Service Fee/PILOT Housing

Why did I receive a reduced Homestead Property Tax Credit (or a notice of denial) due to residing in Service Fee/PILOT (payment in lieu of taxes) housing?

Upon review of your homestead property tax credit, it was determined the address from which you filed is Service Fee/PILOT (payment in lieu of taxes) housing. Your return was filed using 20% of your total rent to calculate your property tax credit.

Regardless of the amount of rent paid, the Income Tax Act provides that a renter living in Service Fee/PILOT housing must calculate the property tax credit using only 10% of rent paid.

Service Fee/PILOT housing is a program where there is an agreement between a municipality and a rental property owner (private or public) to pay a service fee instead of property taxes.

If 10% of your eligible rent does not exceed 3.5% of your total household resources/household income, you do not qualify for a homestead property tax credit.

Important Note: It is the renter's responsibility to determine if the rental property is Service Fee/PILOT housing before claiming a credit. Service fees are typically less than property taxes. You can find out if a property is subject to Service Fee/PILOT housing by contacting the city/township/county office.