Homestead Property Tax Credit - Proposed Changes and Estimator

On February 5, 2014, Governor Snyder proposed to expand the Homestead Property Tax Credit to provide $102.7 million in additional property tax relief to seniors, working families and the disabled. The following calculator has been created to help taxpayers estimate how much their Homestead Property Tax Credit would increase under the Governor’s plan.

Currently, the general Homestead Property Tax Credit is available to homeowners and renters with incomes up to $50,000. It is calculated by subtracting 3.5 percent of a taxpayer’s income from the amount of property taxes on the taxpayer’s home and multiplying the result by 60 percent. An enhanced credit is available for low-income seniors and disabled citizens. Renters calculate their credit using 20 percent of their rent.

Beginning with tax year 2013, the Governor proposes two significant changes to the calculation of the Homestead Property Tax Credit. First, the governor proposes to change the income multiplier from 3.5 percent to 3.0 percent, allowing a greater percentage of property taxes to be refunded. Second, the Governor proposes to extend the credit to taxpayers with income up to $60,000.

The proposed changes will provide additional property tax relief to an estimated 1.3 million taxpayers. Seniors will receive approximately 33 percent of this relief.

To estimate the amount your Homestead Property Tax Credit would change under this proposal, fill in the following information in the spaces below:

  1. Property Taxes assessed on your home in 2013.
  2. Property Rent paid in 2013 if you rent a house, an apartment or a lot in a mobile home park.
  3. Total Household Resources received in 2013. Household resources include most sources of income including wages and salaries, interest, dividends, pensions, IRAs, annuities, social security, capital gains, business income, and unemployment compensation. Click here for a complete Checklist for Determining Total Household Resources. If you do not know your household resources, enter an estimate of your annual income. If your household resources exceed $60,000 you would not be eligible for the credit.
  4. Senior Citizen or Disabled Person – indicate whether you are a senior citizen or disabled person.

After you have submitted your information, press the “Calculate Tax Credit” button and the calculator will produce the following:

  • An estimate of your Homestead Property Tax Credit under current law,
  • An estimate of your credit under the Governor’s proposal, and
  • The amount your homestead property tax credit would change.

In order to be eligible for the Homestead Property Tax Credit, the taxable value of your home can not exceed $135,000.

Please provide the following:
If you don't know your total household resources (THR), enter your annual income to approximate the amount of your credit. Note that if your THR exceeds $60,000 you will be ineligible for the credit.

Personal Status

For more about this credit, see Homestead Property Tax Credit Information.

Checklist for Determining Total Household Resources