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 Form 2368 with your local assessor, and timing matters: file by June 1 to catch that year's summer tax bill, or by November 1 for the winter bill. 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.
A Michigan example
On a home with a $142,500 taxable value — roughly half the state's median price — removing 18 mills of school operating tax cuts the annual bill by about $2,565.
Spread across a monthly escrow payment, that's more than $200 a month you'd otherwise be paying for missing a single form.
Common questions
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 the exemption is tied specifically to the home where you actually live and file the affidavit.
Related terms