Does Michigan have a homestead exemption?
Yes, but Michigan usually does not use the phrase “homestead exemption” for its main property-tax residence exemption. Michigan’s official term is the Principal Residence Exemption, often shortened to PRE.
The PRE can exempt an owner’s principal residence from the local school operating millage, up to 18 mills. It does not remove every property tax charge on the bill. It is also not the same thing as the Michigan Homestead Property Tax Credit.
If you are trying to protect your home equity in bankruptcy, that is a different legal topic. This guide is only about Michigan’s property-tax Principal Residence Exemption.
Independent note: HomesteadExemption.org is not a government agency, assessor’s office, property appraiser, tax collector, law firm, tax-prep company, or filing service. Use this guide to understand the process, then confirm your situation with your city or township assessor.
Michigan PRE rules are handled through state law, state Treasury guidance, and your local city or township assessor. The main state starting point is Michigan Treasury’s Principal Residence Exemption page.
The Michigan PRE in plain English
A Principal Residence Exemption is Michigan’s homestead-style property-tax exemption for an owner-occupied main home.
Michigan defines a principal residence as the one place where the owner has a true, fixed, and permanent home and intends to return when away. That definition matters. A cottage, vacation place, seasonal home, rental home, or income property is not your principal residence just because you own it.
The PRE is shown on property tax records as a percentage. A normal single-family home used entirely as the owner’s principal residence may show 100% PRE. A duplex, mixed-use property, home with a separate second residence on the parcel, or property partly used for business may have only a partial PRE. The right percentage is a local assessing question.
Do not confuse two Michigan programs. The PRE is a property-tax exemption filed with the local assessor. The Michigan Homestead Property Tax Credit is an income-tax credit claimed through Michigan income tax filings. This article is about the PRE only.
Where Michigan homeowners usually start
Start with the assessor for the city or township where the property is located. Michigan uses state PRE forms, but the ordinary homeowner filing starts locally.
Look at your most recent tax bill or assessment notice. You are looking for three things:
- Your property tax identification number or parcel number.
- The city or township that assesses the property.
- The PRE percentage already on the property, if any.
If the home is your Michigan principal residence and the PRE is missing or incorrect, ask the local assessor how to submit Michigan Form 2368, Principal Residence Exemption Affidavit.
Basic filing path
- Confirm that you own the home and occupy it as your principal residence.
- Download or request Form 2368.
- Complete a separate affidavit for each property tax identification number you are claiming.
- File the affidavit with the city or township assessor where the property is located.
- Keep a copy and proof of filing, such as a date-stamped copy or other written confirmation.
Who may qualify for the Michigan Principal Residence Exemption?
In simple cases, the person applying is a Michigan resident who owns and occupies the home as their principal residence. But Michigan’s rules include more detail than that.
An eligible owner may include a person who owns the property, a partial owner, or a person buying under a land contract. Certain life estate holders, certain trust grantors or beneficiaries, owners of dwellings on leased land, cooperative housing corporations, and some other specifically listed ownership situations may also be covered.
Renters do not qualify for the PRE because the PRE is based on ownership. A lease with an option to buy is not the same as a land contract. A business entity, such as an LLC, can also create problems because Michigan’s PRE rules focus on qualifying owners under state law, not just who lives in the home.
Title problems are common. If the deed, land contract, trust, life estate, divorce order, or estate papers do not match the person living in the home, do not guess. Ask the assessor what documents they need. For legal title questions, consider speaking with a Michigan attorney.
Important deadlines for Form 2368
Michigan has two regular PRE filing deadlines:
| When Form 2368 is validly filed | When the PRE usually begins |
|---|---|
| On or before June 1 | Current year’s summer and winter tax levies |
| After June 1 and on or before November 1 | Current year’s winter tax levy and future levies, if the home remains eligible |
The exemption can stay on the property for future years as long as the owner continues to meet the PRE requirements. You generally do not refile every year for the same home just because another year has started.
Deadline warning: A closing packet can include PRE paperwork, but you should not assume the form was filed or accepted. Check with the city or township assessor after closing, especially if your tax bill still shows no PRE or only a partial PRE.
