Michigan Homestead Exemption: Rules & Savings

Michigan property-tax guide • reviewed September 1, 2026

Michigan Homestead Exemption: Rules, Savings, PRE Filing Steps and Property Tax Credit Help

In Michigan, “homestead exemption” usually means the Principal Residence Exemption, often called PRE.

The PRE removes your owner-occupied principal residence from local school operating millage, up to 18 mills.

Michigan also has a separate Homestead Property Tax Credit filed with your state income tax return.

These two programs are different. One reduces a property tax bill. The other can create an income-tax credit for qualified homeowners or renters.

01

Fast answer

Michigan Homestead Exemption Quick Facts

Main property-tax exemption Principal Residence Exemption

Michigan’s PRE applies to the home you own and occupy as your true, fixed and permanent home.

What PRE saves Up to 18 school operating mills

PRE does not remove all school taxes, all county taxes or the 6-mill State Education Tax.

File with City or township assessor

Form 2368 must be filed with the assessor where the property is located, not directly with Treasury.

Summer deadline June 1

A valid Form 2368 filed by June 1 can apply beginning with the current summer tax levy.

Winter deadline November 1

A valid Form 2368 filed after June 1 and by November 1 can apply beginning with the winter tax levy.

Separate income-tax benefit MI-1040CR credit

The Homestead Property Tax Credit is claimed on a Michigan income tax return, not on the local PRE affidavit.

Most important distinction:

PRE is a property-tax exemption handled locally. The Homestead Property Tax Credit is an income-tax credit handled through Michigan Treasury.

02

Who handles what

Michigan Homestead Offices, Contacts and Map

City or Township Assessor

Use for: PRE Form 2368, local exemption status, assessment notice, taxable value, property classification and local Board of Review issues.

Where to find it: your summer tax bill, winter tax bill, annual assessment notice, city website or township website.

Important: Michigan Treasury says individual property records are kept locally, not at the state office.

City, Township or County Treasurer

Use for: tax bills, tax payments, due dates, receipts, delinquent taxes and summer tax deferment forms.

Local difference: summer and winter tax collection can vary by city, township and county.

Tip: if PRE is approved after a bill was issued, ask the billing treasurer how corrected bills or refunds are handled.

Michigan Department of Treasury — PRE Unit

Use for: statewide PRE guidance, Treasury PRE audits, denial questions and state forms.

PRE phone: 517-335-7487

PRE audit call center: 888-909-2799, Monday–Friday, 9:00 AM–5:00 PM ET

General PRE email: PTE-Section@michigan.gov

Michigan Tax Tribunal

Use for: many PRE denial appeals when the denial came from a local assessor or county official.

Phone: 517-335-9760, Monday–Friday, 8:00 AM–4:30 PM ET

Email: taxtrib@michigan.gov

Mail: Michigan Tax Tribunal, PO Box 30232, Lansing, MI 48909

Michigan Department of Treasury

430 West Allegan Street
Lansing, MI 48922

This is a state-office reference for Treasury issues.

Do not mail Form 2368 here. File PRE with the city or township assessor where the property is located.

03

PRE rules

What the Michigan Principal Residence Exemption Actually Does

A Principal Residence Exemption exempts an owner’s principal residence from local school district operating taxes, up to 18 mills.

It does not erase the full property tax bill. County, city, township, special assessment, debt, school debt and the State Education Tax may still appear.

Own + occupyTrue permanent home
File Form 2368With local assessor
PRE postsUsually shown as a percentage
School operating mills removedUp to 18 mills

Principal residence: the one place where you have your true, fixed and permanent home.

Occupancy: the address should match your real life, including driver’s license, voter registration and tax-return address when applicable.

Vacation homes: seasonal homes and income properties do not qualify as your principal residence.

Contiguous land: adjoining unoccupied residential or timber-cutover land can be included when it meets the statutory definition.

Partial PRE: multi-unit, business-use or partly rented property may receive less than 100% PRE.

04

Step-by-step

How to File Michigan Form 2368 for the PRE

  1. Find your local assessor.

    Use your tax bill, assessment notice, city website or township website.

    Michigan PRE is filed locally, not through one statewide application portal.

  2. Download Form 2368 or ask the assessor for it.

    Form 2368 is the Principal Residence Exemption Affidavit.

    Use the current Michigan Treasury form.

  3. Enter property information exactly.

    Use the property tax identification number from the tax bill or assessment notice.

    File a separate affidavit for each property tax identification number being claimed.

  4. Certify ownership and occupancy.

    List the date you owned and occupied the property as your principal residence.

    Do not list a co-owner who does not occupy the property as a principal residence.

  5. Disclose other Michigan or out-of-state claims.

    The form asks whether you or your spouse claimed another Michigan PRE.

