Principal Residence Exemption (Homestead Exemption)
The Homeowner’s Principal Residence Exemption, formerly known as the Homestead Exemption, is an exemption for a homestead or primary residence from the tax levied by a local school district for school operating purposes. This is usually an 18-mill reduction in calculated taxes. This means that a homeowner is usually going to pay $18.00 less per $1,000 of taxable value on a principal residence than if it was a cottage or second home.
To qualify for the current year’s homestead exemption, a person must own and occupy a residence by May 1st. The Michigan Department of Treasury uses a number of criteria to determine a person’s principal residence. These criteria include the address where you are registered to vote, the address on your driver’s license, where your children attend school, and the address from which you file your income tax returns. If you move or change the use of your property (for example, if you convert your home to a rental unit or you have moved and have not yet sold your former primary residence) you will need to file a Principal Residence Exemption Rescission. Please call the Assessing Department if you have any questions regarding your homestead status.