If you missed the Michigan PRE deadline
Missing June 1 or November 1 does not always mean the issue is over. Michigan Treasury guidance says an owner may file Form 2368 and claim the PRE for the current and previous three calendar years, if the owner met the requirements for the years being claimed.
The assessor may grant the exemption if the assessor believes the owner qualified. This can be done at any time during the year.
Since July 11, 2022, the July and December Board of Review do not have authority to grant untimely PRE claims. For a late PRE claim, start with the assessor, not the Board of Review.
If the owner died before filing, the estate may be able to file Form 2368 for the current and previous three calendar years if the deceased owner occupied the property as a principal residence on the required June 1 or November 1 date and the PRE was not on the tax roll. The personal representative or trustee should ask the assessor how to handle the filing.
Documents and facts you may need
Form 2368 asks for the property tax identification number, city or township, county, property address, owner information, date the property was owned and occupied, and the percentage of the property used as the owner’s principal residence. It also asks about other Michigan PRE claims, similar exemptions in another state, and nonresident or out-of-state resident income tax filings.
The assessor, Michigan Department of Treasury, county treasurer, or county equalization director may ask for documents to prove eligibility. Useful records may include:
- Driver’s license or state ID showing the home address.
- Voter registration record.
- Vehicle registration.
- Michigan income tax returns showing the mailing address.
- Utility bills showing active service and the billing address.
- Bank, insurance, medical, or other records tied to the home address.
- Deed, land contract, trust, life estate, estate, or divorce documents when ownership is unclear.
No single document always proves the case by itself. Michigan looks at the total facts. The owner has the burden to show that the home was the true principal residence.
Common situations that cause PRE trouble
Second homes and seasonal homes
You cannot choose the property with the larger tax savings if it is not your true principal residence. A lake house, cabin, or seasonal home is not eligible just because you stay there often.
Another state exemption
Michigan can deny the PRE if you or your spouse claim a substantially similar principal-residence or homestead-style exemption, deduction, or credit on property in another state, subject to specific married-filing situations. If you moved from another state, confirm that any prior homestead-style exemption was handled correctly before you claim Michigan PRE.
Trusts and inherited homes
A trust does not automatically solve PRE eligibility. Michigan’s guidance says the grantor of a revocable trust or qualified personal residence trust may qualify in certain cases. A beneficiary may qualify only if the trust or will gives ownership rights that meet the PRE rules. When a person dies without a valid will, ownership may depend on Michigan intestate succession rules.
If you inherited a home and now live there as your principal residence, start by showing the assessor how you own it. If the prior owner died and no one eligible occupies the property as a principal residence, the old PRE may need to be rescinded.
Partial use, rentals, duplexes, and business use
If you rent part of the property, use part for business, own a duplex, or have more than one residence on a parcel, the PRE may be partial. Form 2368 asks for the percentage of the property occupied by the owner as a principal residence. Ask the local assessor how to calculate the percentage.
Parcel splits or combinations
If a parcel is split or combined and new parcel numbers are assigned, Michigan guidance says a new Form 2368 must be filed if the new parcel or parcels qualify.
If you move out, sell, divorce, or the owner dies
When the property is no longer the owner’s principal residence, the owner generally must file Form 2602, Request to Rescind Principal Residence Exemption, with the local assessor within 90 days.
If the owner dies, the personal representative of the estate or the trustee of the trust should generally rescind the PRE within 90 days of death, unless another eligible owner is occupying and claiming the home under the rules.
After a divorce, the spouse who no longer owns and occupies the property as their principal residence must rescind their claim. The spouse who remains in the home should confirm with the assessor that the PRE record is correct.
Failing to rescind can lead to additional tax, interest, and penalties. Michigan guidance also describes a $5 per day penalty, up to $200, for failing to timely rescind after the 90-day period.
If you bought a new Michigan home but the old home is still for sale
Michigan has a PRE-specific option called a conditional rescission. This can matter when you establish a new Michigan principal residence but the former principal residence has not sold yet.
Under Michigan’s conditional rescission rules, an owner may be able to keep the PRE on the old property for up to three consecutive tax years while also receiving the PRE on the new Michigan principal residence. The old property must have been previously exempt as that owner’s principal residence. It must be for sale, not occupied, not leased, and not used for business or commercial purposes.
