Homestead exemption
Have you filed your homestead exemption?
Own and live in a home in Ann Arbor or Washtenaw County? Michigan's homestead exemption can lower your property taxes, but only if you file. Here's how.
Ann Arbor and Washtenaw County, Michigan
If you own and live in a home in Ann Arbor or anywhere in Washtenaw County, you may qualify for Michigan's homestead exemption. Its official name is the Principal Residence Exemption, or PRE.
The exemption lowers your property taxes by removing school operating taxes from your bill, which adds up to real savings every year. The catch is that it is not automatic. You have to file for it, and many new homeowners assume someone else already did.
This page walks through who qualifies, how and when to file, and what to do when you sell. It is general information, not tax or legal advice. Your local assessor has the final word on your property.
Ask Me About Your Homestead Exemption
What the homestead exemption is
In Michigan, the homestead exemption is called the Principal Residence Exemption. It allows qualified homeowners to reduce their property taxes by exempting their home from the school operating taxes that would otherwise be part of the bill.
Because those taxes are a meaningful part of a typical bill, filing correctly can make a noticeable difference in what you pay each year. That is also why it matters so much when it gets missed.
Who qualifies
- You must both own and live in the home. Owning it is not enough on its own.
- It applies only to your primary residence, and you can claim just one at a time.
- Rental and investment properties are not eligible.
If you are not sure whether your situation qualifies, your assessor's office can tell you, and I'm glad to help you find the right person to ask.
How and when to file
You file a Principal Residence Exemption Affidavit (Form 2368) with the assessor for the city or township where the home is located. You can get the form from your closing agent, your local assessor, or the State of Michigan at michigan.gov/PRE.
There are two filing deadlines each year: June 1 and November 1. If you miss one, it is still worth filing. The assessor may be able to grant the exemption for the current year and up to three previous years, as long as you met the requirements by the deadline in each of those years.
Around Ann Arbor, filing is handled by your city or township assessor's office, for example:
- Ann Arbor
- Pittsfield Township
- Scio Township
- Ypsilanti City and Ypsilanti Township
- Saline
- Dexter
Each one has its own process, and you may be asked for proof that you live in the home. Filing with the wrong city or township is one of the most common reasons an exemption never gets applied.
When you sell or move out
The exemption follows the person living in the home, not the house. When a home is no longer your primary residence, you file a Request to Rescind Homeowner's Principal Residence Exemption (Form 2602) with your assessor within 90 days. Missing it can bring a penalty of $5 a day, up to $200.
If you are selling and buying at the same time, it helps to handle both steps together: rescind the exemption on the home you are leaving, and file for it on the home you are moving into.
Common mistakes homeowners make
- Assuming the exemption is applied automatically after closing
- Forgetting to file after buying a home
- Filing with the wrong city or township
- Thinking the lender or title company already submitted it
- Missing the June 1 or November 1 deadline
How I can help
Not sure your homestead exemption is filed correctly? Just bought a home in Ann Arbor or Washtenaw County? I'm happy to help you:
- Check whether your exemption is on file
- Confirm whether you are eligible
- Find the right assessor's office and walk you through the filing
It takes a few minutes, and it can save you money every year you own the home.
Frequently Asked Questions
Is the homestead exemption applied automatically?
No. You have to file a Principal Residence Exemption Affidavit (Form 2368) with the assessor for the city or township where the home is located. If it is not filed, you pay higher property taxes.
Doesn't my lender or title company file it for me?
Not always. The form is often in your closing paperwork, but it is your responsibility to make sure it reaches the right assessor. Checking with your assessor's office is the surest way to know it is on file.
What are the filing deadlines?
June 1 and November 1. If you missed a deadline, file anyway. The assessor may be able to grant the exemption for the current year and up to three previous years if you qualified in each of them.
What do I do when I sell my home?
File a Request to Rescind Homeowner's Principal Residence Exemption (Form 2602) with your assessor within 90 days of the home no longer being your primary residence. Missing it can bring a penalty of $5 a day, up to $200.
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