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Categorized | Tax Time

Families eligible for homestead property tax credit 

 

Average tax credit was $521 for 2016 tax year

Working families and individuals with a household income of $50,000 or less a year may be eligible for a Homestead Property Tax Credit, according to the Michigan Department of Treasury.

Michigan’s Homestead Property Tax Credit can help taxpayers if they are a qualified homeowner or renter and meet certain requirements. For most people, the tax credit is based on a comparison between property taxes and total household income, with homeowners paying property taxes directly and renters paying them indirectly with their rent.

“Homestead Property Tax Credits provide tax relief for Michigan’s working families and individuals,” said Deputy State Treasurer Glenn White, head of Treasury’s Tax Administration Group. “These tax credits can reduce tax owed and may provide a refund.”

During the 2016 tax year, more than 1 million taxpayers claimed the Homestead Property Tax credit, totaling more than $532 million with an average credit at $521.

Taxpayers may claim a Homestead Property Tax Credit if ALL the following apply:

  • Your homestead is in Michigan
  • You were a resident of Michigan for at least six months during the year
  • You own or are contracted to pay rent and occupy a Michigan homestead on which property taxes were levied
  • If you own your home, your taxable value is $135,000 or less (unless unoccupied farmland)
  • Your total household resources are $50,000 or less

Taxpayers who are required to file a state income tax return should claim the Homestead Property Tax Credit with their return. Taxpayers may file a Homestead Property Tax Credit claim by itself.

To learn more about the Homestead Property Tax Credit, the forms required to obtain the credit or state income taxes, go to www.michigan.gov/incometax and click on “Credits and Exemptions” at the bottom of the page. 

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