Homestead Property Tax Credit

Michigan's homestead property tax credit is how the State of Michigan can help you pay some of your property taxes if you are a qualified Michigan homeowner or renter and meet the requirements. You should complete the Michigan Homestead Property Tax Credit Claim MI-1040CR to see if you qualify for the credit.

The credit, for most people, is based on a comparison between property taxes and total household resources. Homeowners pay property taxes directly and renters pay them indirectly with their rent.

Given that each taxpayer has unique circumstances that determine their eligibility for the credit, the Michigan Department of Treasury encourages you to review the information below and/or contact a tax professional.

 

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 must be the owner and occupant or be contracted to pay rent and occupy the dwelling. You can only have one homestead at a time. Cottages, second homes, property you own and rent/lease to others, and college dormitories do not qualify as a homestead.

Who qualifies for a homestead property tax credit?

You may qualify for a property tax credit if all of the following apply:

  • You own or were contracted to pay rent and occupied a Michigan homestead for at least 6 months during the year on which property taxes and/or service fees were levied.  If you own your home, your taxable value was $135,000 or less (unless unoccupied farmland)

  • Your total household resources were $60,000 or less (part year residents must annualize total household resources to determine if a credit reduction applies)

  • If 100% of your total household resources were received from the Michigan Department of Health and Human Services, you do not qualify.