Skip to Content
Michigan

You may be eligible to receive money back

Homeowners and renters are missing out on millions of dollars in tax relief.  Use the resources below to learn more.

Michigan Program Overview

Michigan offers the Homestead Property Tax Credit and the Home Heating Credit for both renters and homeowners.  The maximum credit is $1,700.

Renters age 65+, whose rent is more than 40% of their total household resources, may qualify for an alternative credit. Homeowners may also be eligible for a Principal Resident Exception that exempts taxes levied by a local school district.

Property Tax-Aide also features the Poverty Exemption, Homeowners Property Exemption or HOPE (City of Detroit), and the Pay as You Stay or PAYS program for participating Wayne County municipalities.

Your state has active volunteers and organization partners that are available to help you complete your property tax relief application(s). If you’re interested in working with Property Tax-Aide support, visit our Contact us Page.

The information on this page is updated as new information becomes available by the relevant tax agencies.

Homestead Property Tax Credit (Homeowners)

Michigan's homestead property tax credit is how the State of Michigan can help you pay some of your property taxes if you are a qualified Michigan homeowner or renter and meet the requirements. You should complete the Michigan Homestead Property Tax Credit Claim MI-1040CR to see if you qualify for the credit.

The credit, for most people, is based on a comparison between property taxes and total household resources. Homeowners pay property taxes directly and renters pay them indirectly with their rent.

Eligibility

To qualify for the Michigan Homestead Property Tax Credit (1040CR):
  • Total household resources cannot be more than $67,300. If you are filing a part-year credit (for a deceased taxpayer or a part-year resident), you must annualize the total household resources to determine if the credit reduction applies. If 100% of your total household resources were received from the Michigan Department of Health and Human Services, you do not qualify.
  • You own and occupied a Michigan homestead for at least 6 months during the year on which property taxes and/or service fees were levied.
  • If you own your home, the taxable value was $154,400 or less (unless unoccupied farmland). Taxable value is found on your property tax statement sent to you by your county, city, township or village office. Do not use the State Equalized Value or Assessed Value.
  • Your homestead can be a mobile home on a lot in a mobile home park.
  • Cottages, second homes, property you own and rent/lease to others, and college dormitories do not qualify as a homestead.
Active Military, Veterans, Surviving Spouse of a Veteran or Blind Homeowners
  • If you are in the active military, are an eligible veteran, or an eligible veteran's surviving spouse, complete form MI-1040CR-2. If you are blind and own a homestead, complete form MI-1040CR. Use the form that gives you a larger credit.
Deceased Claimant
  • The estate of the taxpayer who died in 2023 or 2024 before filing a claim) may be entitled to a credit for 2024.
  • The surviving spouse, other authorized claimant or personal representative can claim this credit.
  • The surviving spouse is considered married for the year in which the deceased spouse dies and may file a joint credit for that year.
Nursing Home, Foster Care Home, Home for the Aged
  • Permanent occupants of a nursing home, foster care home, or home for the aged that is subject to property taxes may use the allocated share of the property taxes levied on the facility as taxes eligible for credit. Nursing home managers should have this information.
  • Single occupants of a nursing home, foster care home, or home for the aged who maintain an unrented homestead may claim either their homestead tax or their share of the facility's property taxes. Both may not be claimed. Use the one that gives you the larger credit.
  • Filers who maintain a homestead and their spouse lives in an adult care facility may file a joint credit claim by combining their spouse’s share of the facility's property tax and their homestead tax.
  • Credit is not allowed if your care facility charges are paid directly to the facility by a government agency.
For the Principal Residence Exemption:
  • A married couple, filing income tax returns jointly, are generally entitled to no more than one principal residence exemption.
Exceptions to the rule are:
  • The law allows a temporary, additional exemption for up to three years on an unoccupied homestead listed for sale.
  • Homeowners with a principal residence exemption currently residing in a nursing home, assisted living facility, or other location while convalescing and members of the armed services absent on active duty may maintain the exemption so long as they continue to own and maintain the property, they do not establish a new primary residence, and the property is not used for most commercial and business purposes.
  • A homeowner who vacates their home because of damage or destruction may maintain the exemption for up to three years as long as they demonstrate an intent to move back in.

