Are real estate taxes the same as property taxes?

Real estate jargon can feel like a maze, especially when you’re trying to buy a home in Holland, Michigan and every dollar matters. One phrase that trips people up all the time is this: Are real estate taxes the same as property taxes?

Here’s the straight answer. and I’ll break it down the way I explain it to my clients as a local West Michigan realtor.

Short version: Yes, real estate taxes are property taxes. They’re two names for the same bill. But the long version matters, because understanding how that tax is calculated in Holland can save you some nasty surprises.

In Michigan, the tax you pay on your home each year is called a property tax, and technically it’s a tax on “real estate.” So the terms get used interchangeably. The important thing isn’t the name — it’s how the number on the bill happens.

Every home in Holland has two key values the city uses: SEV (State Equalized Value) and Taxable Value. This is where people get blindsided.

SEV is basically half of what the city thinks your home is worth.

Taxable Value is what you’re actually taxed on — and that number is capped, meaning it can only rise a small amount each year unless the property sells.

When you buy a house, that cap resets. Suddenly, your taxable value can “uncap” and jump up to match the SEV. Translation: your property taxes might be higher than what the previous owner paid. I’ve had buyers walk into a home thinking the taxes are $3,600 a year, only to find out theirs will be closer to $4,500. Not fun to find out after closing.

This is where having someone local matters. Holland and the surrounding townships (Park, Laketown, Zeeland, Olive, Fillmore, Blendon) all have slightly different millage rates — that’s the actual tax rate applied to your taxable value. School districts, fire departments, and local ballot proposals all play into it too.

As a full-time West Michigan realtor, I walk buyers through the exact numbers before they write an offer. I pull the current SEV, the taxable value, the millage rate, and I calculate what your taxes will actually be once they uncap. No guessing. No surprises.

So yes, “real estate taxes” and “property taxes” refer to the same bill — but understanding how that bill is built is the difference between buying comfortably and getting overwhelmed.

If you’re thinking about buying in Holland or anywhere in West Michigan and want me to run the numbers on a property you’re eyeing, I’m here to make it simple. The more you understand up front, the smoother your entire home-buying experience becomes.