Michigan Property Tax Exemptions: Complete Guide for 2026
TL;DR
Michigan offers several property tax exemptions that can save homeowners hundreds or thousands per year. The most widely available is the Principal Residence Exemption (PRE) (Exemption from 18 mills of school operating taxes. Saves $1,000-$3,000+ annually.). Additional exemptions are available for seniors, disabled homeowners, veterans, and agricultural land. Most require an application. If you have not filed, you may be leaving money on the table.
Property taxes in Michigan average 1.54% of home value, which means the typical homeowner pays about $3,234 per year on a $210,000 home. Exemptions directly reduce your taxable value or tax bill, and they apply every year once approved. Here is every exemption available in Michigan for 2026.
Summary of Michigan Property Tax Exemptions
| Exemption | Benefit |
|---|---|
| Principal Residence Exemption (PRE) | Exemption from 18 mills of school operating taxes. Saves $1,000-$3,000+ annually. |
| Poverty Exemption | Reduction or complete exemption from property taxes based on income |
| Disabled Veterans Exemption | Complete exemption from property taxes |
| Conditional Rescission of PRE | Retains PRE when owner moves but has not yet sold |
Detailed Exemption Guide
Principal Residence Exemption (PRE)
| Amount | Exemption from 18 mills of school operating taxes. Saves $1,000-$3,000+ annually. |
| Who Qualifies | Owner-occupied primary residences |
| How to Apply | File Form 2368 with your city or township assessor |
| Deadline | June 1 for the current tax year. Can file late with penalty for up to 3 prior years. |
Poverty Exemption
| Amount | Reduction or complete exemption from property taxes based on income |
| Who Qualifies | Low-income homeowners meeting locally set income guidelines |
| How to Apply | Apply through your local Board of Review with income documentation |
| Deadline | Board of Review session dates (March, July, or December) |
Disabled Veterans Exemption
| Amount | Complete exemption from property taxes |
| Who Qualifies | Veterans with 100% permanent, total service-connected disability |
| How to Apply | File with local assessor with VA documentation |
| Deadline | File anytime. Effective for the year filed. |
Conditional Rescission of PRE
| Amount | Retains PRE when owner moves but has not yet sold |
| Who Qualifies | Former residents who have moved but not yet sold the home |
| How to Apply | File Form 4640 with assessor |
| Deadline | Within 90 days of moving |
How to Maximize Your Savings
Stack Multiple Exemptions
Many of these exemptions can be combined. For example, you can claim a homestead exemption and a veteran exemption at the same time. Check each exemption's eligibility requirements, and apply for every one you qualify for.
Combine Exemptions with an Assessment Appeal
Exemptions reduce your taxable value, but if the underlying assessed value is too high, you are still overpaying. File for exemptions and appeal your assessment for maximum savings. See our Michigan property tax appeal guide for step-by-step instructions.
Do Not Miss Deadlines
Most exemptions have application deadlines. Missing the deadline means waiting another year. Mark the dates on your calendar and file early.
How PropertyTaxFight Can Help
Exemptions are just one piece of the puzzle. If your assessed value is too high, PropertyTaxFight can help you build a strong appeal case for $79. You get comparable sales data, equity analysis, and county-specific filing instructions. Combined with the right exemptions, you can significantly reduce your annual tax bill.
Frequently Asked Questions
Do I need to reapply for exemptions every year in Michigan?
It depends on the exemption. Some (like homestead exemptions) are one-time filings that auto-renew. Others (especially income-based exemptions for seniors) require annual renewal. Check the specific requirements for each exemption you claim.
Can I apply for exemptions retroactively?
Some Michigan exemptions allow retroactive applications for prior tax years. Check with your county assessor or tax office for the specific rules. In many cases, you can recover 1-2 years of missed exemptions.
What happens to my exemption if I sell my home?
Exemptions tied to owner-occupancy (like homestead exemptions) do not transfer to the buyer. The new owner must apply for their own exemptions. When you buy a new home, remember to file for exemptions at your new address.
How do I know if I am already receiving an exemption?
Check your property tax bill or assessment notice. Exemptions are usually listed as line items. You can also check with your county assessor or auditor to see which exemptions are on file for your property.
Start Saving on Your Michigan Property Taxes
File for every exemption you qualify for. It is free money that reduces your tax bill every year. Then, if your assessed value seems too high, use PropertyTaxFight to build your appeal case. The combination of exemptions and a successful appeal can save you thousands.