Michigan Homestead Property Tax Credit eligibility is a valuable benefit designed to help homeowners and renters offset the cost of property taxes, especially when those taxes represent a significant portion of household income.
Deciding Who are eligible for Homestead Property Tax Credit in Michigan depends on several factors, including residency, income, and property type.
Key Eligibility for Homestead Property Tax Credit in Michigan
To claim the Homestead Property Tax Credit in Michigan, the following is the eligibility and all of the following must apply:
- Michigan Residency:
- Property Status Homeowners: You must own and occupy the property as your primary residence. The taxable value of the property must be $160,700 or less for 2024 (unless it is unoccupied farmland)
- Renters: You must be contracted to pay rent and occupy the dwelling for at least six months. There is no taxable value limit for renters
- .Income Limits Total Household Resources (THR): Your household income must be $69,700 or less for the 2024 tax year (check annually for updates)
- Income Exclusions: If your total household resources consist solely of payments from the Michigan Department of Health and Human Services (MDHHS), you are not eligible for the credit.
Other Restrictions:
- You can only claim one homestead at a time.
- The property cannot be a cottage, second home, or rental property you lease to others.
Special Considerations
- Seniors and Disabled:
- Veterans and Military: Active military, eligible veterans, and surviving spouses of veterans may use a special form (MI-1040CR-2) and may be eligible for additional benefits.
- Mobile Home Residents: If you live in a mobile home on a lot in a mobile home park, you are eligible as long as you meet the other requirements.
How to Apply for Homestead Exemption in Michigan?
- Form: Use Michigan Form MI-1040CR (or MI-1040CR-2 for veterans, military, and blind homeowners).
- Deadline: File with your Michigan income tax return by April 15, or as soon as you know your annual income and property taxes if you are not required to file a tax return.
- Documentation: Gather proof of residency, income statements, and property tax or rent records.
Frequently Asked Questions on Homestead Exemption in Michigan Eligibility
Can I claim the credit if I own more than one property?
No, only your principal residence qualifies.
What if I am a part-year resident?
You must annualize your total household resources to determine eligibility.
Are there any exceptions for low-income households?
Yes, additional poverty exemptions may be available at the local level.
Summary: Seniors, disabled individuals, and veterans may have access to enhanced benefits. Always check the latest guidelines and thresholds on homestead property tax credit in Michigan to ensure you receive the maximum tax relief available.