    It also asks about similar exemptions, credits or deductions in another state.

  6. Submit to the city or township assessor.

    Mail or deliver it to the local assessor where the property is located.

    Do not send Form 2368 directly to the Michigan Department of Treasury.

  7. Save proof.

    Keep a copy of the signed form and proof of delivery.

    Check the next tax bill or assessment record to confirm the PRE percentage.

05

Dates

Michigan PRE Deadlines, Late Filing and Rescission Rules

June 1 Summer + winter levy

File Form 2368 on or before June 1 to receive PRE beginning with the current year summer levy.

November 1 Winter levy

File after June 1 and on or before November 1 to receive PRE beginning with the current year winter levy.

Within 90 days Rescind if no longer eligible

File Form 2602 when the property is no longer your principal residence.

Missed both PRE deadlines?

Michigan guidance says the assessor may retroactively grant PRE for the current and previous three calendar years if the owner met PRE requirements by the June 1 or November 1 deadline for each year claimed.

Penalty warning:

Failure to rescind when the property is no longer your principal residence can lead to additional tax, interest and penalties. Michigan guidance also lists a $5 daily penalty up to $200 for failing to file the rescission on time.

06

Savings

How Much Can the Michigan Homestead Exemption Save?

PRE savings depend on your property’s taxable value and the local school operating millage removed by the exemption.

A common maximum example is 18 mills. That equals $18 for every $1,000 of taxable value.

Simple PRE savings example

Taxable value: $120,000

School operating mills removed: 18 mills

Estimated PRE savings: $120,000 × 18 ÷ 1,000 = $2,160

Open simple PRE savings calculator

Estimated PRE savings: $2,160.00

This is an educational estimate. It is not an official tax bill and does not include city, county, debt, special assessment, state education tax or taxable-value uncapping changes.
07

Separate benefit

Michigan Homestead Property Tax Credit: Not the Same as PRE

The Homestead Property Tax Credit helps qualified Michigan homeowners and renters with property taxes or rent treated as property tax.

It is filed with Michigan income taxes using forms such as MI-1040CR or MI-1040CR-2.

2025 return filed in 2026 $1,900 credit limit

Michigan’s 2025 credit information lists the maximum credit at $1,900.

2025 taxable value limit $165,400

For homeowners, the homestead taxable value limit applies to the credit calculation.

2025 THR limit $71,500

Total household resources must be under the tax-year limit, which can change annually.

The 2026 income-tax-year limits may differ when Michigan publishes those forms.

Always use the tax-year page and form instructions for the return you are filing.

08

Special cases

Senior, Disability, Veteran, Military, Trust and Low-Income Rules

Senior homeowners: Michigan does not use a single statewide “senior homestead exemption” that automatically removes a fixed dollar amount from every senior’s bill. Seniors should check the Homestead Property Tax Credit, summer tax deferment and local poverty exemption rules.

Summer tax deferment: qualifying senior, disabled, blind, paraplegic, quadriplegic, hemiplegic, eligible serviceperson, eligible veteran or eligible surviving-spouse taxpayers may be able to defer summer taxes when income rules are met.

Disabled veterans: Michigan has a separate disabled veterans property tax exemption using State Tax Commission Form 5107. It is filed with the local assessing unit, not with Treasury.

Active-duty military: Form 4660 may help retain a PRE during qualifying active-duty absence when the property is rented or leased.

Conditional rescission: Form 4640 can let an owner keep PRE on a previous Michigan principal residence for up to three years if the property is for sale, not occupied, not leased and not used for business.

Trust ownership: the grantor or beneficiary who occupies the home may be the proper signer when trust terms provide a qualifying ownership right.

Low-income hardship: the MCL 211.7u poverty exemption is handled by the local assessing unit or Board of Review and requires annual application and documentation.

09

Denials and audits

What to Do If a Michigan PRE Is Denied or Audited

PRE denials can come from a local assessor, a county official or the Michigan Department of Treasury.

Appeal route and deadline depend on who issued the denial.

Local assessor or county denial Michigan Tax Tribunal

File the PRE appeal within 35 days from the date of the denial.

Treasury denial Department appeal path

File with Treasury within 35 days from the date you received the denial notice.

Treasury audit questionnaire 30 days

Return Form 4632 audit materials on time, even if you no longer own the property.

Audit warning:

If PRE is denied after an audit, corrected bills can include the school operating tax that was previously exempted, plus interest and penalties.

10

Property record decoder

Where to Look on a Michigan Property Tax Record

PRE percentage: often shown as 100%, 0% or a partial percentage on assessment and tax records.

Taxable value: the key value for estimating current-owner property taxes and PRE savings.

