Michigan Homestead Exemption: PRE, Form 2368 and Deadlines

Michigan's homestead property tax break is called the Principal Residence Exemption (PRE). Under MCL 211.7cc, it exempts the home you own and live in from the tax your local school district levies for operating purposes, up to 18 mills, if you claim it on Form 2368 with your city or township assessor. File by June 1 to get the exemption on that year's summer and winter tax bills. Michigan also has a separate Homestead Property Tax Credit on the state income tax return. For other states, see our guide to homestead exemptions by state.

Information last verified on October 7, 2026. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers Michigan's Principal Residence Exemption (MCL 211.7cc with MCL 380.1211), the Homestead Property Tax Credit (MCL 206.520), the disabled veteran exemption (MCL 211.7b), the poverty exemption (MCL 211.7u), the summer tax deferment (MCL 211.51), the taxable value cap (MCL 211.27a) and, briefly, the creditor and bankruptcy homestead (MCL 600.5451 and 600.6023). It does not cover current inflation-adjusted credit or bankruptcy dollar figures, local millage rates, qualified agricultural or forest property, business property, or other states' laws.

What is the Michigan homestead exemption?

Michigan does not use the name "homestead exemption" for its main property tax break. The program is the Principal Residence Exemption, and the statute is direct: "A principal residence is exempt from the tax levied by a local school district for school operating purposes to the extent provided under section 1211 of the revised school code, 1976 PA 451, MCL 380.1211, if an owner of that principal residence claims an exemption as provided in this section."

Section 1211 of the Revised School Code is where the 18-mill figure comes from. It limits a school district's operating levy and lists the property exempt from those mills: "A principal residence, qualified agricultural property, qualified forest property, supportive housing property, property occupied by a public school academy, and industrial personal property are exempt from the mills levied under this subsection."

How much the PRE saves

Form 2368 sums it up: the "Principal Residence Exemption (PRE) exempts a principal residence from the tax levied by a local school district for operating purposes, up to 18 mills."

That is a large but limited break. The PRE does not wipe out your property tax. You still pay county, city or township and other levies, plus school debt millage. The dollar amount depends on your home's taxable value and your local school operating millage, so this page does not estimate it.

Michigan homestead tax programs at a glance

Who is eligible for the PRE

You must own the home and occupy it as your principal residence. The statute's definition of "owner" is broad and includes some buyers on land contract and some trust arrangements; your assessor can tell you whether your form of ownership counts. Vacation homes, seasonal homes and income property cannot be claimed.

A married couple filing jointly generally gets one PRE. Claiming a similar break in another state disqualifies you: under MCL 211.7cc, a person is not entitled to the exemption in any year in which "that person has claimed a substantially similar exemption, deduction, or credit, regardless of amount, on property in another state."

If part of the home is rented out or used for business, the exemption percentage can be reduced for that portion.

How and when to file Form 2368

The PRE is not automatic when you buy a home. You file Form 2368, the Principal Residence Exemption (PRE) Affidavit, issued by the Michigan Department of Treasury. The form's instructions say: "Mail your completed form to the township or city assessor where the property is located. ... DO NOT send this form directly to the Department of Treasury." The assessor's address "may be on your most recent tax bill or assessment notice," and your Michigan property records will show the parcel the assessor has on file.

Timing decides which bills the exemption reaches:

• On or before June 1: the PRE applies to the current summer and winter tax levies.
• After June 1 and on or before November 1: in the form's words, "A valid affidavit filed after June 1 and on or before November 1 allows an owner to receive a PRE on the current winter tax levy and subsequent tax levies so long as it remains the owner's principal residence."

Local practice on late filings can be described differently, so confirm with your assessor which levies a filing will reach. For questions, Form 2368 says to "contact your local assessor or the PRE Unit of the Michigan Department of Treasury at 517-335-7487, or visit www.michigan.gov/PRE."

Keeping the PRE, moving, and penalties

You do not refile every year. The PRE continues as long as the home remains your principal residence.

When you move out, you must tell the assessor. MCL 211.7cc requires that "not more than 90 days after exempted property is no longer used as a principal residence by the owner claiming an exemption, that owner shall rescind the claim of exemption by filing with the local tax collecting unit a rescission form prescribed by the department of treasury." The statute adds that an owner who fails to do so "is subject to a penalty of $5.00 per day for each separate failure beginning after the 90 days have elapsed, up to a maximum of $200.00."

If you have moved into a new principal residence and claimed the PRE there, you may keep the PRE on your former home for up to 3 tax years while it is not occupied, is for sale, is not leased and is not used for any business purpose, by filing a conditional rescission form with the local tax collecting unit (MCL 211.7cc(5)). You must then verify to the assessor each year, on or before December 31, that the home still meets those conditions.

