In Michigan, there is no age at which seniors stop paying property taxes. The obligation runs with ownership, whether you are 65, 75, or 95. What the state does offer is a stack of relief programs that can cut a senior’s effective bill by thousands of dollars a year, and in a narrow set of cases (disabled veterans and their surviving spouses) wipe it out entirely. The practical question is not when payments end, but which of these programs you qualify for and how to claim them.
The Homestead Property Tax Credit
This is the single most valuable program available to Michigan seniors, and the one most often missed. It is a refundable credit on your Michigan income tax return, which means you can receive it even if you owe no state income tax at all. The credit reimburses you for the share of your property taxes that exceeds a set percentage of your total household resources.
The basic formula compares your property taxes to 3.2 percent of total household resources, and credits the difference up to a cap. Seniors aged 65 and older get a more generous calculation at lower income levels. If your total household resources are $6,000 or less, the non-refundable percentage can drop to zero, meaning nearly all of your property taxes come back to you.1Michigan Legislature. Michigan Compiled Laws 206.522
For the 2025 tax year (filed in 2026), the maximum credit is $1,900. It begins phasing out when total household resources exceed $62,500 and disappears above $71,500, dropping 10 percent for every $1,000 over the threshold. The home’s taxable value cannot exceed $165,400 unless it includes unoccupied farmland.2State of Michigan. 2025 Homestead Property Tax Credit Information
To claim the senior version, you or your spouse must be at least 65 by December 31 of the tax year. Unremarried surviving spouses of someone who was 65 or older at death also qualify.1Michigan Legislature. Michigan Compiled Laws 206.522 One important detail: total household resources counts everyone’s income in the household, taxable and nontaxable, so Social Security, pensions, interest, and nontaxable retirement distributions all count toward the limit even though they may not appear on your federal return. If 100 percent of your household resources came from the Michigan Department of Health and Human Services, you cannot claim the credit.
You file Form MI-1040CR with your Michigan income tax return. The regular deadline is April 15, but you can file for the credit up to four years after the original due date.3Michigan Legislature. Michigan Compiled Laws 206.520 If you qualified in earlier years and never filed a Michigan return because you had no income tax to pay, several thousand dollars in back credits may still be recoverable. Seniors who are blind, paraplegic, quadriplegic, deaf, totally disabled, or eligible veterans should also check Form MI-1040CR-2 and file whichever version produces the larger credit.
Summer Property Tax Deferment at Age 62
Michigan lets eligible seniors postpone paying their summer property taxes until the following February 15, with no penalty or interest. This does not forgive the tax; it shifts the due date, which can be the difference between keeping current and falling behind for someone on a fixed monthly income.4Michigan Legislature. Michigan Compiled Laws 211.51
The age threshold is 62, not 65. You qualify if you are 62 or older (or the unremarried surviving spouse of someone who was 62 or older at death) and your total household income for the prior year was $40,000 or less. People who are totally and permanently disabled, blind, or eligible veterans qualify at any age if they meet the income limit.4Michigan Legislature. Michigan Compiled Laws 211.51
To defer, file Form 471 with your city or township treasurer by September 15, or by the date the tax would otherwise become subject to a late penalty, whichever is later.5State of Michigan. Deferment of Property Taxes The deferment covers summer taxes only. Winter taxes are still due on their normal schedule.
The Poverty Exemption
For the lowest-income senior homeowners, the poverty exemption can reduce taxable value partially or fully, which cuts the bill before it is sent rather than refunding you later. You must own and occupy the property as your principal residence and meet income guidelines based on federal poverty levels. A local municipality can set higher thresholds, but not lower ones.6Michigan Legislature. Michigan Compiled Laws 211.7u
File your claim with the local Board of Review after January 1 but before the Board’s final meeting day, and include copies of your federal and state tax returns. If you were not required to file a return, an affidavit can substitute. The exemption must be renewed every year.
Disabled Veterans: The One Program That Eliminates Property Taxes
The closest Michigan law comes to letting someone stop paying property taxes is the disabled veterans exemption, which fully exempts the homestead. To qualify, the U.S. Department of Veterans Affairs must have determined that you are permanently and totally disabled from military service and entitled to benefits at the 100 percent rate, or you must have received assistance for specially adapted housing, or you must be rated individually unemployable.7Michigan Legislature. Michigan Compiled Laws 211.7b
The exemption extends to the unremarried surviving spouse of a qualifying veteran and applies to any homestead the surviving spouse owns, including a home acquired after the veteran’s death. If you believe you qualify, contact your local assessor’s office to begin the application.
Confirm Your Principal Residence Exemption First
Before chasing any senior-specific program, make sure the principal residence exemption is on your property. It removes up to 18 mills of local school operating taxes from the bill, which typically saves hundreds to thousands of dollars a year depending on taxable value.8Michigan Legislature. Michigan Compiled Laws 211.7cc It is not age-based; it applies to anyone who owns and occupies the property as a primary home.
You claim it by filing an affidavit with your local tax collecting unit by June 1 for the summer levy or November 1 for the winter levy. Once filed, it stays in place until you move or the property stops being your primary home. Homeowners who inherited a property, or who bought one and never filed the affidavit, are sometimes overpaying for years without realizing it. Forms are on the Michigan Department of Treasury site.9State of Michigan. Principal Residence Exemption
Why Long-Term Owners Already Pay Less
Michigan property taxes are based on taxable value, not full market value. Under Proposal A, adopted in 1994, your home’s taxable value can only rise each year by the lesser of 5 percent or the rate of inflation, no matter how fast market prices move.10Michigan Legislature. Michigan Constitution Article IX That cap holds for as long as you own the home. When ownership transfers, the taxable value resets to the current assessed value and the new owner’s cap starts over.
The practical result for a senior who has owned the same home for decades is a taxable value that may be far below a neighbor’s identical house. If you are thinking about downsizing, factor this in. Moving resets the cap, and the smaller house may end up carrying a higher tax bill than the one you left.
If You Fall Behind on Property Taxes
Michigan has one of the faster property tax foreclosure timelines in the country, which is a particular risk for seniors on fixed incomes. Once the process reaches its final stage, the home is gone with no right to recover it.
- Year one, March 1: Unpaid taxes from the prior year are returned to the county treasurer as delinquent. Interest begins at one-half percent per month, non-compounded.
- Year two, March 1: The property forfeits to the county treasurer. You still own the home, but the county can now pursue foreclosure if the balance remains unpaid.
- Year three, March 31: The circuit court enters a foreclosure judgment and title transfers. This is the last day to redeem by paying all back taxes, interest, and fees.
After March 31 of year three, there is no redemption right. The relief programs above exist in part to prevent this chain of events. If you are already behind, contact your county treasurer right away. Many counties offer payment plans, and the poverty exemption can reduce what you owe going forward.
Free Help Filing for These Credits
Several programs will prepare the forms at no cost. The IRS-sponsored Tax Counseling for the Elderly program is specifically for people aged 60 and older, with volunteers trained in pension and retirement questions.12Internal Revenue Service. Free Tax Return Preparation for Qualifying Taxpayers Volunteer Income Tax Assistance serves taxpayers earning roughly $69,000 or less. AARP Foundation Tax-Aide, the country’s largest free tax prep service, focuses on taxpayers over 50 with low to moderate income and operates at thousands of sites from February through mid-April. You do not need to be an AARP member to use it.
Any of these can file Form MI-1040CR for the Homestead Property Tax Credit. It is the single most commonly missed benefit among Michigan seniors, usually because the person owes no state income tax and skips filing a Michigan return. The credit is refundable, so the money comes to you with zero tax liability, but only if the form is filed.