In this section:
– Homestead Property Tax Credit
– Principal Residence Exemption
– Calculate your Property Taxes – The easy way!
Homstead Property Tax Credit
What is the Homestead Property Tax Credit?
Michigan’s property tax credit is a way the State of Michigan helps you pay some of your property taxes if you are a qualified Michigan homeowner or renter. You should complete the Property Tax Credit Claim form (MI-1040CR) to see if you qualify for the credit.
The credit, for most people, is based on a comparison between household income and property taxes. Homeowners pay property taxes directly and renters pay them indirectly with their rent.
Checklist For Determining Household Income
The credit is designed to give the greatest property tax relief to senior citizens, disabled or blind persons and disabled veterans as well as the surviving spouse of a veteran. Michigan residents who are not in these groups may also qualify for the credit.
What is a “Homestead”?
Your homestead is the place where you have your permanent home. It is the place to which you plan to return whenever you go away. You can only have one homestead at a time and you must own/rent and occupy the dwelling. Your homestead can be a rented apartment or a mobile home lot in a mobile home park. Cottages and second homes, property you own and rent/lease to others does not qualify as a homestead. College dormitories do not qualify as homesteads.
Who qualifies for a Homestead Property Tax Credit?
You may claim a property tax credit if all of the following apply:
1. Your homestead is in Michigan.
2. You were a resident of Michigan for at least six months during the year.
3. You own/rent and occupy a Michigan homestead on which property taxes were levied.
4. Your household income is less than $82,650.
For forms and information on how to file, visit the Michigan Department of Treasury page on Homestead Property Tax Credit Information.
Principal Residence Exemption
A Principal Residence Exemption (PRE) exempts a residence from the tax levied by a local school district for school operating purposes up to 18 mills. To qualify for a PRE, a person must be a Michigan resident who owns and occupies the property as a principal residence. The PRE is a separate program from the Homestead Property Tax Credit, which is filed annually with your Michigan Individual Income Tax Return.
For forms and information on how to file, visit the Michigan Department of Treasury page on Principal Residence Exemptions.
Property Tax Calculator
Estimate your property taxes. Simply enter the SEV (for future owners) or the Taxable Value (for current owners), and select your county from the drop down list provided. You will then be prompted to select your city, village or township along with your school district. (Although this calculator may use prior year millage rates, depending upon when it was last updated, it will give you a reasonable estimate of taxes since current rates are similar.)