An improper claim can reach back several years. Under MCL 211.7cc, "the assessor may deny a claim for exemption for the current year and for the 3 immediately preceding calendar years." A denial leads to corrected tax bills with interest at 1.25% per month and penalties, and Form 2368 states a $500 penalty for claiming a substantially similar exemption in another state.

Homestead Property Tax Credit (income tax)

The Homestead Property Tax Credit is a different program from the PRE. It is not an exemption from the tax bill; it is a credit against the Michigan income tax. Under MCL 206.520, "a claimant may claim against the tax due under this part for the tax year a credit for the property taxes on the taxpayer's homestead." Renters can claim it too, based on part of their rent.

The credit is capped and indexed. The statute sets the base: "the total credit allowed by this section and section 522 shall not exceed $1,500.00 per year. Beginning with the 2021 tax year and each tax year after 2021, the maximum amount of the credit allowed under this section and section 522 for the immediately preceding tax year shall be adjusted by the percentage increase in the United States consumer price index."

There is also a home-value test. The statute says "an owner is not eligible for a credit under this section if the taxable value of his or her homestead ... is greater than $135,000.00 through the 2021 tax year," and that limit has been adjusted since. This page does not state the current inflation-adjusted maximum credit, value limit or household income threshold, the form number, or the filing deadline, because we could not verify them on a Department of Treasury page. Check Treasury's current-year instructions before you file.

Disabled veteran exemption (MCL 211.7b)

Michigan's disabled veteran exemption is broader than the PRE. Under MCL 211.7b, "real property used and owned as a homestead by either of the following individuals is exempt from the collection of taxes under this act."

The first group is a Michigan veteran who meets one of three tests. One is that the veteran "has been determined by the United States Department of Veterans Affairs to be permanently and totally disabled as a result of military service and entitled to veterans' benefits at the 100% rate." The others are a specially adapted housing determination or an individual unemployability rating. The second group is the unremarried surviving spouse of an eligible disabled veteran.

To claim it, you "must file an application, in a form and manner prescribed by the state tax commission, showing the facts required by this section and a description of the real property with the assessing officer for the local assessing unit after January 1 and before December 31 of the calendar year for which the exemption is claimed."

Renewal recently changed. The statute now provides that "an exemption granted under this section as to taxes levied on or after January 1, 2025 remains in effect, without subsequent reapplication, until it is rescinded by the individual who was granted the exemption or is denied by the assessor."

Poverty exemption (MCL 211.7u)

Homeowners who cannot afford their taxes can ask the local board of review for help. Under MCL 211.7u, "the principal residence of a person who, in the judgment of the supervisor and board of review, by reason of poverty, is unable to contribute toward the public charges is eligible for exemption in whole or in part."

The board can grant "a full exemption equal to a 100% reduction in taxable value for the tax year in which the exemption is granted," or a partial reduction under the local policy. Because it reduces taxable value, it lowers every levy on the home, unlike the PRE.

Each local assessing unit sets its own income and asset guidelines. Those guidelines must at least let in households that "meet the federal poverty guidelines published in the prior calendar year in the Federal Register by the United States Department of Health and Human Services," or use alternative guidelines that are not less generous.

You "file a claim with the board of review on a form prescribed by the state tax commission," and the statute says "the application for an exemption under this section must be filed after January 1 but before the day prior to the last day of the board of review." The exemption is decided on an annual basis, so plan to reapply each year.

Summer tax deferment for seniors, disabled owners and veterans (MCL 211.51)

Some homeowners can push their summer tax bill back. MCL 211.51 requires the collector to "defer the collection of summer property taxes against the following property for which a deferment is claimed until the following February 15." It is a deferral, not forgiveness.

The deferment covers a principal residence of a qualifying owner whose household income was $40,000 or less (the figure "for taxes levied after December 31, 2006"). Qualifying owners include a person who "is 62 years of age or older, including the unremarried surviving spouse of a person who was 62 years of age or older at the time of death," and people who are totally and permanently disabled, blind, paraplegic or quadriplegic, along with eligible servicepersons, veterans and their widows or widowers. To claim it, file an intent to defer, on a Treasury form, with your city or township treasurer by September 15 or the date the summer tax would otherwise start to draw interest or a late penalty, whichever is later (MCL 211.51(3), (4) and (7)).

Michigan's taxable value cap and transfers

Michigan limits how fast taxable value can rise, but this is not a homestead benefit. MCL 211.27a applies to all property: taxable value is generally "the property's taxable value in the immediately preceding year minus any losses, multiplied by the lesser of 1.05 or the inflation rate, plus all additions."

