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Homestead Property Tax Credit

By Jadranko Tomic-Bobas,, Hotline Managing Attorney

For many, living in Michigan is a dream come true. It has the perfect mix of recreation and industry, you get a beautiful blend of all four seasons, and wherever you are you are never far from a beautiful freshwater coastline. However, for many low income households, simply paying property taxes to live here can become an overwhelming financial burden. It is for this reason that the State of Michigan has implemented the Homestead Property Tax Credit for qualifying homeowners and renters. 

In the state of Michigan, a homestead is considered to be the place where you have your permanent home, which means you can only claim one homestead at a time. Cottages, second homes, and college dorms are not qualifying homes under the Homestead Property Tax Credit.  

There are several qualifications that determine if you are eligible to claim a property tax credit. You must meet all of the requirements in order to qualify.  

  1. Your home must be in Michigan.
  2. You must be a resident of Michigan for at least six months during the year you are claiming a credit.
  3. You must own or pay rent for a property you occupy.
  4. Your home must be property on which property taxes were levied.  
  5. If you own your home, your home’s taxable value cannot exceed $135,000.
  6. Your total household resources must be no more than $50,000. For more information about what is and is not included in your total household resources, you can visit the State of Michigan’s website and review the Checklist for Determining Total Household Resources. 

Several other property tax credits are available for individuals who qualify based on special circumstances. For a full list of special circumstances and/or to see if you qualify for one of these special circumstances, you may want to visit the State of Michigan’s website on the Department of Treasury’s tax page, or speak with a qualified tax professional. 

To apply for a Homestead Property Tax Credit you must complete the Michigan Homestead Property Tax Credit Claim form MI-1040CR. For more information, to know if you are qualified, or help filing out the appropriate form, you should contact a tax attorney or other tax professional. 

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