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Homestead Property Tax Credit available for eligible Michiganders

Be prepared for a unique tax season
Posted at 9:39 AM, Apr 08, 2021
and last updated 2021-04-08 16:03:30-04

LANSING, Mich. — Working families and individuals with household resources of $60,000 or less per year may be eligible for a Homestead Property Tax Credit, according to the Michigan Department of Treasury.

For most people, the tax credit is based on a comparison between property taxes and total household income, with homeowners paying property taxes directly and renters paying them indirectly with their rent.

“Homestead Property Tax Credits provide tax relief for Michigan’s working families and individuals,” said Deputy State Treasurer Glenn White, head of the Treasury’s Revenue Services programs. “These tax credits can reduce tax owed and may provide a refund.”

For the 2019 tax year, more than 1.1 million taxpayers claimed the Homestead Property Tax Credit, totaling more than $784.8 million with an average credit at $669.

All of the following must apply for an individual to be eligible:

  • 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, unless unoccupied farmland
  • Your total household resources are $60,000 or less.

Taxpayers who are required to file a state income tax return should claim the Homestead Property Tax Credit with their return. They may also file a Homestead Property Tax Credit claim by itself.

Unemployment compensation – including the federal exclusion – is still included in a taxpayer’s total household resources.

More information from the state can be found here.