The cap does not travel with you, and it does not pass to a buyer. Under MCL 211.27a, "upon a transfer of ownership of property after 1994, the property's taxable value for the calendar year following the year of the transfer is the property's state equalized valuation for the calendar year following the transfer." A new home starts a new taxable value base, and you file a new Form 2368 for it.

Michigan creditor and bankruptcy homestead (a separate law)

The PRE and the tax credit do nothing to protect a home from creditors. That protection comes from different statutes with different figures.

In bankruptcy, MCL 600.5451 lets a debtor exempt "the interest of the debtor, the codebtor, if any, and the debtor's dependents, not to exceed $30,000.00 in value or, if the debtor or a dependent of the debtor at the time of the filing of the bankruptcy petition is 65 years of age or older or disabled, not to exceed $45,000.00 in value, in a homestead." Those are the statute's base figures. The state treasurer adjusts them every three years, and "the adjusted amounts apply to cases filed on or after April 1 following the adjustment date," so the amount for a new case is higher than the printed base. This page does not state the current adjusted figure.

Against judgment creditors outside bankruptcy, MCL 600.6023 exempts a homestead of "not more than 40 acres of land and the dwelling house and appurtenances on that homestead that is not included in a recorded plat, city, or village, or, at the option of the owner, a quantity of land that consists of not more than 1 lot that is within a recorded town plat, city, or village." The same subsection caps that protection at a value of $3,500 ("not exceeding in value $3,500.00"), a figure the statute does not index, so outside bankruptcy it shields only a small amount of home equity. That exemption "does not apply to a mortgage on the homestead that is lawfully obtained."

For how these rules work in a case, see our Michigan bankruptcy guide.

When a homeowner dies, MCL 700.2402 gives a surviving spouse "a homestead allowance of $15,000.00, adjusted as provided in section 1210," which is a probate matter separate from both the tax exemption and the creditor homestead; see our Michigan probate guide.

Related

• Homestead exemptions by state
• Michigan bankruptcy
• Michigan probate
• Michigan property records

This article provides general legal information about Michigan's Principal Residence Exemption and related property tax programs under the General Property Tax Act (including MCL 211.7cc, 211.7b, 211.7u, 211.27a and 211.51) and the Income Tax Act (MCL 206.520), verified on October 7, 2026. It is not tax or legal advice. For your situation, contact your city or township assessor, the Michigan Department of Treasury, or a lawyer licensed in Michigan.

Last updated: October 7, 2026.

Frequently Asked Questions

Does Michigan have a homestead exemption?

Yes, but it is called the Principal Residence Exemption (PRE). Under MCL 211.7cc, a principal residence is exempt from the tax levied by the local school district for school operating purposes, up to 18 mills, if the owner claims it on Form 2368.

How much does the Michigan homestead exemption save?

The PRE removes the school operating tax, up to 18 mills, from your principal residence. It does not reduce county, city or township, or other levies, so the dollar saving depends on your home's taxable value and your local school operating millage.

When is the deadline to file for the Principal Residence Exemption in Michigan?

File Form 2368 with your city or township assessor on or before June 1 to get the PRE for the current summer and winter levies. An affidavit filed after June 1 and on or before November 1 gets the current winter levy and later levies, according to the form's instructions.

Do I have to reapply for the homestead exemption every year in Michigan?

No. The PRE continues each year as long as the home remains your principal residence. You must rescind it within 90 days after you stop using the home as your principal residence, or face a penalty of $5 per day up to $200 (MCL 211.7cc). If you have claimed the PRE on a new home, a conditional rescission can keep it on an unsold, unoccupied former home for up to 3 tax years.

What is the Michigan Homestead Property Tax Credit?

It is a credit against the Michigan income tax for property taxes on your homestead, under MCL 206.520, claimed for each tax year. The statutory maximum began at $1,500 per year and has been adjusted each year for inflation since the 2021 tax year; check the Department of Treasury's current figure.

Is there a property tax exemption for disabled veterans in Michigan?

Yes. Under MCL 211.7b, real property used and owned as a homestead by an eligible disabled veteran, or by the unremarried surviving spouse of one, is exempt from the collection of property taxes. For taxes levied on or after January 1, 2025, the exemption remains in effect without reapplication until rescinded or denied.

Does the Michigan homestead exemption protect my house from creditors?

No. The PRE only lowers your property tax. Protection from creditors comes from separate laws: MCL 600.5451 sets a bankruptcy homestead exemption that the state treasurer adjusts every 3 years, and MCL 600.6023 covers execution by judgment creditors, but protects only $3,500 of the home's value; under MCL 600.6027, a homestead worth more can still be sold unless the debtor pays the surplus over $3,500. Neither guarantees a home is safe from every debt, such as a mortgage.