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.
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
How much does the homestead exemption save?
It removes up to 18 mills of local school operating tax from your primary residence. On a $142,500 taxable value, that's roughly $2,565 a year — a meaningful cut spread across your monthly escrow payment.
How do I claim the Principal Residence Exemption?
File a Principal Residence Exemption affidavit with your local assessor for the home you actually live in. New buyers should confirm it's on file after closing, since an unfiled exemption means overpaying property taxes.
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