Application Deadline

If you are not required to file an MI-1040, you may file your credit claim as soon as you know your 2023 total household resources and property taxes levied in 2023. If you file a Michigan income tax return, your credit claim should be included with your MI-1040 return and filed by April 15, 2024 to be considered timely. To avoid penalty and interest, if you owe tax, postmark your return no later than April 15, 2024. The filing deadline to receive a 2023 property tax credit is April 15, 2027

Required Documentation

When filing your tax return, include all taxable and nontaxable income you and your spouse received in 2023 that apply from the list below:
  • W-2s and 1099s
  • Business income from Federal Schedule C, C-EZ or E or F
  • 1099-Rs from pensions
  • 1099-INTs or 1099-DIVs
  • Alimony if divorce was granted prior to 2019 and other taxable income
  • Social Security, SSI and/or railroad retirement benefits and payment to minors or dependent adults who live with you
  • Child support and foster parent payments
  • Unemployment compensation
  • Gifts received or expenses paid on your behalf over $300
  • Workers'/veterans' disability compensation/pension benefits
  • FIP and other MDHHS benefits, excluding food assistance
  • Form AV-9A Certificate of Disability (if applicable)

Additional Information & Resources

Homestead Property Tax Credit (Renters)

In most cases, 23% of rent paid is considered property tax that can be claimed for credit through Michigan’s Homestead Property Tax Credit program.

Eligibility

To qualify:
  • Total household resources cannot be more than $67,300. If you are filing a part-year credit (for a deceased taxpayer or a part-year resident), you must annualize the total household resources to determine if the credit reduction applies. If 100% of your total household resources were received from the Michigan Department of Health and Human Services, you do not qualify.
  • You were contracted to pay rent and occupied a Michigan homestead for at least 6 months during the year on which property taxes and/or service fees were levied.
  • Renters must be under a lease or rental contract to claim rent for credit.
  • Your homestead can be a rented apartment on a lot in a mobile home park.
  • Cottages, second homes, property you own and rent/lease to others, and college dormitories do not qualify as a homestead.
The following are exceptions:
  • If you rent or lease housing subject to a service charge or fees paid instead of property taxes, you may claim a credit based upon 10% of the gross rent you paid.
  • If your housing is exempt from property tax and no service fee is paid, you are not eligible for a credit.
  • This includes university-or college-owned housing
  • If your housing costs are subsidized, base your claim on the amount you pay.
  • Do not include the federal subsidy amount.
  • If you are a mobile home park resident, claim the $3 per month specific tax.
Renters aged 65+
  • An alternative credit is available for those whose rent is more than 40% of their total household resources. A separate worksheet, Worksheet 4, in the MI-1040 booklet should be completed
Cooperative Housing Residents
  • If you are a cooperative housing corporation resident member, claim your share of the property taxes on the building. If you live in a cooperative where residents pay rent on the land under the building, you may also claim 23% of the land rent. Do not take 23 percent of your total monthly payment.
  • If you are a resident of a special housing facility, not noted previously, base your claim on rent only. Do not include other services.
  • If you pay rent with other services and you are unable to determine the portion that constitutes rent only, you may determine your portion of the property taxes that can be claimed for credit based on square footage or divide the taxes by the number of residents for whom the house is licensed to care.
Active Military, Veterans, Surviving Spouse of a Veteran or Blind Renters
  • If you are in the active military, are an eligible veteran, or an eligible veteran's surviving spouse, complete form MI-1040CR-2. If you are blind and rent a homestead, complete form MI-1040CR. Use the form that gives you a larger credit.
Nursing Home, Foster Care Home, Home for the Aged
  • Permanent occupants of a nursing home, foster care home, or home for the aged that is subject to property taxes may use the allocated share of the property taxes levied on the facility as taxes eligible for credit. Nursing home managers should have this information.
  • Single occupants of a nursing home, foster care home, or home for the aged who maintain an unrented homestead may claim either their homestead tax or their share of the facility's property taxes. Both may not be claimed. Use the one that gives you the larger credit.
  • Filers who maintain a homestead and their spouse lives in an adult care facility may file a joint credit claim by combining their spouse’s share of the facility's property tax and their homestead tax.
  • Credit is not allowed if your care facility charges are paid directly to the facility by a government agency.

