Michigan programs
Homestead exemption
A Michigan property-tax reduction (the Principal Residence Exemption) that exempts your primary home from the local school operating millage, lowering the annual tax bill.
What does homestead exemption mean?
Michigan's Principal Residence Exemption — commonly called the homestead exemption — removes up to 18 mills of local school operating tax from your primary residence, a meaningful cut to the annual property-tax bill. You claim it by filing an affidavit with your local assessor, and it applies only to the home you actually live in, not a rental or second home. New buyers should confirm the exemption is on file after closing; missing it means overpaying property taxes, which also inflates the escrow portion of your monthly payment.
Common questions
How much does the homestead exemption save?
It removes up to 18 mills of local school operating tax from your primary residence, a meaningful cut to the annual Michigan property-tax bill.
How do I claim the Principal Residence Exemption?
File an affidavit with your local assessor for the home you actually live in. New buyers should confirm it's on file after closing to avoid overpaying.
Does the exemption apply to a rental or second home?
No — only to your primary residence. Rentals, vacation homes, and vacant land don't qualify, which is why it's tied to where you actually live.
Related terms