Michigan tax credit
What is the Michigan Homestead Property Tax Credit?
The Michigan Homestead Property Tax Credit is a state income-tax credit for some homeowners and renters whose property tax or rent is high compared with their income. It is different from PRE: PRE lowers the property tax bill itself, while this credit is claimed on a Michigan tax form.
The short version
If you own or rent your main Michigan home, and your property tax or rent takes up a large share of your household resources, this credit may be worth checking. It is especially important for people on fixed incomes, but it is not only for seniors.
The form asks about your homestead, your property tax or rent, and your total household resources. Total household resources is Michigan's broad income measure for this credit. It is not always the same as the income number you think of first.
How it differs from PRE
PRE is the primary-home property tax break. You file PRE with the city or township assessor, and it can remove up to 18 school operating mills from the property tax bill.
The Homestead Property Tax Credit comes later, through the Michigan income tax system. It does not change the millage rate on the bill. Instead, you claim the credit on the state form if your situation fits the current rules.
What to check before you file
- Make sure you are using the form for the right tax year. The income and value limits can change.
- Check whether you should use MI-1040CR or a different Treasury credit form for your situation.
- Do not use your mortgage payment as the tax number. Use the actual property tax bill, or the rent amount if you are claiming as a renter.
Sources and review
Where this information comes from
This credit is controlled by Michigan Treasury forms and current-year instructions.
- Data used
- Michigan Treasury Homestead Property Tax Credit guidance and 2025 MI-1040CR materials
- Last reviewed
- June 8, 2026
- Michigan Treasury Homestead Property Tax Credit information for official overview and eligibility starting point.
- Homestead Property Tax Credit forms for MI-1040CR and related claim forms.
- Michigan Treasury total household resources for income-resource definition used for credit eligibility.
- 2025 MI-1040CR instructions for current instruction booklet and examples.
Use this carefully: The credit depends on tax year, total household resources, age, disability, rent or tax amount, and other facts. Use the current Michigan Treasury form or a tax professional before filing.
Next steps
Keep the two homestead rules straight
This credit and PRE both use the word homestead, but they work in different places.
Tax break
Understand PRE
Learn the local assessor form that lowers the property tax bill for a main home.
Read PRE guide →Calculator
Use the Michigan homebuyer tax calculator
See the buyer's first full-year property tax bill after Michigan uncapping.
Use calculator →Basics
Learn Taxable Value and mills
Review the property-tax words that show up on bills and local records.
Read basics →Michigan Porch email
Pull up a chair.
Get a short email when we publish new Michigan tools, a deadline reminder, or something worth knowing about the state. Nothing else.