Michigan Principal Residence Exemption: 18 Mills Off School Tax, Plus an Income-Based Credit
Updated August 2026
Michigan's main homeowner benefit isn't a dollar exemption, it exempts your primary residence from the local school operating tax (up to 18 mills). A separate income-tax credit provides additional relief for lower-income households.
Every Michigan homeowner who occupies their home as a principal residence is exempt from up to 18 mills of school operating tax, with savings that scale with your home's value and local mill rate rather than a flat dollar figure. Lower-income households can additionally claim a refundable credit on their state income tax return.
Michigan's Property Tax Relief Programs
Principal Residence Exemption (PRE)
What it does: Exempts the home from the local school district operating tax, up to 18 mills (you still pay all other millages). Savings scale with home value and local mill rate, not a flat dollar figure.
Who qualifies: Any owner-occupant whose principal residence matches their driver’s license/voter registration address. No age or income test.
Deadline and form: June 1 (summer levy) or November 1 (winter levy) (Form 2368). Citation: MCL 211.7cc, 211.7dd; MCL 380.1211.
Homestead Property Tax Credit (HPTC)
What it does: Refundable income tax credit, generally 60% of the amount property tax exceeds 3.2% of total household resources, capped at $1,900 for tax year 2025.
Who qualifies: Total household resources at or below $71,500; home’s taxable value at or below $165,400 (2025 figures, both indexed annually).
Deadline and form: Filed with your annual state income tax return (Form MI-1040CR). Citation: MCL 206.520.
An exemption or credit lowers your bill only after the assessed value is set. If that value is too high to begin with, you are overpaying on everything above it regardless of which relief programs you claim. Nobody checks the underlying value unless you do.
How to Apply
- Contact your county assessor's (or, where noted above, your state revenue department's) office for the current application form
- Gather proof of ownership, occupancy, and, for income-tested programs, your prior-year income documentation
- File before the deadline listed above, most jurisdictions do not accept late applications for that tax year
- Confirm the relief shows up on your next assessment notice or tax bill
The Bottom Line
Don't expect a flat dollar figure for the PRE, it's a rate exemption, not an assessed-value exemption, so the actual savings depend on your local school mill rate. The income-tax credit is where a specific, if variable, dollar benefit shows up.
Note: Program names, dollar figures, and income limits above are current as of August 2026 and are set or adjusted by the state legislature or department of revenue, not by AppealDesk. Some figures adjust annually, confirm the current-year number with your county or state before applying. AppealDesk helps homeowners identify available relief programs and appeal overassessments.
Most homeowners stack these programs on top of whatever value the assessor assigned and never question the value itself. It came from a mass-appraisal model, not an individual review of your home. It is worth checking once.
