Individuals Eligible for Homestead Property Tax CreditContact: See contact information below.
March 28, 2019
Individuals with a household income of $60,000 or less a year may be eligible for a Homestead Property Tax Credit, according to the Michigan Department of Treasury.
Michigan’s Homestead Property Tax Credit can help taxpayers if they are a qualified homeowner or renter and meet certain requirements. For most people, the tax credit is based on a comparison between property taxes and total household resources, with homeowners paying property taxes directly and renters paying them indirectly with their rent.
Changes to the Homestead Property Tax Credit for 2018 mean more taxpayers will be eligible for the credit and the credit calculation is more generous. Taxpayers should check to see if they are eligible even if they have not claimed a credit in recent years.
“We want Michigan taxpayers to be aware of tax credits they’re entitled to receive,” State Treasurer Rachael Eubanks said. “Homestead Property Tax Credits provide tax relief for eligible Michigan families and individuals. These tax credits can reduce tax owed and may provide a refund.”
During the 2017 tax year, almost 1 million taxpayers claimed the Homestead Property Tax credit, totaling about $530 million with an average credit of $533.
Taxpayers may claim a Homestead Property Tax Credit if ALL the following apply:
- Your homestead is in Michigan
- You were a resident of Michigan for at least six months during the year
- You own or are contracted to pay rent and occupy a Michigan homestead on which property taxes were levied
- If you own your home, your taxable value is $135,000 or less (unless unoccupied farmland)
- Your total household resources are $60,000 or less
Taxpayers who are required to file a state income tax return should claim the Homestead Property Tax Credit with their return. Taxpayers may file a Homestead Property Tax Credit claim by itself.
To learn more about the Homestead Property Tax Credit, the forms required to obtain the credit or state income taxes, go to www.michigan.gov/incometax and click on “Credits and Exemptions” at the bottom of the page.
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