Michigan Taxpayers Encouraged to Check Eligibility for Homestead Property Tax Credit

Michigan taxpayers could be leaving hundreds of dollars on the table if they aren’t checking their eligibility for the Homestead Property Tax Credit, according to the Michigan Department of Treasury.

Individuals with total household resources of $71,500 or less may qualify for the credit, which provides property tax relief for eligible homeowners and renters. The tax credit is calculated by comparing property taxes to total household resources, offering support to those whose housing costs take a higher share of income.

“We want taxpayers to be aware of the tax credits they’re entitled to receive,” said Deputy State Treasurer Kavita Kale, who oversees Treasury’s Revenue Services programs. “The Homestead Property Tax Credit provides meaningful tax relief for eligible Michigan families and individuals. The credit can reduce taxes owed and may result in the refund.”

Last year, during the 2025 filing season, nearly 1.1 million claimants received the Homestead Property Tax Credit, being awarded about $900 million collectively. The average credit was $820.

Taxpayers may claim a Homestead Property Tax Credit if all of 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 $165,400 or less (unless unoccupied farmland).
• Your total household resources are $71,500 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 without filing a return.

Return processing update

Treasury continues to receive and process state individual income tax returns. To date, the Michigan Department of Treasury has processed more than 2 million returns and distributed $1.2 billion in refunds.

“We are making progress processing returns and issuing refunds,” Kale said. “Although most returns are processed and refunds issued within four-to-six weeks, there are some who filed early in the season that are taking more time than typical. My team is working as fast as practical to process those returns.”

Taxpayers are asked to allow 4-to-6 weeks for electronically filed returns and 6-to-8 weeks for mailed returns to process and refunds to be issued.

Taxpayers are encouraged to check the status of their refund through Michigan Treasury eServices or through the department’s automated phone system. Please note repeated calls to the contact center may increase call waiting times.

Treasury is collecting feedback from taxpayers regarding their experience and working to improve systems.

To learn more about the Homestead Property Tax Credit, other tax credits or Michigan’s individual income tax, go to www.michigan.gov/incometax.

 The state’s individual income tax filing deadline is April 15.