Main-home property tax

Michigan Principal Residence Exemption (PRE)

PRE can remove up to 18 mills of local school operating tax from an eligible main home. It is not automatic after a purchase: file Form 2368 with the city or township assessor and confirm that the exemption appears on the property record.

What it does

Removes up to 18 school operating mills

Other school, county, city, township, library, debt, and special-assessment lines can remain.

What to file

Michigan Form 2368

File it with the city or township assessor where the property is located.

Summer levy

File on or before June 1

The owner must meet the PRE requirements on the relevant filing date.

Winter levy

File June 2 through November 1

A valid filing in this window can begin with that year's winter levy.

How to claim PRE

Step 1

Check that this is your principal residence

PRE is generally for a home you own and occupy as your true, fixed, permanent home. Rentals, vacation homes, and second homes usually do not qualify.

Step 2

Complete Form 2368

Use the current Principal Residence Exemption Affidavit. Read the ownership and occupancy questions carefully before signing.

Step 3

File with the local assessor

Send it to the city or township assessor, not the mortgage company or Michigan Treasury. Keep a stamped copy, receipt, or email confirmation.

Step 4

Check the property record and next bill

Look for PRE, principal residence, or homestead status. If it still shows non-homestead, contact the assessor.

Who usually qualifies

You generally need to own and occupy the home as your principal residence: the place you treat as your true, fixed, permanent home and intend to return to when away. Unusual ownership through a trust, life estate, land contract, or other arrangement deserves a check with the assessor.

PRE is different from the Michigan Homestead Property Tax Credit. PRE changes the local property-tax bill. The Homestead Credit is claimed through Michigan's income-tax system and may also be available to some renters.

If a filing date has passed

Do not assume the exemption is lost forever. File Form 2368 and contact the assessor. Current Treasury guidance allows an assessor to grant a qualifying claim for the current and previous three calendar years if the owner met the PRE requirements on the relevant June 1 or November 1 date.

After you move out

When the property is no longer your principal residence, file Form 2602 with the assessor within 90 days. Treasury lists a $5-per-day penalty, up to $200, for failing to rescind, in addition to possible back taxes and interest if the exemption is denied.

If the old home is still for sale after you move, ask about Form 4640 before assuming PRE must end immediately. Conditional rescission has strict vacancy, listing, rental, business-use, and annual filing rules.

Common questions

Is PRE automatic when I buy a house?

No. The owner claims PRE by filing Form 2368 with the city or township assessor. A closing agent may provide or help send the form, but the owner should confirm that the assessor received it.

What if I missed June 1 or November 1?

File Form 2368 with the assessor and explain the dates you owned and occupied the home. Treasury guidance says an assessor may grant a qualifying late claim for the current and previous three calendar years when the owner met the requirements on the relevant June 1 or November 1 date.

Can I keep PRE on an old home while it is for sale?

A conditional rescission may preserve PRE for up to three years when the former home is unoccupied, for sale, not leased, and not used for business. It uses Form 4640 and must be filed on time each year. Ask the assessor before relying on it.

Does PRE stop the property-tax pop-up?

No. PRE can remove up to 18 school operating mills, but it does not prevent Taxable Value from uncapping after a transfer that triggers Michigan's reset rule.

Sources and review

Where this information comes from

PRE is controlled by Michigan Treasury guidance, current state forms, and the local assessor's parcel record.

Data used: Michigan Treasury PRE guidance and forms
Last reviewed: July 12, 2026

Michigan Treasury PRE page for official overview, statutes, audit information, and forms.
What is a Principal Residence Exemption? for who qualifies and how to claim it.
Claim requirement for filing deadlines, local assessor filing, and rescission timing.
PRE forms for Form 2368, Form 2602, Form 4640, and related forms.
Conditional rescission for rules for keeping PRE on an old home while it is for sale.

Use this carefully: PRE depends on your facts and your local assessor. Confirm unusual situations before assuming the exemption applies.

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

Put PRE in the full tax picture

PRE changes the rate. Uncapping can still change the value used to calculate the bill.