How to File a Michigan Principal Residence Exemption (PRE) Affidavit: Step-by-Step Guide

The Michigan Principal Residence Exemption (PRE) is the single most valuable tax break most Michigan homeowners get. It removes 18 mills of local school operating tax from your property bill, saving the typical Michigan homeowner $500 to $3,000 per year for as long as you own and occupy the home. The catch: it does not happen automatically. You have to file the PRE Affidavit (Form 2368) with your local assessor. This guide walks through the entire process step by step.

What the PRE Saves You

The PRE removes up to 18 mills of local school operating tax from your property bill. Mathematically: 18 / 1,000 multiplied by your Taxable Value equals the annual savings.

Examples by Taxable Value: $50,000 TV saves $900 per year; $100,000 TV saves $1,800 per year; $200,000 TV saves $3,600 per year. Over 10 years of ownership, the PRE on a typical $150,000 TV home saves $27,000 in property taxes.

Who Qualifies

You qualify if you are a Michigan resident, you own the property, AND the property is your primary residence (the place you actually live and intend to return to whenever absent). You must own AND occupy by June 1 to qualify for the current tax year.

You can only have ONE Michigan PRE at a time. If you own multiple homes (cottage, second home), only the primary residence gets the exemption. Renters do not get the PRE — only owners. Homes used as rentals or investment properties do not qualify.

Step-by-Step: How to File

Step 1: Get Form 2368

Download Form 2368 (Principal Residence Exemption Affidavit) from the Michigan Department of Treasury website (michigan.gov/taxes), or pick up a paper copy from your local assessor office or city/township hall. Some municipalities also have online filing through their websites.

Step 2: Fill Out the Form

The form is one page. You will need: property address and parcel number (from your tax bill or property record), your name as it appears on the deed, all owners on the deed, the date you took ownership and started occupying, and your signature. The form also asks if you are claiming the conditional rescission (a separate filing for sellers who have moved to a new Michigan home but still own the prior one).

Step 3: Attach Required Documentation (If Applicable)

Most filings do not require attached documents. The assessor has the deed information from county records. If your situation is unusual (recently moved, complex title, recent ownership change), include a copy of your deed and proof of residence (driver license with the address, utility bill).

Step 4: Submit to Your Local Assessor

Mail or hand-deliver the completed Form 2368 to your local assessor office. Many assessors also accept email submissions; check the local website. Some accept online filings. Get a stamped or dated receipt copy for your records.

Step 5: Wait for Confirmation

The assessor processes the form and updates your property record. The exemption typically takes effect on the next tax bill. You will see “Principal Residence Exemption” or similar language on your assessment notice and tax bill confirming the exemption is in place.

Critical Filing Deadlines

Michigan has two annual PRE filing deadlines, with different effects.

June 1 Deadline

To get the PRE on the SUMMER tax bill of the current year (issued July 1), you must file by June 1. This is the more powerful deadline because the summer bill is typically the larger of the two.

November 1 Deadline

To get the PRE on the WINTER tax bill of the current year (issued December 1), you must file by November 1. This is the secondary deadline that catches buyers who close in the summer or fall.

If you miss both deadlines for the current year, you can still file for the following year. You do NOT get retroactive PRE on past tax bills (unless you can prove the assessor made an error).

When to File After Buying a Home

File immediately after closing. Do not wait. The 45-day window for the Property Transfer Affidavit (Form 2766) and the PRE filing deadline are both running. Many Michigan home buyers file both at the same time, often handed to the assessor at the closing or by mail within a week of closing.

Many Michigan title companies will help by giving you the PRE form at closing or even submitting it for you. Confirm this with your title company. If they do not handle it, you must file yourself.

Conditional Rescission (For Selling Owners)

If you have moved to a new Michigan primary residence but still own your prior home (which is now for sale), you can file a Conditional Rescission of PRE (Form 4640). This lets you claim PRE on BOTH your new home and your previous home for up to three years while you market and sell the prior home.

Without conditional rescission, your prior home would lose the PRE the year after you move out, increasing the tax bill by the 18 mills. Conditional rescission is particularly valuable for empty nesters who downsize and need time to sell the family home.

Conditional Rescission Eligibility

You must have established a new principal residence in Michigan, the previous home must not be occupied, leased, or used commercially, the previous home must be on the market for sale, and you can claim it for a maximum of three years.

Rescission (For Departing Owners)

When you sell or move out of a Michigan home, you must rescind the PRE within 90 days using Form 2602 (Request to Rescind Homeowner Principal Residence Exemption). Failure to rescind can result in additional taxes, interest, and penalties.

Most owners forget this step. The buyer files their own PRE, but YOU need to formally rescind yours. The county may eventually catch the discrepancy and assess back taxes plus penalties.

What If My PRE Was Denied?

If the assessor denies your PRE claim, you have the right to appeal. The appeal goes to the local Board of Review (March, July, or December meeting). Bring documentation of ownership and primary residence status. If the Board denies, you can escalate to the Michigan Department of Treasury Hearings Division.

Common PRE Mistakes

Not filing at all (the most common mistake — costs thousands per year)
Filing late (June 1 and November 1 deadlines are firm)
Forgetting to rescind PRE when you sell or move
Trying to claim PRE on a rental or investment property
Trying to claim PRE on multiple homes (only primary residence qualifies)
Not knowing about the conditional rescission for sellers with two homes
Failing to file after a refinance or Title change (the assessor may need to confirm continued occupancy)
Confusing PRE with the Homestead Property Tax Credit (different programs)

PRE Audit Notices

Michigan assessors sometimes audit PRE claims. You may receive a Request for Information letter asking you to verify continued primary residence. Respond promptly with the requested documentation (driver license, utility bills, voter registration showing the address). Failure to respond can result in PRE being revoked and back taxes assessed.

Need Help With Your Property Tax Situation?

Whether you need help filing PRE, are dealing with delinquent taxes, or are weighing whether to sell, we can help. Call (810) 547-1135 for a no-obligation conversation about your Michigan property situation.