Michigan Property Tax Guide • 2026
Michigan Homestead Exemption: Rules & Savings
If your Michigan home is your principal residence, the state’s Principal Residence Exemption can remove up to 18 mills of local school operating tax from the qualifying property.
Michigan also has a separate Homestead Property Tax Credit for qualifying homeowners and renters. The first question is therefore not simply “Do I qualify for a homestead exemption?”—it is which Michigan homestead program applies to me?
Start here
What Is the Michigan Homestead Exemption?
The short answer
Michigan’s main homeowner property-tax “homestead exemption” is officially called the Principal Residence Exemption (PRE).
A qualifying principal residence is exempt from the local school district’s operating millage, up to 18 mills. The exemption is based on the property being your true, fixed and permanent home—not simply a property that you own.
Separately, Michigan’s Homestead Property Tax Credit can help qualified homeowners and renters with the property taxes they have been billed. That credit is claimed through the Michigan income-tax system.
A mill is a property-tax rate unit. One mill equals $1 of tax per $1,000 of taxable value. The PRE removes the qualifying local school operating millage—up to 18 mills—not 18% of your home’s value and not necessarily 18% of your total property-tax bill.
Most important distinction
Michigan PRE vs. Homestead Property Tax Credit
Search results often combine these programs because both use the word “homestead.” They operate differently, use different forms, and produce savings in different parts of the tax system.
Principal Residence Exemption (PRE)
The PRE exempts a qualifying principal residence from the local school district operating millage, up to 18 mills.
- Administered through the local city or township assessor.
- Use Principal Residence Exemption Affidavit, Form 2368.
- Applies to the qualifying principal residence.
- Can remain in effect while eligibility continues.
- Must be rescinded after the property stops being your principal residence.
Homestead Property Tax Credit (HPTC)
The HPTC helps qualifying Michigan homeowners and renters offset some of the property taxes billed to them.
- Administered through the Michigan Department of Treasury.
- Claimed through Michigan income-tax forms.
- Homeowners must meet taxable-value and household-resource requirements.
- Renters can also qualify under the applicable rules.
- Separate from the PRE shown on a property-tax record.
If you are looking at your property tax record and asking why local school operating taxes are lower, check your PRE. If you are filing a Michigan income-tax return and asking whether some of your property taxes can produce a refundable credit, check the HPTC.
PRE eligibility
Who Qualifies for a Michigan Principal Residence Exemption?
The key requirement is ownership plus actual principal-residence occupancy. Michigan defines a principal residence as your true, fixed and permanent home to which you intend to return when absent.
You own the property
The PRE is available to a qualified owner under Michigan’s statutory ownership rules.
You occupy it
The property must actually be your principal residence. Ownership by itself does not establish PRE eligibility.
It is your permanent home
Michigan uses the concept of a true, fixed and permanent home. A seasonal or vacation property generally does not qualify as the principal residence.
File the affidavit
Even when you satisfy the ownership and occupancy requirements, you must claim the exemption by filing Form 2368 with the appropriate local assessor.
Do not claim a conflicting residence
Michigan rules restrict improper claims involving another principal residence or a substantially similar exemption in another state.
Keep your status accurate
If the home stops being your principal residence, you generally must take action to rescind the PRE.
Michigan Treasury specifically explains that a person with two properties cannot select whichever property has the larger taxable value and call that property the principal residence. The exemption follows the qualifying principal residence.
Common mistakes
What Usually Does Not Qualify as a Michigan Principal Residence?
| Situation | PRE treatment | Why it matters |
|---|---|---|
| Vacation or seasonal home | Generally not eligible as your PRE | The property must be your true, fixed and permanent home. |
| Investment property | Generally not eligible | A rental property you do not occupy as your principal residence does not satisfy the ordinary occupancy requirement. |
| Second home | Only the qualifying principal residence may receive the PRE | You cannot select a second home simply because it would produce greater savings. |
| Home rented after moving | PRE can become ineligible | Changing occupancy and leasing status can change eligibility and may require rescission or another statutory procedure. |
| Home used partly for business | Potentially partial | The qualifying principal-residence portion may need to be separated from business or other nonresidential use. |
| Property in another state | Cannot support a Michigan PRE | Michigan’s PRE is for qualifying Michigan property and has rules addressing substantially similar exemptions in other states. |
Estimate the benefit
How Much Can the Michigan Homestead Exemption Save?
The PRE’s maximum benefit is tied to the local school operating millage, up to 18 mills. Your actual savings depend on your taxable value and the applicable school operating millage.
Michigan PRE savings estimator
Enter the taxable value of the qualifying residence and the local school operating millage. This estimates the PRE-related school operating tax avoided.
The calculator caps the PRE rate at 18 mills because the statutory PRE exemption is limited to up to 18 mills.
$100,000 taxable value
At the full 18-mill PRE rate, the simple calculation is $100,000 × 0.018 = $1,800 of annual school operating tax avoided.
$150,000 taxable value
At 18 mills, $150,000 × 0.018 = $2,700 of school operating tax avoided.
