Michigan income-tax credit

Michigan Homestead Property Tax Credit

This is a state income-tax credit for some Michigan homeowners and renters whose property tax or rent is high compared with their household resources. It is separate from PRE and uses a different form.

Return year

2025

These are the current figures for the return generally filed in 2026.

Household resources

$71,500 or less

Other eligibility rules still apply.

Homeowner Taxable Value

$165,400 or less

This limit does not apply to renters.

Maximum credit

$1,900

The actual credit depends on the current form and household facts.

A quick eligibility screen

For the 2025 claim, start by checking whether the homestead is in Michigan, you were a Michigan resident for at least six months of the year, and total household resources are within the current limit. Homeowners also check the Taxable Value limit; renters do not use that limit.

This is only the first screen. Age, disability, rent type, property taxes, household members, months in the home, and other facts can change the form or calculation.

What to gather

Homeowners: summer and winter property-tax statements, including the Taxable Value. Do not substitute SEV or the mortgage payment.
Renters: the eligible rent paid, months occupied, and the landlord or housing information required by the current instructions.
Everyone: records used to calculate total household resources, which can include income not shown in federal adjusted gross income.

PRE and this credit are different

PRE can remove up to 18 local school operating mills from an eligible main home's property-tax bill. The Homestead Property Tax Credit comes through a Michigan income-tax claim, usually Form MI-1040CR or another credit form that fits the claimant's situation. A person may need to check both programs.

Common questions

Is the Homestead Property Tax Credit the same as PRE?

No. PRE is filed with the local assessor and changes the property-tax bill. The Homestead Property Tax Credit is claimed through Michigan's income-tax system and may produce a credit or refund.

Can renters claim the credit?

Some renters qualify because Michigan treats part of eligible rent as property tax for this credit. Use the current Treasury instructions for the rental type and months occupied.

Can I file for an older year?

Michigan Treasury says the credit can be filed up to four years from the year it could have been claimed. Use the form and limits for that tax year.

Sources and review

Where this information comes from

Michigan Treasury sets the tax-year limits, forms, definitions, and filing instructions for this credit.

Data used: Michigan Treasury Homestead Property Tax Credit guidance and 2025 MI-1040CR materials
Last reviewed: July 12, 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.
2025 Homestead Property Tax Credit limits for current household-resource, taxable-value, and maximum-credit figures.

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.

Rules, rates, forms, office practices, and local facts can change. When the answer matters, confirm it with the current official source, the responsible office, or a qualified Michigan professional before acting.

Next steps

Keep the two homestead programs straight

Use the assessor program for PRE and the Treasury income-tax form for this credit.