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Working families and individuals eligible for homestead property tax credit

Working families and individuals with household resources of $50,000 or less a year may be eligible for a Homestead Property Tax Credit.
Working families and individuals eligible for Homestead Property Tax Credit
Working families and individuals eligible for Homestead Property Tax Credit(KWCH)
Published: Apr. 8, 2021 at 9:34 AM EDT
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LANSING, Mich. (WILX) - According to the Michigan Department of Treasury, working families and individuals with household resources of $50,000 or less a year may be eligible for a Homestead Property Tax Credit.

Michigan’s Homestead Property Tax Credit can help taxpayers if they are qualified homeowners or renters and meet certain requirements.

For most, 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 Revenue Services programs. “These tax credits can reduce tax owed and may provide a refund.”

For the 2019 tax year, more than 1.1 million taxpayers claimed the Homestead Property Tax Credit, totaling more than $784.8 million with an average credit of $669.

Taxpayers can claim a Homestead Property Tax Credit if ALL the following criteria 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 $60,000 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.

Unemployment compensation, including the federal exclusion, is still included in a taxpayer’s Total Household Resources. The federal American Rescue Plan Act reduced Adjusted Gross Income and state tax liabilities but did not reduce Total Household Resources.

To learn more about the Homestead Property Tax Credit and state income taxes, visit www.michigan.gov/incometax and click on “Credits and Exemptions” at the bottom of the page.

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