What a Ann Arbor home costs each year
Property tax, water, trash and energy from public rates. Look up your address to make it yours, and see how to pay less.
Suggestions as you type come from Google; the lookup uses free public map services to find who serves it. Not stored unless you save your house.
Starts at $226,700 of taxable value. Typical use.
- Property tax$11,988
6.084% of $226,700 taxable value, with the principal residence exemption
- Electricity and gas$2,660
609.8 kWh a month $1,759 · 68.74 therms $901
- Water and sewer$1,876
9 units (CCF) a month on City of Ann Arbor Water: water $65, sewer $68, stormwater (impervious-area fee, middle tier) $23 a month
- TrashIncluded
The City's 2026 tax sheet lists a 2.2977-mill Refuse Collection levy
- Home insurance$1,056
Typical premium $1,056
A typical Ann Arbor house costs about $17,600 a year: $11,990 property tax and charges, $1,880 water and sewer, $2,660 electricity and gas, $1,060 home insurance; trash is paid through property tax. Estimated from public rates, not anyone's actual bill.
Rates checked Oct 22, 2026. Insurance: what you enter, or a typical premium until you do. Sources are listed at the bottom.
Ways to pay less
Nothing here applies to every house automatically. These are worth checking:
Homeowners: Principal Residence ExemptionUp to 18 mills
A principal residence is exempt from local school operating millage, up to 18 mills; the Ann Arbor Public Schools sheet lists 1.0409 operating mills for a principal residence and 9.0000 for non-principal-residence property.
How: See the Michigan Department of Treasury's Principal Residence Exemption information.
Pay the water bill by the due date10% off the bill
The City's rate chart lists a 10% savings for a bill paid by the due date.
How: Pay the City water bill by its due date.
Lower incomes: Michigan Homestead Property Tax CreditUp to $1,900
Tax year 2025 limits: maximum taxable value $165,400, total household resources limit $71,500, phase-out above $62,500, credit limit $1,900.
How: See the Michigan Department of Treasury's Homestead Property Tax Credit information.
Income at or below 150% of poverty: DTE Gas income assistance creditDTE Gas income assistance credit
For a Rate A customer at their primary residence whose total household income does not exceed 150% of the Federal poverty level, either the Residential Income Assistance Service Provision credit or the Low Income Assistance Credit is applied during all billing months. These credits will be distributed at the Company's discretion.
How: Verify receipt in the past 12 months of a Home Heating Credit, State Emergency Relief, Michigan Energy Assistance Program help, Medicaid or SNAP; a customer who cannot verify any of these must complete a self-attestation form and provide it to the utility.
Money dates
- Dec 31in 68 daysWinter property taxes are payable beginning December 1 and are due without interest or penalty by December 31
- Jul 31Summer property taxes are payable beginning July 1 and are due without interest or penalty by July 31
Who serves this house
- Water
- City of Ann Arbor Water
- City water rates effective July 1, 2026 for a single-meter residence: a quarterly customer charge plus four tiers per CCF
- Property tax
- 6.08% of value
- 2026 July-bill rates; December county levies estimated from 2025
- Garbage
- City of Ann Arbor
- The City provides weekly curbside trash cart collection to single-family and duplex homes
- Sewer
- City of Ann Arbor
- City sewer, charged $6.92 per CCF
- Electricity
- DTE Electric
- Ann Arbor is on DTE Electric's list of cities served
- Gas
- DTE Gas
- Ann Arbor is on DTE Gas's list of territory served
- Schools
- Ann Arbor Public Schools
- Ann Arbor Public Schools levies 1.0409 operating mills on a principal residence and 9.0 on other property for 2026
Your water
- Source
- Ann Arbor’s source water comes from both surface sources (Huron River) and groundwater wells
- Lead
- The City of Ann Arbor has no known homes with lead service lines, but some customers do have lead components in internal plumbing
- Hardness
- Average hardness in the 2025 Water Quality Report is 126 ppm as CaCO3 (7.4 gpg), range 74 - 180 ppm
Other MI cities
Beverly Hills home costsMount Pleasant home costsWyoming home costsBattle Creek home costsGrand Rapids home costsSaginaw home costsMarquette home costsMidland home costsOwosso home costsWayne home costsLincoln Park home costs
How these numbers are made
- Property tax: Ann Arbor homes in Ann Arbor Public Schools get one bill with the City, Washtenaw County, AAATA, library, intermediate school district, community college and school district levies. The 2026 summer sheet for a principal residence totals 45.4234 mills (53.3825 for non-principal-residence property); the page adds the December county levies at last year's 7.4568 mills as an estimate. A small part of the city is in other school districts at different rates. The City also adds an administration fee of up to 1 percent of the tax, which is not included.
- Taxable value: Michigan taxes the taxable value, capped until a sale; after a sale it resets to assessed value, half of market value. We start at half of the Census ACS 2020-2024 median home value ($453,400). Enter the taxable value from your own bill.
- Water and sewer: City rates effective July 1, 2026, billed quarterly and shown per month: water $33.75 a quarter (11.25 a month) plus tiers of $2.86, $4.58, $10.61 and $22.76 per CCF (quarterly breakpoints 9, 18 and 36 CCF divided by 3), sewer $17.44 a quarter plus $6.92 per CCF. Sewer is billed on winter water use; the page charges it on all use. Stormwater is the impervious-area fee; we assume the middle tier ($68.53 a quarter) and leave out the $4.67 quarterly charge the rate chart lists.
