special property tax relief based on age. However, an annual Poverty Exemption based on income and assets may be available. Applications are available from the Assessing Department and require Board of Review approval.
View Poverty Exemption Application and Eligibility Information
A deferral of summer taxes may be available to property owners who qualify. Please contact our Treasurer’s Office at 248-347-0440 for further information.
Most information in the Assessing Department is public record. This information can be found by visiting the Assessing Department or BSA Online - City of Novi. You may look up information by owner name, site address, or parcel number. Information such as square footage and current year values are available, as are drawings of the ground floor areas.
For residential properties, complete the Address or Name Change Form (PDF) and submit it to the Assessing Department.
If you are requesting a name change or removal, please also provide the appropriate legal document, such as a marriage license, divorce decree, death certificate, or court order.
For commercial or industrial properties, please send a written request – on company letterhead – to the Assessing Department to update the mailing address for both assessments and taxes. Be sure to include your parcel number, company name, property address, new mailing address, and the name and title/authority of the person requesting the mailing address change.
The Principal Residence Exemption (PRE), often referred to as the “Homestead Exemption,” is an exemption from school operating taxes of up to 18 mills. To qualify, homeowners must both own and occupy the home as their principal residence on or before June 1 to receive a reduction on their summer tax statement.
Download the Principal Residence Exemption (PRE) Affidavit (PDF)
Legislation also allows a Winter PRE for homes acquired and occupied as a principal residence between June 2 and November 1. Individuals or married couples may claim only one PRE at a time.
The exemption continues until you no longer own or occupy the home, whichever occurs first. When this happens, notify the Assessing Department in writing by filing the Request to Rescind Principal Residence Exemption Form (PDF).
Homeowners may claim only one PRE at a time nationwide.
Under specific conditions, a homeowner may be eligible to keep the PRE on a previous home through a Conditional Rescission. The previous homestead must be rescinded, no longer occupied, leased, or used for business purposes, and actively listed for sale. The homeowner must also have acquired another Michigan principal residence and be claiming a PRE.
Submit a copy of the new PRE and recent tax statement to the Assessing Department along with the Conditional Rescission of Principal Residence Exemption Form (PDF) by June 1 to qualify for the summer and winter tax statements, or by November 1 to qualify for the winter tax statement.
On March 15, 1994, Michigan voters approved the constitutional amendments known as “Proposal A”. Prior to Proposal A, property tax calculations were based on the State Equalized Value (SEV), which fluctuated based on market conditions. Proposal A established a Taxable Value (TV) as the basis for the calculation of property taxes. Increases in TV are limited to the percent of change of the Inflation Rate Multiplier (IRM) or 5%, whichever is less, provided there were no losses or additions to the property. The limit on TV does not apply to a property in the year following a transfer of ownership (sale). Once purchased, a property’s TV will uncap in the year following the transfer and will become equal to the property’s SEV. The TV will be capped the subsequent year and will increase/decrease by the IRM (or 5% cap) plus or minus the value of any construction or demolition that has occurred.
In other words, since Proposal A passed, you can no longer compare your property taxes with neighboring properties, as most not only have different features, but also transferred ownership at different times. If comparing SEVs, remember to compare apples-to-apples. Some important items to compare would be square footage of the home, bathroom count, basement finish, fireplaces, garages, decks, etc.
EX: Suppose your neighbor purchased their home on March 20, 2025, and at that time the 2025 State Equalized Value (SEV) was $75,000 and the Taxable Value (TV) was $55,000. Their 2025 tax bills would be calculated using the prior owner's TV of $55,000 for 2025 only.
Based on sales of homes in the neighborhood, your neighbor's new SEV for 2026 has increased to $90,000. Due to Proposal A, your neighbor’s home uncapped for the 2026 tax year, and their 2026 TV was made equal to their 2026 SEV. They will see an increase in taxes, as their 2026 tax bills will be calculated using a $90,000 TV instead of the prior year’s $55,000.
(Taxable Value / 1,000) x School District Millage Rate = Property Taxes. This calculation does not include special assessments, trash collection, penalties/interest, or previous balances. Information related to taxes should be directed to the Treasurer’s Office at 248-347-0440.