To request this, the owner files Form 4640, Conditional Rescission of Principal Residence Exemption, with the assessor. The initial filing is due on or before June 1 for the summer levy or November 1 for the winter levy. The owner must also verify eligibility each later year by filing the form by December 31.
Conditional rescission is narrow. If the old home is leased, occupied, not for sale, used for business, or the yearly verification is missed, the PRE can be denied. The Board of Review cannot fix a missed conditional rescission deadline.
Special PRE situations for military service, illness, and damage
Michigan has some PRE rules for owners who are temporarily absent but still meet intent-to-return requirements.
An active duty military owner may be able to retain an existing PRE while the principal residence is rented or leased during active duty. Michigan uses Form 4660, PRE Active Duty Military Affidavit, and the form must be filed with the local assessor on or before May 1 of the first year of the claim.
Michigan guidance also discusses situations where an owner is in a nursing home, assisted living, or convalescing away from home. The PRE may continue if the owner keeps owning the property, has not established a new principal residence, maintains the property, does not lease it, does not use it for business or commercial purposes, and has the required intent to return. These cases are fact-specific.
If a principal residence is damaged or destroyed by accident, act of God, or another person without the owner’s consent, Michigan has limited intent-to-return rules. Ask the assessor what proof is needed before assuming the PRE will remain.
If your Michigan PRE is denied or audited
Read the denial notice carefully. The next step depends on who issued the denial.
| Who denied the PRE? | Where the appeal usually starts |
|---|---|
| Local assessor or county | Michigan Tax Tribunal |
| Michigan Department of Treasury | Written request for an informal conference with Treasury |
Michigan’s PRE denial and appeals guidance says a Treasury denial may be appealed by requesting an informal conference in writing within 35 days of receiving the denial notice. A denial by an assessor or county, or a final Treasury decision, is generally appealed to the Michigan Tax Tribunal’s Residential and Small Claims Division within 35 days.
Do not wait to gather every possible document before checking the deadline. You can lose appeal rights by missing the time limit. Save the envelope, notice date, denial form, tax bill, and every document showing ownership and occupancy for the denied years.
If the PRE was missing because of an official error
For current and recent years, start with the assessor and Form 2368. For older years beyond the assessor’s authority, Michigan has a separate qualified-error process in limited cases.
The owner may submit Form 5101, Owner’s Request for a Qualified Error Principal Residence Exemption, to Michigan Treasury if the missing PRE resulted from a qualified error by the local tax collecting unit. Treasury requires proof of ownership, occupancy, no disqualifying factors, and evidence that the missing exemption was due to a qualified error rather than the owner’s failure to meet requirements.
This is not a general late-filing shortcut. It is for specific error situations.
Practical checklist before you file or call
- Find your latest tax bill or assessment notice.
- Write down the parcel number and local assessing unit.
- Check whether the bill shows a PRE percentage.
- Confirm the exact date you both owned and occupied the property.
- Gather proof that the home is your principal residence.
- Check whether you or your spouse claimed a similar residence exemption in another state.
- If title is in a trust, estate, land contract, life estate, or business name, ask the assessor what ownership documents are needed.
- Keep copies of every filed PRE form and every date-stamped receipt.
Who to contact
For a normal PRE claim, rescission, conditional rescission, parcel question, or proof-of-occupancy question, contact the assessor for the city or township where the property is located.
For state forms and statewide guidance, use Michigan Treasury’s Principal Residence Exemption Forms page and the official PRE Guidelines.
Be careful with paid filing offers
Michigan PRE forms are state forms, and normal filing is handled with the local assessor. Be cautious if a company suggests you must pay them to file a PRE affidavit. A homeowner can usually request the official form and file directly with the assessor.
Editorial note
This guide was prepared using official Michigan Treasury guidance, official Michigan PRE forms, and state PRE appeal information. Rules, forms, deadlines, and local procedures can change. Before filing, appealing, rescinding, or relying on a deadline, confirm your facts with the official assessor or state office responsible for your situation.