$200,000 taxable value
At 18 mills, $200,000 × 0.018 = $3,600 of school operating tax avoided.
The PRE affects the qualifying local school operating millage. Your complete property-tax bill can include the State Education Tax, county, city, township, school, intermediate school district, community college, library, special assessments and other charges that are not all removed by the PRE.
File your PRE
How to Apply for the Michigan Principal Residence Exemption
The PRE is filed with the city or township assessor where the property is located. Do not send the standard Form 2368 directly to the Michigan Department of Treasury.
Confirm that this is your principal residence
Before filing, make sure the property is your true, fixed and permanent home and that you meet the applicable ownership requirements.
Find your local assessor
The assessor for the city or township where the property is located handles the PRE affidavit.
Get Principal Residence Exemption Affidavit Form 2368
Michigan lists Form 2368 as the Principal Residence Exemption Affidavit.
File Form 2368 with your city or township assessor
Send the completed affidavit to the assessor for the property location. The state’s Form 2368 instructions specifically say not to send the form directly to Treasury.
Verify that PRE appears on your tax record
Review your assessment or property-tax statement after processing. The local record should reflect the applicable principal residence exemption.
Michigan’s official forms page lists Form 2368 as the Principal Residence Exemption Affidavit and Form 2602 as the Request to Rescind Principal Residence Exemption.
Filing dates
Michigan Homestead Exemption Deadlines
| Form 2368 timing | Tax result | Practical meaning |
|---|---|---|
| On or before June 1 | Can reduce that year’s taxes beginning with the summer levy. | Best deadline when you want the PRE reflected on the summer and winter levies. |
| June 2 through November 1 | Can reduce that year’s taxes beginning with the winter levy. | The exemption can still affect the current year, but timing of the benefit changes. |
| After November 1 | Late-claim rules may apply. | Contact the local assessor. Michigan Treasury says an owner may still file and, under applicable conditions, the assessor may grant the exemption retroactively for the current and previous three calendar years. |
The PRE is a property-tax claim filed with the local assessor. The HPTC is claimed through Michigan tax forms and follows income-tax filing rules. They have different procedures.
Before submitting
Michigan Homestead Exemption Document Checklist
PRE application checklist
- Principal Residence Exemption Affidavit, Form 2368.
- Property tax identification number.
- Property address.
- Owner information.
- Signed and dated certification.
- Local assessor mailing or submission information.
- Copy of the submitted form for your records.
Helpful occupancy evidence
- Michigan driver’s license or state ID showing the residence address.
- Voter registration information.
- Utility records or other address evidence when relevant.
- Documents showing ownership.
- Evidence supporting your actual occupancy when requested by an assessor or Treasury.
- Documents explaining unusual ownership or occupancy circumstances.
Michigan Treasury states that the owner bears the burden of establishing eligibility for the PRE. Keep documentation that supports both ownership and occupancy.
Situations that need extra care
Michigan Homestead Exemption Special Rules
Contiguous property
An owner’s unoccupied adjoining or contiguous property can potentially be included in the statutory definition of principal residence when the required residential or timber-cutover classification and other conditions are satisfied.
Parcel split or combination
Michigan Treasury says a split or combination creates a new parcel number and requires a new PRE affidavit for the new parcel.
Former home for sale
A qualifying owner may be able to use a conditional rescission to retain a PRE on a previous home for up to three years while it is for sale, subject to the statutory conditions and annual filing requirements.
Active-duty service
Michigan has special provisions for active-duty military owners. Form 4660 can be relevant when an otherwise qualifying property is rented while the owner intends to return.
Nursing home or assisted living
A homeowner may be able to retain PRE in qualifying circumstances when temporarily living in a nursing home, assisted-living center or convalescent facility, subject to specific ownership, residence and non-leasing requirements.
Destroyed or demolished home
Michigan provides special rules for certain homes damaged or destroyed by accident, an act of God or another person’s act without the owner’s consent.
If you are selling a former principal residence, do not assume that the old PRE automatically continues. Michigan Treasury identifies Form 4640 for Conditional Rescission and requires annual verification while the previous property remains under the conditional-rescission rules.
When you move
When Must You Cancel a Michigan Homestead Exemption?
A PRE is not a permanent entitlement after you move out. When the property stops being your principal residence, Michigan requires the appropriate rescission process.
Determine when the property stopped being your principal residence
The relevant date is tied to your actual occupancy and establishment of another principal residence, not simply the date you decide to sell.
Use Form 2602 when required
Michigan lists Form 2602 as the Request to Rescind Principal Residence Exemption.
File within 90 days
Michigan Treasury states that the owner must submit the rescission request within 90 days after the property is no longer used as the owner’s principal residence.
Michigan Treasury states that failure to rescind can result in a daily penalty of $5, up to $200, and an improper PRE claim can lead to additional taxes, penalties and interest.
Compliance
Michigan Homestead Exemption Audits and Denials
Michigan Treasury conducts PRE audits to verify that exemptions are being claimed by eligible homeowners. An audit is not limited to people who currently own the property.
