The Homestead Exemption in Michigan
Who qualifies for the Michigan homestead property tax exemption, how much it saves, and how and when to apply.
Short answer: Michigan's Principal Residence Exemption (PRE) exempts a principal residence from the tax levied by the local school district for school operating purposes (to the extent provided in the Revised School Code). MCL 211.7cc
| Homestead exemption | Michigan's Principal Residence Exemption (PRE) exempts a principal residence from the tax levied by the local school district for school operating purposes (to the extent provided in the Revised School Code). The property must be owned and occupied as a principal residence by the owner when the affidavit is signed. Source: MCL 211.7cc |
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| How to apply | File a principal residence exemption affidavit with the local tax collecting unit (city or township) where the property is located. Once accepted, the exemption continues without annual refiling until December 31 of the year the property is transferred or stops being a principal residence. An owner must file a rescission form within 90 days after the property stops being a principal residence; late filing carries a penalty of $5 per day, up to $200. Source: MCL 211.7cc |
| Application deadline | The affidavit must be filed on or before June 1 for the immediately succeeding summer tax levy, or on or before November 1 for the immediately succeeding winter tax levy. Source: MCL 211.7cc |
| Limits on assessment increases | Under Proposal A, a parcel's taxable value can rise each year by no more than the lesser of 5% (a multiplier of 1.05) or the inflation rate, plus additions, and not above its state equalized value. After a transfer of ownership, taxable value is "uncapped" and reset to the state equalized value for the following year. Source: MCL 211.27a(2), (3) |
More Michigan property tax & homestead exemptions
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FAQ
What is the homestead exemption in Michigan?
Michigan's Principal Residence Exemption (PRE) exempts a principal residence from the tax levied by the local school district for school operating purposes (to the extent provided in the Revised School Code). The property must be owned and occupied as a principal residence by the owner when the affidavit is signed.
How do you apply for a homestead exemption in Michigan?
File a principal residence exemption affidavit with the local tax collecting unit (city or township) where the property is located. Once accepted, the exemption continues without annual refiling until December 31 of the year the property is transferred or stops being a principal residence. An owner must file a rescission form within 90 days after the property stops being a principal residence; late filing carries a penalty of $5 per day, up to $200.
When is the deadline to apply for a homestead exemption in Michigan?
The affidavit must be filed on or before June 1 for the immediately succeeding summer tax levy, or on or before November 1 for the immediately succeeding winter tax levy.
How much can a home's assessed value go up each year in Michigan?
Under Proposal A, a parcel's taxable value can rise each year by no more than the lesser of 5% (a multiplier of 1.05) or the inflation rate, plus additions, and not above its state equalized value. After a transfer of ownership, taxable value is "uncapped" and reset to the state equalized value for the following year.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.