Principal Residence (Homestead) Exemptions
The filing deadline is June 1 of the year the exemption is being claimed for a full year exemption. Click HERE to access the proper form.
I moved to a different home before the June 1 filing deadline. May I claim my new home?
Yes. If you buy a new home and move into it before the June 1 filing deadline, you may claim an exemption on the new home. New residences may be claimed by filing a PRINCIPAL RESIDENCE EXEMPTION AFFIDAVIT(FORM 2368) that is typically available at closing. If your agent does not provide you with this form, you can either pick one up at the Assessor's office at city hall or download it from the link above.
I moved into my Auburn HIlls home after June 1st, but by November 1st. Do I qualify for a Principal Residence Exemption?
PA 114 of 2012 allows those who initially own and occupy their home from June 2 through November 1 to claim a principal residence exemption for the winter taxes only for that year, as long as their Principal Residence Exemption Affidavit form is timely filed. Note: If the school operating taxes for your school district are levied on the summer tax bill only, this exemption will not benefit you until the following year.
Can I, as closing agent, be held liable to a buyer or seller if the buyer is not granted a homestead exemption because I did not provide either an update or an affidavit form, or I did not submit their form on time? Closing agents are required to provide either an affidavit or update form at closing. However, PA 415 of 1994 does not provide a legal course of action against the closing agent, by the buyer or seller, if the agent fails to provide a homestead exemption form or fails to file the form with the local tax collecting unit.
When I claim an exemption on my new residence, what happens to the exemption on the residence I sold?
The exemption on your old home remains in effect until December 31 of the year your home is sold. If you move to your new residence before your first home is sold, the exemption expires on December 31 of the year you move out. You must rescind the homestead exemption within 90 days of the date you no longer own or occupy the property as your principal residence. You may rescind your exemption on the REQUEST TO RESCIND/WITHDRAW HOMESTEAD EXEMPTION FORM (Form 2602) at closing. If your agent did not provide you with the Form 2602 stop by the Assessor's office at city hall or download it from this website.
I am moving into a new home and converting my current home to a rental property in November. Do I have to rescind the exemption on my current home?
Yes, within 90 days of moving. The exemption will remain in place until December 31 of the year the use is changed from your principal residence to a rental property. Click HERE to access the proper form.
I just moved into a new home and have my prior home up for sale. Can I keep the PRE on my prior home? Maybe. Click HERE for more information.
What happens when a lender has foreclosed on a mortgage and the home is now vacant?
The lender must rescind the homestead exemption using the REQUEST TO RESCIND/WITHDRAW HOMESTEAD EXEMPTION FORM (Form 2602). If you need a Form 2602 you can pick on up at the Assessor’s office at city hall or download it from this website.
What determines principal residence?
The test the Michigan Department of Treasury uses to determine principal residence includes such things as 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.
I own two homes in Michigan. For which home do I claim the exemption?
Claim the exemption for the home you occupy as your principal residence.
I have a home in Michigan and in another state. May I claim an exemption on my Michigan home?
You must be a Michigan resident to claim this exemption. You may claim your Michigan home only if you own it and occupy it as your principal residence. You may not have more than one principal residence.
May renters file for this exemption?
No. You must own your principal residence to claim an exemption for it.
My children own my home, but I hold a life estate. May I claim the exemption?
Yes. Complete the affidavit using your name, address, social security number, and signature. Your children should not sign the affidavit.
I am leasing my home with an option to buy. May I claim my home?
No. Leasing with an option to buy is considered a rental arrangement, so the home is ineligible. When you exercise the option to buy, you may claim an exemption.
I live in a nursing home but still maintain a home that I eventually plan on returning to. May I claim an exemption on the home I own?
Yes, unless the home is rented to another person.
I own the lot adjoining and contiguous to my home, and it has a different property identification number than the parcel on which my homestead is located. May I also claim an exemption on this property? You may claim an exemption on this property as long as the property claimed is adjoining or contiguous to your home. A road does not break contiguity. File an affidavit for each parcel.
I live in part of my home and operate a business in another part. May I claim an exemption?
Yes, but only on the portion of the property that is your home. You may claim the partial exemption even if the property is classified as commercial.
I rent a room in my home to a boarder. May I still claim an exemption?
Yes. If more than 50 percent of your home is used as your principal residence, you may claim an exemption for your entire home. If you use 50 percent or less of your home as a principal residence, a percentage of your home that you occupy will be used.
I own a duplex and I live in one of the units. My father lives in the other unit but does not pay rent. May I claim an exemption on both units?
You may claim an exemption only on the unit you occupy as your principal residence even if there is an adjoining entrance between the units.