Michigan's biggest property-tax break for seniors is a refundable credit worth up to $1,900 a year, and you claim it on your state income-tax return even if you owe no tax. That credit, the Homestead Property Tax Credit, is the heart of Michigan senior property tax relief, and it covers renters too. This guide walks through the credit, a summer deferment for homeowners 62 and older, and two exemptions that lower the bill at the source.

None of these are automatic. You have to claim each one with the right form.

In This Guide

The Homestead Property Tax Credit: The Core of Michigan Senior Property Tax Relief

This is the main one. Michigan's Homestead Property Tax Credit is a refundable credit on your state income-tax return for property taxes that run high relative to your income. It is not senior-specific, but it matters most to seniors on a fixed income, where a tax bill eats a bigger share of what comes in.

You claim it on Form MI-1040CR, filed with your MI-1040 state income-tax return. Because the credit is refundable, the Michigan Department of Treasury pays it out even if your income is low enough that you owe no state tax at all. For many seniors, that means a check or direct deposit, not just a smaller bill.

Renters get it too. If you rent your Michigan home, you treat 23 percent of your rent as property tax for purposes of the credit. So a senior renting an apartment can claim the same credit as a homeowner, figured off the rent instead of a tax bill.

There are limits. You can't claim the credit if your total household resources are over $71,500, or if your home's taxable value is over $165,400. Total household resources is broader than taxable income; it includes most income coming into the household, so add it up carefully before you assume you're under the line.

One thing to clear up. Michigan once gave homeowners 65 and older a more generous version of this credit. That enhanced senior calculation was phased down by state tax reforms, so don't count on a special senior formula. The credit described here is the one that applies now, and it applies to seniors the same way it applies to anyone else who qualifies.

How the Credit Is Calculated

The credit isn't a flat amount. It's tied to how much your property tax exceeds a share of your income.

Here's the mechanic. Michigan compares your property tax (or 23 percent of rent) against a percentage of your total household resources. The credit covers a portion of the property tax that runs above that threshold. The lower your income relative to your tax, the larger the credit.

The maximum credit for 2025 is $1,900. That's the ceiling no matter how the math comes out.

The credit also phases out as income rises. Once total household resources pass $62,500, the credit is reduced by 10 percent for each $1,000 over that mark. By the time resources hit $71,500, the credit is gone entirely.

These figures are for 2025. Michigan reindexes them, so the $1,900 maximum, the $62,500 phase-out, the $71,500 cutoff, and the $165,400 taxable-value cap all shift in future years. Check the current-year amounts on your MI-1040CR instructions before you file.

A short worked example shows how the pieces fit.

The Summer Property-Tax Deferment for Seniors

This one is senior-specific, and it's about timing, not amount.

Michigan homeowners age 62 and older can defer their summer property-tax bill on a principal residence through the summer property-tax deferment. To qualify, your gross household income must be $40,000 or less. The deferment postpones the summer bill without penalty or interest until it comes due later in the year.

That's the point of it. Many Michigan communities bill property tax in two installments, and the summer bill can land before a senior's annual income has caught up. The deferment lets you hold off on that summer payment without racking up late fees while you wait.

You file Form 471 with your local treasurer, not the state. File it before the summer bill's due date. This is a postponement, so the tax still comes due. It just doesn't penalize you for paying it on the deferred schedule.

The deferment and the Homestead Property Tax Credit stack. One delays your summer bill; the other refunds part of your total property tax. A qualifying senior can use both in the same year.

The Principal Residence Exemption

The first two tools touch your income-tax return and your payment schedule. The next two lower the tax bill itself.

The Principal Residence Exemption, or PRE, exempts the home you own and occupy as your principal residence from up to 18 mills of local school operating tax. A mill is one dollar of tax per $1,000 of taxable value, so 18 mills off school operating tax is a real cut on the bill.

The PRE is not senior-specific. Every Michigan homeowner who occupies their home as a principal residence can claim it. It's worth covering here because a senior who recently bought, moved, or never filed for it may be paying school operating tax they don't owe.

You claim it on Form 2368, the Principal Residence Exemption Affidavit, filed with your local assessor. Once it's on file, it stays in effect as long as the home remains your principal residence. If you're not sure whether your home has the PRE, check your tax bill or ask your local assessor.

The Disabled-Veteran Exemption

There's a separate, much larger break for some veterans.

Under Michigan's Disabled-Veteran Exemption, a qualifying veteran who is permanently and totally disabled can receive a 100 percent property-tax exemption on their principal residence. That's the full property tax, not a partial reduction. The exemption can also extend to an unremarried surviving spouse, so check the current rules if you're a veteran's widow or widower.

This exemption runs through your local government, and the qualifying criteria are specific. If you or your spouse served and carry a permanent and total disability rating, ask your local assessor exactly what documentation you need and how to file. It's one of the most valuable property-tax breaks Michigan offers, and an eligible senior veteran shouldn't leave it unclaimed.

