Michigan Homestead Credit - Renters
Renters in Michigan may be eligible for the Homestead Property Tax Credit, which helps offset property tax burdens. This credit is available to individuals who rent their primary residence (homestead) and meet specific income and resource thresholds.
Eligibility for Renters
- Renters must have paid rent for their homestead during the tax year.
- They must claim their homestead as their primary residence.
- Blind renters may claim the credit on Form MI-1040CR, even if under age 65, by checking box 5b.
- Individuals who moved from one rental homestead to another during the last two years must enter the smaller of:
- The final month’s rent on the previous homestead multiplied by 12, or
- The actual rent paid during the year (from line 53 and/or line 55 on Form MI-1040).
How to Claim the Credit
- Complete Form MI-1040CR (Homestead Property Tax Credit Claim).
- Enter total rent paid on line 53 and/or line 55 of Form MI-1040, and transfer to line 5 of Form MI-1040CR.
- On Form MI-1040CR, line 8, enter your total household resources from your MI-1040CR, MI-1040CR-2, or MI-1040CR-7. For part-year or nonresidents, include entire 2025 total household resources regardless of source.
- Ensure all qualifying taxes are included in the total on line 4 before completing line 8.
Credit Phase-Out Based on Household Resources
The credit is phased out based on total household resources. The percentage allowed decreases as household resources increase:
- $62,500 or less: 100% credit allowed
- $62,501 - $63,500: 90% credit allowed
- $63,501 - $64,500: 80% credit allowed
- $64,501 - $65,500: 70% credit allowed
- $65,501 - $66,500: 60% credit allowed
- $66,501 - $67,500: 50% credit allowed
- $67,501 - $68,500: 40% credit allowed
- $68,501 - $69,500: 30% credit allowed
- $69,501 - $70,500: 20% credit allowed
- $70,501 - $71,500: 10% credit allowed
- $71,501 and above: 0% credit allowed
Important Notes
- Renters cannot use Form MI-1040CR-2 (for veterans and blind people) if they are blind and renting. Instead, they must use Form MI-1040CR and check box 5b if under age 65.
- For married couples filing separately who maintained separate homesteads, only the individual’s income is considered for the credit calculation.
Source:
MI-1040CR Homestead Property Tax Credit Claim Instructions
Form MI-1040 Instructions
Schedule CR-5 Instructions
Disclaimer: Always verify details with official Federal or State Department of Revenue Forms and Instructions.