Resource Center: property taxes, homestead exemptions, and municipal guides for Southeast Michigan buyers and homeowners.
Municipal Resources ยท Property TaxesThe homestead exemption can save hundreds to over a thousand dollars a year, but only if you file correctly and on time.
The Principal Residence Exemption is one of the most valuable tax benefits Michigan homeowners receive. Buyers who miss the filing window pay the higher non-homestead rate for an entire tax cycle.
The Principal Residence Exemption (PRE): often called the homestead exemption, exempts a Michigan homeowner's primary residence from up to 18 mills of school operating taxes. That is not a small number on a typical Southeast Michigan home.
To receive the PRE you must own the property, occupy it as your primary residence, and file an affidavit with your local assessor's office. Rental properties, second homes, and investment properties do not qualify.
If you are buying a home you will live in, the PRE is one of the first administrative tasks after closing, not something to handle at tax time next year.
Savings depend on taxable value and school district millages. On a home with a taxable value of $175,000, 18 mills equals roughly $3,150 per year in school operating tax relief.
If the home you are buying was a rental or second home, tax records may show a non-homestead bill. Once you close and file your own PRE as an owner-occupant, the exemption applies going forward, but you must file to capture it.
Read the full tax picture in our Michigan Property Taxes Guide and Taxable Value Uncapping guide.
Most buyers should file within the first few weeks after closing, not wait until spring.
Pair this with our Moving Checklist and Utility Transfer Guide for a complete first-month plan.
The PRE exempts up to 18 mills of school operating taxes on a homeowner's primary residence. You must own, occupy, and file an affidavit with your local assessor.
As soon as possible after closing. June 1 affects the summer bill; November 1 affects the following year. Late filing forfeits a full cycle of savings.
You can file for the PRE after closing if you will owner-occupy. Uncapping at sale still applies separately from homestead status.
Three related resources, a download, and a tool, plus a clear next step back into the Hearts to Homes ecosystem.
Uncapping, millage rates, and estimating your real bill.
Tax ClusterWhy the seller's tax bill is not yours.
HomeownerFirst 30 days after closing, including PRE filing.
Free DownloadBuilder contracts and buyer prep before you visit a model home.
Interactive ToolMatch your lifestyle to the right Southeast Michigan community.
Not sure where to start? Visit the Resource Center, take the Find Your Fit Quiz, or ask us a question.
We walk every Hearts to Homes buyer through PRE filing timelines before and after closing. A twenty-minute conversation can prevent a full year of overpaying.