Application Deadline

If you are not required to file an MI-1040, you may file your credit claim as soon as you know your 2023 total household resources and property taxes levied in 2023. If you file a Michigan income tax return, your credit claim should be included with your MI-1040 return and filed by April 15, 2024 to be considered timely. To avoid penalty and interest, if you owe tax, postmark your return no later than April 15, 2024. The filing deadline to receive a 2023 property tax credit is April 15, 2027

 

Required Documentation

A copy of all signed leases
When filing your tax return, include all taxable and nontaxable income you and your spouse received in 2023 that apply from the list below:
  • W-2s and 1099s
  • Business income from Federal Schedule C, C-EZ or E or F
  • 1099-Rs from pensions
  • 1099-INTs or 1099-DIVs
  • Alimony if divorce was granted prior to 2019 and other taxable income
  • Social Security, SSI and/or railroad retirement benefits and payment to minors or dependent adults who live with you
  • Child support and foster parent payments
  • Unemployment compensation
  • Gifts received or expenses paid on your behalf over $300
  • Workers'/veterans' disability compensation/pension benefits
  • FIP and other MDHHS benefits, excluding food assistance

Additional Information & Resources

Michigan Home Heating Credit (For Homeowners & Renters)

Michigan Home Heating Credit helps pay the heating expenses for eligible Michigan homeowners and renters with low income. Over the last 5 years, 257,500 Michigan residents received the Home Heating Credit, which averaged $209. For questions about eligibility, please visit the Home Heating Credit information page on the Michigan Department of Treasury website.

Eligibility

To qualify:
  • Your homestead must be in Michigan
  • You must own a home or have a lease agreement to pay rent where you live
  • You cannot live in college- or university-operated housing (including dormitories, residence halls, or apartments)
  • Your household resources must be within the income limits listed on the Home Heating Credit application.

Application Deadline

The final date for filing a 2023 home heating credit is September 30, 2024. (Your claim must be postmarked by September 30, 2024) The filing of an extension for income taxes does not extend the due date for the home heating credit. File early to receive priority processing.

Required Documentation

  • Social Security numbers for all household members
  • Total household resources, including all taxable and non-taxable income
  • Name of your heat provider
  • Heating bills between 11/1/2022 and 10/31/2023
  • What taxpayer paid in medical insurance or HMO premiums

Additional Information & Resources

For questions about eligibility, please visit the Home Heating Credit information page on the Michigan Department of Treasury website.

Poverty Exemption

This is an exemption for the principal residence of persons who, in the judgment of the local unit of government, by reason of poverty, are unable to contribute to the public charges.

Eligibility

  • The state of Michigan requires local governments/units to adopt guidelines that must include the specific income and asset levels of the applicant and the total household income and assets.
  • The adopted income levels shall not be set lower than the federal poverty guidelines published in the prior calendar year in the Federal Register by the United States Department of Health and Human Services. For example, the federal income threshold in 2023 for a family of 2 was $18,310 and $13,590 for a family of 1.

Application Deadline

File a Poverty Exemption Application any time after January 1st. The final due date is the day before the last day of the Board of Review. It is recommended to file prior to December 1.

Contact your local city or township assessor for specific dates.

Required Documentation

Required documentation includes:
  • Completed Poverty Exemption application, Form 5737, which must be filed by the applicant with Form 5739, Affirmation of Ownership and Occupancy to Remain Exempt by Reason of Poverty
  • Form 4988, Poverty Exemption Affidavit (used by applicants who are not required to file federal and state income tax returns).
  • If required to file a federal and state income tax return, then please attach copies of returns for all persons residing in the household, including any property tax credit returns filed in the immediately preceding year or in the current year.
Your local assessor may also ask you to provide:
  • Evidence of ownership, like a deed or land contract
  • Proof of identity, like a driver’s license or other valid form of identification

Additional Information & Resources

For more information:

Visit the Michigan Poverty Exemption from Property Taxes webpage from the Michigan State University Low-Income Taxpayer Clinic.

