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 Homestead Property Tax Credit Claim form (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.
Given that each taxpayer has unique circumstances that determine their eligibility for the credit, the Department of Treasury encourages you to review the information below and/or contact a tax professional.
What is a “Homestead”?
Your homestead is the place where you have your permanent home. It is the place to which you plan to return whenever you go away. You must be the owner and occupant or be contracted to pay rent and occupy the dwelling. You can only have one homestead at a time. Cottages, second homes and property you own and rent/lease to others does not qualify as a homestead. College dormitories do not qualify as homesteads.
Who qualifies for a Homestead Property Tax Credit?
You may claim a property tax credit if all of the following apply beginning 2012:
- 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
- Your total household resources are $50,000 or less(Part year residents must annualize total household resources to determine if a credit reduction applies)
If 100% of your total household resources are received from the Department of Human Services, you do not qualify
You may claim a property tax credit if all of the following apply for 2011 and prior years:
- 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
- Your household income is $82,650 or less(Part year residents must annualize household income to determine if a credit reduction applies)
If 100% of your total household income is received from the Department of Human Services, you do not qualify
Checklist for Determining Total Household Resources
2011 and Prior Years – Checklist for Determining Household Income
Checklist for Preparing a Homestead Property Tax Credit
Sample Property Tax Statement – Review the sample statement to understand where to find the information you need. Sample Property Tax Statement