GRAND RAPIDS, Mich. — If you buy your home in 2025, be prepared for an increase in your property taxes in 2026. Many homeowners who purchased their properties last year received a notice in the mail from their assessors, indicating a significant change in their taxable values. It's a common but inconvenient occurrence.
Assessors across West Michigan have been busy ensuring property owners receive their assessment notices. This document, labeled “This is not a tax bill,” may be disregarded by some, but it could have a substantial impact on mortgage payments.
Paula Jastifer, the city assessor in Grand Rapids, often receives calls from concerned homeowners whose escrow has been depleted because of unnoticed property tax changes.
“When they get to me after they get their new mortgage payment, there’s nothing I can do for them,” she said. Many homeowners are caught off guard by the changes. “If they're not expecting [a change in taxes], then it becomes a tragedy for them,” she added.
The impact of rising property taxes is evident in the community. One resident, Shakeyda, expressed frustration, saying, “It takes a big chunk of your income,” while another, Salima, commented, “Property taxes are horrible.” Marissa shared her surprise, stating, “Just recently, I did get my new assessment, and it has jumped a lot. So a big surprise, not expected.”
Several residents Fox 17 spoke to indicated they might have chosen different neighborhoods had they known about the significant increases in property values. “Had I known, yes, we would have probably looked into purchasing a home, probably in a different area as well,” said Salima. Mary Haskamp experienced a steep rise in her property taxes, which resulted in her escrow account being short. “We bought our home, and then last year we got a letter from our lender letting us know that our escrow was several $100 short, so our mortgage went up a second time,” Mary explained.
The West Michigan housing market has been steadily increasing for the past decade, with a marked acceleration in 2020 due to external factors, including the COVID-19 pandemic. Pete Humphreys, a loan officer for Independent Bank, noted, “This has been highlighted by COVID,” and projected that costs could rise another 3 to 5 percent this year.
Established homeowners may be somewhat insulated, as their taxable value can only increase by a maximum of five percent each year. However, for first-time homeowners, the situation is different as their property's taxable value is uncapped during the first year of ownership. Pete emphasized the implications: “If you see a 50% discrepancy there, then you can bet that your property tax is going to go up by 50% after you take ownership.” He warned that discrepancies between assessed and taxable values could lead to unpleasant surprises for homeowners.
To avoid financial pitfalls, homeowners are encouraged to communicate with their banks about adjusting their escrows and to be proactive about understanding potential tax changes. Jastifer is making efforts to assist residents by offering seminars and online resources. “You can plug that in and get an estimate of what your 2025 taxes are going to be,” she said, advising those concerned about their assessments.
If you believe your assessed value exceeds 50% of your property’s true cash value, it is crucial to file an appeal with the Grand Rapids assessor's office. Appeals are due by February 14 at 5 PM. Dates may vary in other municipalities across West Michigan, so it’s important to review the deadlines and procedures specific to your area.
This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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