Or see the Michigan Tax Tribunal’s website or contact the MTT at 517-335-9760.

Questions can also be directed to your Board of Review in the city or township where your property is located.

Homeowners Property Exemption (HOPE)

The Homeowners Property Exemption (HOPE) program is a City of Detroit program that helps low-income homeowners eliminate or lower their CURRENT year property taxes. Residents who are approved for (HOPE) are eligible for Pay as You Stay (PAYS), which reduces delinquent property taxes owed to the Wayne County Treasurer. More about the PAYS program below.

Eligibility

To qualify:
  • Each applicant must own and occupy the property as his/her primary Homestead as of December 31, 2023
  • Your household income or circumstances must fall within income guidelines (link to income guidelines table provided below)
  • Homestead must be on file with the Office of the Assessor
  • Homeowners may be granted a 100% exemption, 50% exemption, 25% exemption. A 10% exemption may be granted if household suffered a 20% loss in income or subject property is in a foreclosure year. Regarding a Homestead Property Tax Credit that is forwarded to the City of Detroit, the proportioned amount remaining shall be exempt in whole or in part in accordance with the decision of the Board of Review

Application Deadline

2024 applications are required to be filed by November 1, 2024.

Required Documentation

To be considered for an exemption on your property taxes, the applicant is required to submit the following to the Board of Review:
  • A completed Michigan Department of Treasury Form 5737 (Application for MCL 211.7u Poverty Exemption) and Form 5739 (Affirmation of Ownership and Occupancy),
  • Registered proof of ownership (Deed, land contract, probate court order, divorce judgment etc.),
  • Any form of government ID with address and picture of the homeowner and all residents over the age of 18,
  • Proof of income for ALL members of the household (this includes any minor children). Examples: W2’s, paystubs, SSI/SSD, pension FIA/DHS, child support, self-employment, signed and notarized letter from who is helping you financially, etc.
  • 2022 Federal and State tax returns for all adults, if filed (if are not required to file a tax return, the adult must complete a Michigan Treasury Form 4988 Poverty Exemption Affidavit and IRS 4506-T and can provide W2’s, social security statements, or any other document that proves the past year’s income),
  • Proof of residency for all minors in the household (such as FIA Statement, Report Card, Transcript, minor listed on tax return, etc.)

Additional Information & Resources

To learn more or to review the income guidelines table for this program, please visit the HOPE page from the City of Detroit.

You can also inquire about free property tax assistance by calling (313) 244-0274 to speak with a representative from Wayne Metro.

Pay as You Stay (PAYS) Program

The Pay As You Stay (PAYS) program may reduce the amount of delinquent taxes owed for lower income residents who own and occupy their residence and live in a municipality in Wayne County that has opted into the program.

Eligibility

To be eligible for the PAYS program:
  • Homeowners must apply for Poverty Tax Exemption (PTE) through their local assessor's office and have it approved.
  • In Detroit, You must be granted a HOPE in order to be eligible for PAYS.

Application Deadline

If you are eligible for the PAYS program, the Wayne County Treasurer’s Office will receive your information from your local municipality and will contact you to fill out a PAYS application.

Required Documentation

  • If deemed eligible, after notification from your local assessor's office, you will be contacted by the Wayne County Treasurer's Office via mail on your next steps to enroll into the PAYS payment agreement (or pay a discounted lump sum).

Additional Information & Resources

For more information, go to treasurer.waynecounty.com or contact the office by email at [email protected] or call 313-224-5990.

Property Tax-Aide has independently selected the property tax relief programs featured on this website that we think are the most relevant and beneficial to older adults. It is not an exhaustive list of all property tax relief programs available in each state. Please consult your local tax agency for a comprehensive listing of property tax relief programs in your area.

No-Cost Application Assistance

Your state has active volunteers and organization partners that are available to help you complete your property tax relief application(s). If you’re interested in working with Property Tax-Aide support, click the Contact Us button and complete the information form.

Back to top