SEV: State Equalized Value is commonly used for future-owner estimates because taxable value may uncap after transfer.

School district: determines which operating millage is being removed by PRE.

Local unit: city, township or village controls where forms are filed and who bills taxes.

Special assessments: may still apply even when PRE is active.

No single statewide parcel portal:

Michigan property records are maintained locally. Use your county, city or township property search if available, and verify official data with the local assessor.

11

Avoid problems

Common Michigan Homestead Mistakes

Calling it the wrong program: PRE and the Homestead Property Tax Credit are not the same thing.

Mailing Form 2368 to Treasury: the form must go to the city or township assessor where the property is located.

Using market value for savings: PRE savings are usually estimated from taxable value, not market value.

Forgetting to rescind: file Form 2602 within 90 days when the property is no longer your principal residence.

Assuming the seller’s tax bill predicts yours: taxable value can uncap after a transfer of ownership.

Ignoring out-of-state exemptions: Form 2368 asks about similar exemptions, credits or deductions in another state.

Missing partial-use rules: duplex, rental, business-use or multi-dwelling property may need a partial PRE.

Not answering an audit letter: Treasury audit questionnaires must be returned on time.

12

Decision path

What Should You Do Next?

I bought and moved into a Michigan home

Find the city or township assessor, file Form 2368 and keep a copy.

I missed June 1

File by November 1 for winter levy treatment when eligible.

I missed both deadlines

Ask the local assessor whether retroactive PRE can be granted for the current and previous three years.

I moved out

File Form 2602 within 90 days, or review Form 4640 if conditional rescission may apply.

My PRE was denied

Read the denial notice immediately and calculate the 35-day appeal deadline.

I need income-based help

Review MI-1040CR, MI-1040CR-2, Form 471 and local poverty exemption rules.

13

Important notice

Independent Information, Tax Caution and Property-Records Notice

This page is independent informational content.

It is not the official website of the Michigan Department of Treasury, Michigan Tax Tribunal, State Tax Commission, any county, city, township or local assessor.

It is not legal advice, tax advice, an official bill, an assessment notice, an exemption decision or a Treasury determination.

Verify filing deadlines, eligibility, forms, taxable values, millage rates and appeal procedures directly with the responsible government office before acting.

Property records should be used for property-tax, appraisal, ownership-reference and public-record purposes only.

Do not use property-record information for employment screening, tenant screening, credit eligibility, insurance underwriting or any FCRA-regulated purpose.

14

FAQs

Michigan Homestead Exemption FAQs

What is the Michigan homestead exemption?

Michigan’s main property-tax homestead exemption is the Principal Residence Exemption, or PRE. It exempts a qualifying principal residence from local school operating millage, up to 18 mills.

Is the Michigan Homestead Property Tax Credit the same as the PRE?

No. The PRE is a property-tax exemption filed with the local city or township assessor. The Homestead Property Tax Credit is an income-tax credit claimed on Michigan tax forms such as MI-1040CR or MI-1040CR-2.

Where do I file Michigan Form 2368?

File Form 2368 with the assessor for the city or township where the property is located. Do not send Form 2368 directly to the Michigan Department of Treasury.

What are the Michigan PRE filing deadlines?

File by June 1 to receive PRE beginning with the current summer tax levy. File after June 1 and on or before November 1 to receive PRE beginning with the current winter tax levy.

How do I estimate Michigan PRE savings?

Multiply the property’s taxable value by the school operating mills removed by PRE, then divide by 1,000. For example, $120,000 taxable value times 18 mills divided by 1,000 equals $2,160.

Does PRE exempt all Michigan property taxes?

No. PRE removes local school operating millage up to 18 mills. Other taxes, debt levies, special assessments and the State Education Tax may still apply.

What if I missed the June 1 and November 1 PRE deadlines?

Michigan guidance says the local assessor may retroactively grant PRE for the current and previous three calendar years if the owner met PRE requirements by the required June 1 or November 1 date for each year claimed.

What form removes a Michigan PRE when I move?

Use Form 2602, Request to Rescind Principal Residence Exemption. File it with the local assessor within 90 days after the property is no longer your principal residence.

Can a Michigan disabled veteran get a full property tax exemption?

Michigan has a separate disabled veterans property tax exemption under MCL 211.7b. Eligible veterans or surviving spouses generally use State Tax Commission Form 5107 and file with the local assessing unit.

Who handles a PRE denial appeal?

If a local assessor or county official issued the denial, the appeal is generally filed with the Michigan Tax Tribunal within 35 days from the date of denial. If Treasury issued the denial, follow the Treasury appeal instructions in the denial notice.

15

Official resources

Official Michigan Homestead and Property-Tax Resources

Leave a Comment