The Principal Residence Exemption (PRE) is one of the biggest tax savings available to Michigan homeowners. It exempts your primary home from up to 18 mills of school operating taxes — which can save you hundreds or even thousands of dollars per year.
Who Qualifies
You qualify if the property is your primary residence — the place where you live most of the year, where you are registered to vote, and where you file your Michigan income tax from. You can only claim the exemption on one property.
How to Claim It
- Fill out Form 2368 — the Principal Residence Exemption Affidavit. You can get it from the township office or download it from the Michigan Department of Treasury website.
- Submit it to the township assessor. File it with Casey Guthrie by June 1 to receive the exemption on that year's summer tax bill. If you file after June 1 but before November 1, it takes effect the following year.
- You only need to file once as long as you continue to live in the home. You do not need to reapply each year.
If You Move
When you move out of the home — whether you sell it, rent it, or simply stop living there — you must file a Rescind form (Form 2602) within 90 days. Failing to rescind when required can result in penalties, back taxes, and interest.
How Much You Save
The exemption removes up to 18 mills of school operating taxes from your bill. On a home with a taxable value of $50,000, that is roughly $900 per year in savings. The exact amount depends on your local millage rates.
Key Details
- New homeowners: File as soon as you move in. Do not assume the previous owner's exemption transfers to you — it does not.
- Rental properties do not qualify. If you rent out your home, you must rescind the exemption.
- Seasonal or vacation homes do not qualify. It must be where you actually live.
Common Mistakes
- Forgetting to file after buying a home. The exemption is not automatic. You must submit the affidavit.
- Keeping the exemption after moving out. Michigan audits these. If you are caught claiming a PRE on a property that is not your primary residence, you will owe back taxes plus penalties.
- Missing the June 1 deadline. Filing late means waiting until the next tax year for savings.