Michigan Homestead Property Tax Credit Claim
The Michigan Homestead Property Tax Credit is designed to assist eligible homeowners with property tax relief. This credit is available to individuals who meet specific income and residency requirements. The credit amount is based on total household resources and is subject to phase-out thresholds.
Eligibility and Filing Requirements
- Must be a Michigan resident and own a primary residence (homestead).
- Must file a Michigan Individual Income Tax Return (MI-1040) if required.
- Must complete and file either Form MI-1040CR (Homestead Property Tax Credit Claim) or Form MI-1040CR-2 (for veterans and blind individuals).
- Even if not eligible for the credit, you must file the form to report total household resources.
Phase-Out Based on Household Resources
The credit is reduced (phased out) as household resources increase. The phase-out schedule for 2025 is as follows:
- $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
Required Documentation
- Completed Form MI-1040CR or MI-1040CR-2 (even if not eligible for credit).
- Copy of summer and winter property tax statements showing taxable value, millage rates, and property taxes levied.
- Include total household resources as reported on the form.
Important Notes
- Homestead Property Tax Credits are not included in Michigan total household resources.
- If you received a Farmland Preservation Tax Credit in 2025, include it in your total household resources.
- For veterans and blind individuals, use Form MI-1040CR-2 to claim the credit.
- Farmers should use Form MI-1040CR for credit calculation.
Source:
Michigan Homestead Property Tax Credit Claim for Veterans and Blind People (MI-1040CR-2)
Michigan Individual Income Tax Return (MI-1040)
Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions.