Michigan Program Overview

To qualify for the Michigan Homestead Property Tax Credit (1040CR):

• Total household resources cannot be more than $71,500. If you are filing a part-year credit (for a deceased taxpayer or a part-year resident), you must annualize the total household resources to determine if the credit reduction applies. If 100% of your total household resources were received from the Michigan Department of Health and Human Services, you do not qualify.
• You owned and occupied a Michigan homestead for at least 6 months during the year on which property taxes and/or service fees were levied.
• If you own your home, the taxable value was $165,400 or less (unless unoccupied farmland). Taxable value is found on your property tax statement sent to you by your county, city, township or village office. Do not use the State Equalized Value or Assessed Value.
• Your homestead can be a mobile home on a lot in a mobile home park.
• Cottages, second homes, property you own and rent/lease to others, and college dormitories do not qualify as a homestead.

Active Military, Veterans, Surviving Spouse of a Veteran or Blind Homeowners

• If you are in the active military, are an eligible veteran, or an eligible veteran’s surviving spouse, complete form MI-1040CR-2. If you are blind and own a homestead, complete form MI-1040CR. Use the form that gives you a larger credit.

Deceased Claimant

• The estate of the taxpayer who died in 2026 (or 2026 before filing a claim) may be entitled to a credit for 2025.
• The surviving spouse, other authorized claimant or personal representative can claim this credit.
• The surviving spouse is considered married for the year in which the deceased spouse dies and may file a joint credit for that year.

Nursing Home, Foster Care Home, Home for the Aged

• Permanent occupants of a nursing home, foster care home, or home for the aged that is subject to property taxes may use the allocated share of the property taxes levied on the facility as taxes eligible for credit. Nursing home managers should have this information.
• Single occupants of a nursing home, foster care home, or home for the aged who maintain an unrented homestead may claim either their homestead tax or their share of the facility’s property taxes. Both may not be claimed. Use the one that gives you the larger credit.
• Filers who maintain a homestead and their spouse lives in an adult care facility may file a joint credit claim by combining their spouse’s share of the facility’s property tax and their homestead tax.
• Credit is not allowed if your care facility charges are paid directly to the facility by a government agency.

For the Principal Residence Exemption:

• A married couple, filing income tax returns jointly, is generally entitled to no more than one principal residence exemption.

Exceptions to the rule are:

• The law allows a temporary, additional exemption for up to three years on an unoccupied homestead listed for sale.
• Homeowners with a principal residence exemption currently residing in a nursing home, assisted living facility, or other location while convalescing and members of the armed services absent on active duty may maintain the exemption so long as they continue to own and maintain the * property, they do not establish a new primary residence, and the property is not used for most commercial and business purposes.
• A homeowner who vacates their home because of damage or destruction may maintain the exemption for up to three years as long as they demonstrate an intent to move back in.

If you are not required to file an MI-1040, you may file your credit claim as soon as you know your 2025 total household resources and property taxes levied in 2025. If you file a Michigan income tax return, your credit claim should be included with your MI-1040 return and filed by April 15, 2026, to be considered timely. To avoid penalty and interest, if you owe tax, postmark your return no later than April 15, 2026. The filing deadline to receive a 2025 property tax credit is April 15, 2030. (You have up to four years from the date the original return was due to claim the credit).

When filing your tax return, include all taxable and nontaxable income you and your spouse received in 2025 that apply from the list below:

• W-2s and 1099s
• Business income from Federal Schedule C, C-EZ, E or F
• 1099-Rs from pensions
• 1099-INTs or 1099-DIVs
• Alimony if divorce was granted prior to 2019, and other taxable income
• Social Security, SSI and/or railroad retirement benefits, and payments to minors or dependent adults who live with you
• Child support and foster parent payments
• Unemployment compensation
• Gifts received or expenses paid on your behalf over $300
• Workers’/veterans’ disability compensation/pension benefits
• FIP and other MDHHS benefits, excluding food assistance
• Form AV-9A Certificate of Disability (if applicable)

To qualify for the Michigan Homestead Property Tax Credit (1040CR):

• Total household resources cannot be more than $71,500. If you are filing a part-year credit (for a deceased taxpayer or a part-year resident), you must annualize the total household resources to determine if the credit reduction applies. If 100% of your total household resources were received from the Michigan Department of Health and Human Services, you do not qualify.
• You owned and occupied a Michigan homestead for at least 6 months during the year on which property taxes and/or service fees were levied.
• If you own your home, the taxable value was $165,400 or less (unless unoccupied farmland). Taxable value is found on your property tax statement sent to you by your county, city, township or village office. Do not use the State Equalized Value or Assessed Value.
• Your homestead can be a mobile home on a lot in a mobile home park.
• Cottages, second homes, property you own and rent/lease to others, and college dormitories do not qualify as a homestead.

Active Military, Veterans, Surviving Spouse of a Veteran or Blind Homeowners

• If you are in the active military, are an eligible veteran, or an eligible veteran’s surviving spouse, complete form MI-1040CR-2. If you are blind and own a homestead, complete form MI-1040CR. Use the form that gives you a larger credit.

Deceased Claimant

• The estate of the taxpayer who died in 2026 (or 2026 before filing a claim) may be entitled to a credit for 2025.
• The surviving spouse, other authorized claimant or personal representative can claim this credit.
• The surviving spouse is considered married for the year in which the deceased spouse dies and may file a joint credit for that year.

Nursing Home, Foster Care Home, Home for the Aged

• Permanent occupants of a nursing home, foster care home, or home for the aged that is subject to property taxes may use the allocated share of the property taxes levied on the facility as taxes eligible for credit. Nursing home managers should have this information.
• Single occupants of a nursing home, foster care home, or home for the aged who maintain an unrented homestead may claim either their homestead tax or their share of the facility’s property taxes. Both may not be claimed. Use the one that gives you the larger credit.
• Filers who maintain a homestead and their spouse lives in an adult care facility may file a joint credit claim by combining their spouse’s share of the facility’s property tax and their homestead tax.
• Credit is not allowed if your care facility charges are paid directly to the facility by a government agency.

For the Principal Residence Exemption:

• A married couple, filing income tax returns jointly, is generally entitled to no more than one principal residence exemption.

Exceptions to the rule are:

• The law allows a temporary, additional exemption for up to three years on an unoccupied homestead listed for sale.
• Homeowners with a principal residence exemption currently residing in a nursing home, assisted living facility, or other location while convalescing and members of the armed services absent on active duty may maintain the exemption so long as they continue to own and maintain the * property, they do not establish a new primary residence, and the property is not used for most commercial and business purposes.
• A homeowner who vacates their home because of damage or destruction may maintain the exemption for up to three years as long as they demonstrate an intent to move back in.

If you are not required to file an MI-1040, you may file your credit claim as soon as you know your 2025 total household resources and property taxes levied in 2025. If you file a Michigan income tax return, your credit claim should be included with your MI-1040 return and filed by April 15, 2026, to be considered timely. To avoid penalty and interest, if you owe tax, postmark your return no later than April 15, 2026. The filing deadline to receive a 2025 property tax credit is April 15, 2030. (You have up to four years from the date the original return was due to claim the credit).

When filing your tax return, include all taxable and nontaxable income you and your spouse received in 2025 that apply from the list below:

• W-2s and 1099s
• Business income from Federal Schedule C, C-EZ, E or F
• 1099-Rs from pensions
• 1099-INTs or 1099-DIVs
• Alimony if divorce was granted prior to 2019, and other taxable income
• Social Security, SSI and/or railroad retirement benefits, and payments to minors or dependent adults who live with you
• Child support and foster parent payments
• Unemployment compensation
• Gifts received or expenses paid on your behalf over $300
• Workers’/veterans’ disability compensation/pension benefits
• FIP and other MDHHS benefits, excluding food assistance
• Form AV-9A Certificate of Disability (if applicable)

To qualify:

• Total household resources cannot be more than $71,500. If you are filing a part-year credit (for a deceased taxpayer or a part-year resident), you must annualize the total household resources to determine if the credit reduction applies. If 100% of your total household resources were received from the Michigan Department of Health and Human Services, you do not qualify.
• You were contracted to pay rent and occupied a Michigan homestead for at least 6 months during the year on which property taxes and/or service fees were levied.
• You were a Michigan resident for at least 6 months in 2025.
• Renters must be under a lease or rental contract to claim rent for credit.
• Your homestead can be a rented apartment on a lot in a mobile home park.
• Cottages, second homes, property you own and rent/lease to others, and college dormitories do not qualify as a homestead.

The following are exceptions:

• If you rent or lease housing subject to a service charge or fees paid instead of property taxes, you may claim a credit based upon 10% of the gross rent you paid.
• If your housing is exempt from property tax and no service fee is paid, you are not eligible for a credit.
• This includes university-or college-owned housing
• If your housing costs are subsidized, base your claim on the amount you pay.
• Do not include the federal subsidy amount.
• If you are a mobile home park resident, claim the $3 per month specific tax.

Renters aged 65+

• An alternative credit is available for those whose rent is more than 40% of their total household resources. A separate worksheet, Worksheet 4, in the MI-1040 booklet should be completed

Cooperative Housing Residents

• If you are a cooperative housing corporation resident member, claim your share of the property taxes on the building. If you live in a cooperative where residents pay rent on the land under the building, you may also claim 23% of the land rent. Do not take 23 percent of your total monthly payment.
• If you are a resident of a special housing facility, not noted previously, base your claim on rent only. Do not include other services.
• If you pay rent with other services and you are unable to determine the portion that constitutes rent only, you may determine your portion of the property taxes that can be claimed for credit based on square footage or divide the taxes by the number of residents for whom the house is licensed to care.

Active Military, Veterans, Surviving Spouse of a Veteran or Blind Renters

• If you are in the active military, are an eligible veteran, or an eligible veteran’s surviving spouse, complete form MI-1040CR-2. If you are blind and rent a homestead, complete form MI-1040CR. Use the form that gives you a larger credit.

Nursing Home, Foster Care Home, Home for the Aged

• Permanent occupants of a nursing home, foster care home, or home for the aged that is subject to property taxes may use the allocated share of the property taxes levied on the facility as taxes eligible for credit. Nursing home managers should have this information.
• Single occupants of a nursing home, foster care home, or home for the aged who maintain an unrented homestead may claim either their homestead tax or their share of the facility’s property taxes. Both may not be claimed. Use the one that gives you the larger credit.
• Filers who maintain a homestead and their spouse lives in an adult care facility may file a joint credit claim by combining their spouse’s share of the facility’s property tax and their homestead tax.
• Credit is not allowed if your care facility charges are paid directly to the facility by a government agency.

If you are not required to file an MI-1040, you may file your credit claim as soon as you know your 2025 total household resources and property taxes levied in 2025. If you file a Michigan income tax return, your credit claim should be included with your MI-1040 return and filed by April 15, 2026, to be considered timely. To avoid penalty and interest, if you owe tax, postmark your return no later than April 15, 2026. The filing deadline to receive a 2025 property tax credit is April 15, 2030.

A copy of all signed leases

When filing your tax return, include all taxable and nontaxable income you and your spouse received in 2025 that apply from the list below:

• W-2s and 1099s
• Business income from Federal Schedule C, C-EZ, E or F
• 1099-Rs from pensions
• 1099-INTs or 1099-DIVs
• Alimony if divorce was granted prior to 2019, and other taxable income
• Social Security, SSI and/or railroad retirement benefits, and payments to minors or dependent adults who live with you
• Child support and foster parent payments
• Unemployment compensation
• Gifts received or expenses paid on your behalf over $300
• Workers’/veterans’ disability compensation/pension benefits
• FIP and other MDHHS benefits, excluding food assistance

To qualify:

• Your homestead must be in Michigan.
• You must own a home or have a lease agreement to pay rent where you live.
• You cannot live in college- or university-operated housing (including dormitories, residence halls, or apartments).
• Your household resources must be within the income limits listed on the Home Heating Credit application.

The final date to file for the 2025 home heating credit is September 30, 2026. (Your claim must be postmarked by September 30, 2026) Filing an income tax extension does not extend the due date for the home heating credit. File early to receive priority processing.

• Social Security numbers for all household members
• Total household resources, including all taxable and non-taxable income
• Name of your heat provider
• Heating bills between 11/1/2024 and 10/31/2025
• What taxpayer paid in medical insurance or HMO premiums

To qualify, you must:

• Own and live in the home as your primary residence.
• Meet income and asset limits set by your local city or township.
• Have total household income at or below the federal poverty guideline (FPL), or within the higher income limit adopted by your local government.
• Have limited assets, not including your primary home, as defined by your township.

File a Poverty Exemption Application any time after January 1st. The final due date is the day before the last day of the Board of Review. It is recommended to file prior to December 1.

Contact your local city or township assessor for specific dates.

Required documentation includes:

• Completed Poverty Exemption application, Form 5737, which must be filed by the applicant with Form 5739, Affirmation of Ownership and Occupancy to Remain Exempt by Reason of Poverty Form 4988, Poverty Exemption Affidavit (used by applicants who are not required to file federal and state income tax returns).

If required to file a federal and state income tax return, please attach copies of returns for all persons residing in the household, including any property tax credit returns filed in the immediately preceding year or in the current year.

Your local assessor may also ask you to provide:

• Evidence of ownership, like a deed or land contract
• Proof of identity, like a driver’s license or other valid form of identification

You may qualify for Detroit’s HOPE program if you:

• Owned and lived in the home as your primary residence as of December 31, 2025.
• Have a Homestead Exemption on file with the Detroit Assessor’s Office.
• Meet the program’s household income guidelines.

The Board of Review may grant a 100%, 50%, 25%, or 10% exemption based on income and circumstances.

The last day to submit the 2026 application is the first Friday in November – November 6, 2026. Applications submitted after 4:30 p.m. (close of business) on this date will not be accepted.

Required supporting documentation for Detroit HOPE:

• Completed 2026 HOPE application (Form 5737 and Form 5739)
• Recorded proof of ownership (deed, land contract, court order, etc.)
• Current, valid photo ID with address for all household members over age 18
• Federal and state income tax returns for all adults (if filed) for the applicable year
• If not required to file taxes: Form 4988 and proof of income (W-2s, SSI/SSD, pensions, unemployment, support letters, etc.)
• Proof of income for all household members (including minors)
• Documentation of savings, checking, investment accounts, CDs, stocks, bonds, and similar financial assets
• Information about life insurance policies held by household members
• Information about motor vehicles owned by household members (make, year, etc.)
• Proof of residency for minors (report cards, transcripts, benefit statements, etc.)
• Other household financial information as requested (monthly expenses, debt), if applicable

To be eligible for the PAYS program:

• Homeowners must apply for Poverty Tax Exemption (PTE) through their local assessor’s office and have it approved.
• In Detroit, you must be granted a HOPE in order to be eligible for PAYS.

If you are eligible for the PAYS program, the Wayne County Treasurer’s Office will receive your information from your local municipality and will contact you to fill out a PAYS application.

• If deemed eligible, after notification from your local assessor’s office, you will be contacted by the Wayne County Treasurer’s Office via mail on your next steps to enroll in the PAYS payment agreement (or pay a discounted lump sum).