See if you qualify for a property tax exemption or tax credit to lower the cost of owning your home.

There aren’t many ways to reduce residential property taxes but there are few—if you qualify. See if one of the following exemptions or credits apply to your situation.

Disabled veterans and surviving spouses

Under Michigan law, disabled veterans who were discharged or honorably released from the U.S. armed forces—including the reserves—can claim an exemption from property taxes on a homestead property. Plus, un-remarried surviving spouses of a qualifying disabled veteran are allowed to retain and claim the exemption.

To request the exemption, file Form 5107 Affidavit for Disabled Veterans Exemption at your local tax assessor’s office.

Get more details on the disabled veterans exemption.

Poverty exemptions

People who experience poverty may qualify for a property tax exemption.

Poverty exemptions may relieve a homeowner of 100% of their property taxes, or just a portion. A 75%, 50% or 25% reduction may be granted. Determinations are made by local assessors after reviewing documentation of income, debt, assets, monthly expenses and the number of people living in the household.

Taxpayers who receive a poverty exemption must file an application annually to request continuation of property tax relief.

Get more details on the poverty exemption.

Homestead property tax credit

A tax credit isn’t a reduction in property taxes, but it has the same effect: it allows you to save money. Plus, renters as well as home owners may qualify for the credit if they meet all of the following State of Michigan requirements:

• You own or were contracted to pay rent and occupied a Michigan homestead for at least 6 months during the year on which property taxes and/or service fees were levied.  If you own your home, your taxable value was $154,400 or less (unless unoccupied farmland)
• Your total household resources were $67,300 or less (part-year residents must annualize total household resources to determine if a credit reduction applies)
• Your total household resources do not consist solely of payments received from the Michigan Department of Health and Human Services

The Homestead property tax credit is claimed when you file Form MI10410-CR with your state income tax. Many Michiganders, including seniors, disabled veterans and people who are blind take advantage of this credit.

Disabled veterans and blind people should complete forms MI-1040CR and the MI-1040CR-2, compare the results and file the form with the higher credit.

Get links to the forms and instructions for the homestead property tax credit.

Home heating credit

Another credit available to qualified low income households is the Home Heating Credit. Get more details, including income limits, here.

 

All loans subject to approval. Rates, terms, and conditions are subject to change and may vary based on credit worthiness, qualifications, and collateral conditions.