You may claim a property tax credit if all of the following apply:
- Your homestead is located in Michigan.
- You were a Michigan resident at least six months of 2013
- You pay property taxes or rent on your Michigan homestead
You can have only one homestead at a time, and you must be the occupant as well as the owner or renter. Your homestead can be a rented apartment or a mobile home on a lot in a mobile home park. A vacation home or income property is not considered your homestead.
Your homestead is in your state of domicile. Domicile is the place where you have your permanent home. It is the place to which you plan to return whenever you go away. Even if you spend the winter in a southern state, your domicile is still Michigan.
College students and others whose permanent homes are not in Michigan are not Michigan residents. Domicile continues until you establish a new permanent home.
Property tax credit claims may not be submitted on behalf of minor children.
You may not claim a property tax credit if your household income is over $50,000. The computed credit is reduced by 10 percent for every $1,000 (or part of $1,000) that household income exceeds $41,000. If filing a part-year return, you must annualize household income to determine if the income limitation applies. In addition, you may not claim a property tax credit if your taxable value exceeds $135,000 (excluding vacant farmland classified as agricultural).