Your homestead is the place where you have your permanent home. You can only have one homestead at a time and you must live there as well as being the owner or renter. Your homestead can be a rented apartment or a mobile home lot in a mobile home park. Cottages and second homes, property you own and rent or lease to others does not qualify as a homestead. College dormitories do not qualify as homesteads.

You may claim a property tax credit if all of the following apply:

• Your homestead (the place where you have your permanent home, the place you plan to return to whenever you go away) is in Michigan.
• You were a resident of Michigan for at least 6 months during the year.
• You own or rent and resided in a Michigan homestead on which property taxes were levied.
• Your household income is less than $82,650

Sample Property Tax Statement - Having some difficulty understanding which information you need from your property tax statement? While they all look a bit different, we do have an example of a statement that may help you understand where to find the information you need. Sample Property Tax Statement
 

MI-1040CR

MI-1040CR Instructions

MI-1040CR-2

MI-1040CR-2 Instructions

Form 2368 - Homeowner's Principal Residence Exemption Affidavit 

Application for Deferment of Summer Taxes and Special Assessments

If you are not required to file a Michigan Income Tax return (MI-1040), you can file your Homestead Property Tax Credit form (MI-1040CR) as soon as you know what your income was for the year. If you are filing a Michigan Income Tax return (MI-1040), submit the MI-1040CR/Homestead Property Tax Credit form with your MI-1040. The due date for filing a Michigan Income Tax return is April 15.

Most people should file the MI-CR. If you are blind and own your own homestead or are in the active military or an eligible veteran or the surviving spouse of a veteran, complete both the MI-1040CR and the MI-1040CR-2, Homestead Property Tax Credit Claim for Veterans and Blind People. Use the form that gives you the larger refund. If you are blind and rent, you cannot use the MI-1040CR-2. 

Household income includes all income received by all adult household members in the year, including income that might be exempt from federal adjusted gross income. For a complete listing, see Income and Deductible Items

If any portion of your rent was paid on your behalf by MSHDA, or any other governmental agency,  you are only allowed to claim the portion of your rent that you actually paid.  Do not claim any amount that was paid on your behalf by MSHDA or any other governmental agency.

Moved during the year - If you moved during the year and you rented, use rent from both residences to determine the total amount of rent paid. The combined rent should not be for more than 12 months. If you bought or sold your home, you must prorate your taxes between the locations. See the instructions for the MI-1040CR for more specifics.

Mobile Home Park Resident - You may claim $3 per month (12 months x $3 = $36) for a total of $36 and 20% of the yearly rent amount less the $36 (total yearly rent - $36 = lot rental without property tax; x 0.20) for the total amount.

If you paid additional taxes on attached buildings (garage, tool shed, etc.), then you may also claim that amount.

Public Housing - if the owner does not pay property tax or a service fee, you are not eligible to claim a property tax credit and a credit will not be issued.

Service Fee/Pilot (payment in lieu of taxes) 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. You can find out if a property is subject to Service Fee/Pilot Housing and get the allowable percentage of rent by contacting the landlord/management company. Often, the Service Fee/Pilot Housing is low income or senior citizen housing that can include apartment occupancy or the rental of a single family home.

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. The Income Tax Act provides that a renter living in Service Fee Housing must calculate the property tax credit using only the percentage of the service fee that is attributable to his or her rental property. FAQ's for Service Fee/Pilot Housing.

Alternate Property Tax Credit for Renters Age 65 or Older: An alternate credit is available only to renters age 65 or older whose rent is more than 40 percent of their household income. To calculate the alternate credit, subtract 40 percent of your household income from the total rent paid for the year. Renters who qualify for the alternate credit are encouraged to calculate the credit using both the standard and alternate methods to determine which gives them the larger credit. The larger credit should then be claimed. To determine if an individual qualifies for the alternate credit refer to worksheet 6 in the Michigan 1040 Individual Income Tax booklet.

Important Note: If your rental property is considered Service Fee/Pilot Housing you may not use 20% of your rent when calculating the Homestead Property Tax Credit. You may only use the percentage of your rent as property taxes that the landlord/management company tells you they are paying as a service fee, up to a maximum of 10%, when calculating the credit.

Nursing Home, Home for the Aged and Adult Foster Care - If the facility pays local property taxes, you may claim your portion of those taxes for credit. You may not claim rent or monthly fees for the property tax credit amount. If both you and your spouse live in the facility, add your shares together.

If one spouse lives in a nursing home or foster care home and the other spouse maintains a home, you may file a joint credit claim. Combine the tax for the homestead and the share of the facility's property tax to compute your claim.

If you are single and maintain a homestead (that is not rented to someone else) while living in a nursing home or adult care facility, you may claim either your homestead or your share of the facility's property tax, but not both. Use the one that gives you the larger credit.

Cooperative Housing - Ask to see a statement from the co-op giving the amount of taxes or the percentage of your monthly payment that is considered tax on your unit. Use your share of the property taxes on the building and 20% of the rent paid if the co-op is on leased land.

Shared Housing - When two or more single adults share a home, each may file a credit claim if each has contracted to pay rent or owns a share of the home. Each person should file an individual claim based on his or her household income and prorated share of the taxes or rent.

Principal Residence Exemption information - allows homeowners an exemption from their local School Operating Millage. Homeowners must file for an exemption and this link will provide additional information on the exemption process. Homeowner's Principal Residence Exemption