- Trash: the City collects weekly and pays for it through the 2.2977-mill refuse levy already in the tax rate; a 96-gallon cart is $48 a year more. Yard waste, compost and recycling services are not priced here.
- Electricity: the Michigan Public Service Commission's September 1, 2026 bill comparison for DTE Electric, which includes all surcharges: $10.00 a month with no use plus 22.4 cents per kWh from the 1,000 kWh bill. It is a single-date snapshot. Typical use is 610 kWh a month (EIA 2024 DTE Electric residential sales over customers). Gas: DTE Gas Rate A, with the same inputs as the other DTE Gas pages; the September 2026 rate order is not reflected. Insurance: the 2022 NAIC statewide average premium for Michigan (HO-3), older than the other numbers.
- Property tax is modelled as taxable value times the millage rate.
- Modelling note: the typical taxable value is half the Census figure (assessed at 50% of market value); the Census figure is not any one home's market or taxable value.
- Modelling note: the Income Assistance Credit is listed at $14.50 per meter per month, equal to the Customer Charge; which of the two credits applies is at DTE's discretion.
- Nothing here is legal, tax or insurance advice.
- Ann Arbor: water, sewer and stormwater rates effective July 1, 2026
- Ann Arbor: 2026 summer millage sheet
- Ann Arbor: 2025 Water Quality Report
- Ann Arbor: Trash
- Ann Arbor: Property taxes
- Census ACS 2020-2024 DP04, Ann Arbor city
- Michigan PSC: comparison of monthly residential bills
- DTE Electric rate book, Sections A-C (cities served)
- DTE Gas rate book, Sections A-C (territory served)
- EIA Table 6
- www.michigan.gov source
- www.michigan.gov source
- www.michigan.gov source
- www.eia.gov source
- www.eia.gov source
- www.michigan.gov source
- www.iii.org source
- www.michigan.gov source
How Ann Arbor compares
A typical Ann Arbor house against the 12 Michigan cities we cover, using the same default numbers as the total above.
| Per year | Ann Arbor | Median | Where it falls |
|---|---|---|---|
| Property tax rate | 6.08% | 6.04% | higher than 6 of the other 11 Michigan cities we cover |
| Water | $785 | $524 | higher than 8 of the other 11 Michigan cities we cover |
| Sewer and utility-bill fees | $1,091 | $761 | higher than 8 of the other 11 Michigan cities we cover |
| Electricity and gas | $2,660 | $2,762 | lower than 8 of the other 11 Michigan cities we cover |
| Home insurance | $1,056 | $1,056 | in the middle of 11 other Michigan cities we cover |
| Total | $17,580 | $8,568 | higher than 11 of the other 11 Michigan cities we cover |
Cities bill differently (some put trash on the tax bill, some cover more services), so a higher number isn't necessarily worse. The property tax rate is compared instead of dollars because house values differ.
Questions to ask your candidates
Each one starts from a number above. Any candidate can answer them.
1. Electricity and gas
The fact: Electricity and gas for a typical house here cost about $2,660 a year, lower than 8 of the other 11 Michigan cities we cover. Rates are set mostly by the utility and the state.
Ask: "Electricity and gas here cost about $2,660 a year for a typical house, lower than 8 of the other 11 Michigan cities we cover. Which parts of that can the city influence, and what would you do about them?"
Common questions about Ann Arbor house costs
What is the property tax rate in Ann Arbor?
About 5.29% of taxable value a year for an owner's principal residence, or 6.08% without the Principal Residence Exemption (2026 July-bill rates; December county levies estimated from 2025).
How much is property tax on a $500,000 house in Ann Arbor?
A house bought for $500,000 starts at about $250,000 of taxable value (50% of its value), so about $13,220 a year with the principal residence exemption. After that, taxable value rises by inflation or 5%, whichever is lower, until the house sells again.
How much is the water bill in Ann Arbor?
About $156 a month for water and sewer at typical use (9 units, or 6,732 gallons a month) on City of Ann Arbor Water.
How much does trash pickup cost in Ann Arbor?
The City's 2026 tax sheet lists a 2.2977-mill Refuse Collection levy
When is property tax due in Ann Arbor?
Dec 31: Winter property taxes are payable beginning December 1 and are due without interest or penalty by December 31 Jul 31: Summer property taxes are payable beginning July 1 and are due without interest or penalty by July 31
Can seniors lower their property tax or bills in Ann Arbor?
Yes. Lower incomes: Michigan Homestead Property Tax Credit: Tax year 2025 limits: maximum taxable value $165,400, total household resources limit $71,500, phase-out above $62,500, credit limit $1,900.
Where can I get help paying utility bills in Ann Arbor?
Income at or below 150% of poverty: DTE Gas income assistance credit: For a Rate A customer at their primary residence whose total household income does not exceed 150% of the Federal poverty level, either the Residential Income Assistance Service Provision credit or the Low Income Assistance Credit is applied during all billing months. These credits will be distributed at the Company's discretion. Verify receipt in the past 12 months of a Home Heating Credit, State Emergency Relief, Michigan Energy Assistance Program help, Medicaid or SNAP; a customer who cannot verify any of these must complete a self-attestation form and provide it to the utility.
How much does a house in Ann Arbor cost to run each year?
A typical Ann Arbor house costs about $17,600 a year: $11,990 property tax and charges, $1,880 water and sewer, $2,660 electricity and gas, $1,060 home insurance; trash is paid through property tax. Estimated from public rates, not anyone's actual bill.