What an audit can examine
- Whether you owned the property.
- Whether you actually occupied it as your principal residence.
- Whether another principal residence existed.
- Whether another state’s substantially similar exemption was claimed.
- Whether the PRE continued after you moved.
If Treasury sends Form 4632
Michigan Treasury identifies Form 4632 as the PRE Audit Questionnaire. If you receive one, the state says it must be completed and returned within 30 days.
Failure to respond can result in denial of the PRE and additional taxes and interest for improperly exempted years.
Treasury audits can examine the current tax year and the three immediately preceding tax years. A former owner may therefore need records proving prior ownership and occupancy.
Separate savings program
Michigan Homestead Property Tax Credit: Who Can Claim It?
The Homestead Property Tax Credit is a separate Michigan tax credit. It can help qualifying homeowners and renters, but eligibility is based on requirements such as Michigan residency, household resources and taxable value.
Michigan homestead
The homestead must be in Michigan, and the claimant must meet the applicable ownership or rental requirements.
Michigan resident
Michigan Treasury generally requires the claimant to have been a Michigan resident for at least six months of the year being claimed.
Household-resource limit
The claimant’s total household resources must be below the applicable annual limit. Limits can change by tax year.
Taxable-value limit
Homeowners must satisfy the applicable taxable-value ceiling. Treasury specifically warns taxpayers to use taxable value—not SEV—when completing the credit calculation.
Rent can qualify
Eligible Michigan renters can claim the HPTC when the applicable residency, household-resource and rental requirements are satisfied.
MI-1040CR / MI-1040CR-2
Michigan Treasury identifies MI-1040CR for the general Homestead Property Tax Credit and MI-1040CR-2 for certain veterans and blind claimants.
If you are trying to understand a property-tax statement, start with PRE. If you are trying to calculate a credit on your Michigan tax return, review the HPTC rules.
Verify your claim
How to Check Your Michigan Homestead Exemption Status
Look at your property tax statement
Start with the latest summer or winter tax bill or assessment notice. Look for the PRE or principal residence exemption information.
Confirm the local assessor
PRE records are administered at the local level. Contact the city or township assessor for the property.
Ask what tax year is affected
If you filed after June 1, ask whether the exemption will begin with the winter levy rather than the summer levy.
Correct missing information before the bill is finalized
If the exemption is missing, contact the assessor rather than assuming the tax collector can add the PRE.
Michigan’s official PRE guidance directs owners to file the affidavit with the city or township assessor where the property is located.
Savings questions
How Michigan Homeowners Should Read Their Tax Numbers
| Number on your record | What it tells you | Do not confuse it with |
|---|---|---|
| Taxable value | The value to which applicable property-tax rates are applied. | SEV or market value. |
| SEV | State equalized value used in Michigan’s property assessment system. | The taxable value used to calculate the HPTC. |
| PRE | Exempts the principal residence from local school operating millage, up to 18 mills. | A percentage reduction of your entire tax bill. |
| Mill | A property-tax rate unit equal to $1 per $1,000 of taxable value. | A percentage point. |
| HPTC | A separate Michigan income-tax credit for qualifying homeowners and renters. | The PRE shown on the property-tax roll. |
Official resources
Michigan Homestead Exemption Official Links
Official PRE overview, eligibility and filing information.
Open Michigan PRE pageOfficial list containing Form 2368, Form 2602, Form 4640 and related forms.
Open PRE formsDetailed official rules covering deadlines, rescission, multiple parcels and late claims.
Open claim requirementsSeparate program for qualifying homeowners and renters.
Open HPTC guideMichigan Treasury instructions for MI-1040CR and MI-1040CR-2.
Open HPTC formsOfficial Treasury information about audits, Form 4632 and denial consequences.
Open PRE audit informationNeed help?
Michigan Homestead Exemption Contacts
A missing PRE claim normally starts with the local assessor. A Treasury audit questionnaire is different and should be handled using the audit contact information supplied by Treasury.
Homeowner questions
Michigan Homestead Exemption FAQs
What is the Michigan homestead exemption?
How much is the Michigan Principal Residence Exemption?
Is the Michigan homestead exemption 18 percent?
What form do I use for the Michigan homestead exemption?
When is the Michigan homestead exemption deadline?
Can I claim a Michigan homestead exemption on two homes?
What happens if I move out of my Michigan home?
Can I keep my PRE while my old home is for sale?
What is the Michigan Homestead Property Tax Credit?
Can renters claim Michigan’s Homestead Property Tax Credit?
What to Do Next
If you own and occupy a Michigan home as your principal residence, start by checking whether your property already has a PRE. If it does not, use Form 2368 and file it with the correct local assessor.
Check your tax bill
Find the parcel number, taxable value and current exemption information.
Confirm eligibility
Make sure the property is your true, fixed and permanent principal residence.
File Form 2368
Submit the Principal Residence Exemption Affidavit to your local assessor.
Check HPTC separately
If your household income qualifies, review Michigan’s separate Homestead Property Tax Credit.