The tax is defined as $1 per $1,000 of the taxable value of a property, and Detroit residents in 2024 paid upwards of 67 mills, per data from the state. Smaller, one mill reductions have been approved for the 2023 and 2024 budgets, according to Duggan administration materials. 

Many of the surrounding suburbs have millage rates in the 40s and 50s, and Detroit’s high property taxes have long been viewed as a deterrent to attracting more residents in the city. 

The development boom around much of the city clears the way to focus on growing city coffers via income tax revenue as opposed to property taxes, Duggan said in his Friday budget proposal. 

With Duggan opting against a fourth mayoral term, the roster of candidates to replace him has been increasing in recent weeks. At least two candidates — City Council President Mary Sheffield and Councilman Fred Durhal — will be asked to approve Duggan’s budget. 

Duggan says this most recent budget proposal makes for his 12th consecutive balanced budget, and mayoral candidates have already begun to make maintaining the city’s financial stability a key priority of their campaigns.

Duggan said he believes the next mayor will be able to make additional progress on reducing city property taxes. 

The mayor’s proposed fiscal year 2026 budget proposal totals just over $3 billion, with nearly $1.6 billon of that for General Fund activities, $102 million more than last year, according to a news release.  

In addition to the proposed property tax cut, key elements of the budget include:

• Nearly $500 million in reserves, including $348 million in the Retiree Protection Fund and $150 million for the city’s Rainy Day Fund.
• $19.9 million contribution increase to Detroit Department of Transportation operations, including more staffing and improved service.
• $14 million for cleanup on freeways, alleys and commercial corridors.
• $8.4 million for homeless services.
• $2.5 million for Motor City Match, a program to support small business growth. 

Detroit City Council will hold budget hearings beginning next month and aims to approve a budget by April ahead of the July 1 start to the fiscal year. More materials on Duggan’s proposed budget can be found here. 

“The FY26 budget is a direct result of the hard work and partnership between the administration and City Council over the last 12 years,” Jay Rising, the city’s CFO, said in the release. “Detroit today is fiscally stronger than it was in 2014 and ultimately, residents and neighborhoods are the true beneficiaries because of improved city services, job-creating economic development and a growing tax base.”