Michigan Senior Property Tax Relief: Four Tools at a Glance

Tool What it does Who qualifies How to claim
Homestead Property Tax Credit Refundable credit up to $1,900 for property tax (or 23% of rent) over a share of income Owners and renters under $71,500 total household resources; home taxable value under $165,400 File Form MI-1040CR with your MI-1040 return
Summer tax deferment Postpones the summer tax bill with no penalty or interest until due Homeowner 62+ on a principal residence, gross household income $40,000 or less File Form 471 with your local treasurer
Principal Residence Exemption (PRE) Exempts your home from up to 18 mills of school operating tax (not senior-specific) Any owner occupying the home as a principal residence File Form 2368 with your local assessor
Disabled-veteran exemption 100% property-tax exemption on the principal residence Permanently and totally disabled qualifying veterans (and some surviving spouses) File with your local government

How to Apply

Each tool has its own form and its own office. Match them up before you file.

  1. Homestead Property Tax Credit, Form MI-1040CR. File it with your state income-tax return for the year. If your only income is Social Security or a pension and you don't normally file a return, you can still file the MI-1040CR on its own to claim the credit.
  2. Summer deferment, Form 471. File it with your local treasurer before the summer bill's due date. This is the only one with an age rule (62+) and the $40,000 income test.
  3. Principal Residence Exemption, Form 2368. File it with your local assessor when you buy or move into a home as your principal residence. You file it once, and it carries forward.
  4. Disabled-veteran exemption. File with your local government, with documentation of a permanent and total disability rating.

A few practical notes:

  • The credit and the PRE are different things. One is a refund on your income-tax return; the other is an exemption on your property-tax bill. You can use both.
  • Total household resources is the number that controls the credit. It's broader than taxable income, so total it carefully.
  • Forms and current-year figures live on the Michigan Department of Treasury property-tax pages.

If property taxes are one piece of a larger question about affording care, our guide to paying for senior care in Michigan covers Medicaid, VA benefits, and private-pay options alongside home equity.

Not sure which forms apply to your situation? Chat with Brevy's care navigator to sort out your options.

Frequently Asked Questions

Can I claim the Homestead Property Tax Credit if I owe no state income tax?

Yes. The credit is refundable, so Michigan pays it out even when you owe no state income tax. If you don't normally file a return because your income is low, you can file Form MI-1040CR on its own to claim it.

Do renters get any property-tax relief in Michigan?

Yes. Renters claim the Homestead Property Tax Credit by treating 23 percent of their rent as property tax. The same income limits apply, so a senior renting an apartment can qualify the same way a homeowner does.

What income disqualifies me from the credit?

The credit is gone once your total household resources exceed $71,500. It starts phasing out above $62,500, losing 10 percent for each $1,000 over that. A home with a taxable value above $165,400 also disqualifies you. These are 2025 figures and reindex yearly.

Does Michigan freeze property taxes for seniors?

No. Michigan has no senior tax freeze. The relief comes through the refundable Homestead Property Tax Credit, the age-62 summer deferment, the Principal Residence Exemption, and the disabled-veteran exemption. An older enhanced senior version of the credit was phased out, so don't expect a special senior formula.

What's the difference between the deferment and the credit?

The deferment postpones your summer tax bill; the credit refunds part of your total property tax. The deferment has an age rule (62+) and a $40,000 income test; the credit doesn't have an age rule but caps at $71,500 in total household resources. You can use both in the same year.

Next Steps

Start with the credit. It's the largest break for most seniors, and it costs nothing to claim.

  • File Form MI-1040CR with your state return to claim the Homestead Property Tax Credit, even if you owe no tax.
  • Add up your total household resources first to confirm you're under the $71,500 limit.
  • File Form 471 with your local treasurer before the summer bill is due if you're 62 or older and under $40,000 in gross household income.
  • Check that your home has the Principal Residence Exemption on file, and ask about the disabled-veteran exemption if you or your spouse served.

If selling or borrowing against the home is on the table, weigh that against keeping the home and using these credits. Our guide on selling or renting your home for care lays out the tradeoffs.

Learn More

FinancialSenior Property Tax Relief by StateSenior property tax relief lowers what older homeowners owe through exemptions, freezes, credits, and deferrals. Learn how each works and find your state. FinancialHow to Pay for Senior Care in MichiganEvery way to pay for senior care in Michigan in 2026: Medicare, Medicaid, VA, LTC insurance, reverse mortgages, caregiver agreements, and cost benchmarks. FinancialHow to Pay for Senior CareHow to pay for senior care: what it costs nationally and how Medicaid, Medicare, VA benefits, and private pay each fit. Who qualifies, what's covered, in 2026. FinancialSelling or Renting Your Home for CareSelling or renting the home to pay for senior care: the capital-gains exclusion, what a sale does to Medicaid, rent-vs-sell, and the step-up in basis.

Find personalized help claiming Michigan senior property tax relief at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.

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Expert eldercare guidance from Brevy's team of healthcare professionals and researchers.