Detroit’s high property taxes are driving a housing affordability crisis – how can city leaders bring down costs?

May 22, 2026 The Conversation
Amanda Nothaft

Amanda Nothaft

Poverty Solutions director of data and analysis

Property taxes in Detroit, the highest among major U.S. cities, continue to burden the city's low-income households. Failure to pay these taxes can lead to foreclosure.

Mayor Mary Sheffield advocated for property tax relief during her first State of the City address in March 2026. Sheffield proposed a 30% to 60% cut in property taxes in the city, a change Michigan lawmakers would need to approve.

The City of Detroit will likely take in approximately $164 million from property taxes in the 2026 fiscal year, less than a tax collected from the city's casinos. Property taxes fund public safety, libraries, sanitation and other city services.

Amanda Nothaft, the director of data and analysis at Poverty Solutions at the University of Michigan, explains the extent of Detroit's property tax burden and avenues for reform.