Michigan Senior, Veteran, and Disability Property Tax Exemptions: Complete Guide for 2026

Michigan does not have a single across-the-board senior property tax exemption, but the state offers several powerful programs that can dramatically reduce property tax for qualifying seniors, disabled veterans, and disabled homeowners. Many Michigan homeowners who qualify never apply because they do not know these programs exist. This guide walks through every major Michigan property tax relief program for seniors, veterans, and disabled homeowners, with eligibility requirements and how to apply.

Disabled Veterans: Full Exemption

Disabled veterans with a 100 percent service-connected disability rating are fully exempt from Michigan property tax on their primary residence under MCL 211.7b. This is the most powerful Michigan property tax exemption available — it eliminates the bill entirely.

Eligibility

You must be honorably discharged from the US Armed Forces, have a 100 percent service-connected disability rating from the VA OR be receiving compensation at the 100 percent rate due to individual unemployability, AND own and occupy the home as your primary residence in Michigan.

Surviving spouses of disabled veterans can continue to claim the exemption if they have not remarried and remain in the home.

How to Apply

File the State Tax Commission Disabled Veterans Exemption Affidavit (Form 5107) with your local assessor. Provide the VA disability award letter showing 100 percent rating. The exemption applies starting the year after filing. Annual renewal is not required as long as the disability rating and ownership remain unchanged.

Michigan Homestead Property Tax Credit

The Homestead Property Tax Credit is a refundable income tax credit that reimburses Michigan homeowners (and renters) for a portion of property taxes paid. It is filed on the Michigan income tax return (Form MI-1040CR), not with the local assessor.

General Eligibility

You must be a Michigan resident, own or rent your primary residence, have total household resources under the income cap (currently around $69,700 for 2024-2025, adjusted annually), and have property tax paid on the home or imputed property tax for renters.

Senior and Disabled Enhancement

Seniors (65 and over) and disabled homeowners get more generous calculation rules, often resulting in larger refunds. The maximum credit for seniors and disabled homeowners is currently around $1,700 per year (adjusted annually for inflation).

How to Apply

Complete Form MI-1040CR (Michigan Homestead Property Tax Credit Claim) with your annual Michigan income tax return. The form calculates the credit based on income, property tax paid, and household composition. The Michigan Department of Treasury issues the refund directly.

Poverty Tax Exemption (PTE)

The Poverty Tax Exemption fully or partially exempts low-income Michigan homeowners from property tax. Eligibility is determined by your local Board of Review based on household income and assets relative to local guidelines (typically tied to the federal poverty level).

Eligibility

You must own and occupy the home as your primary residence (have a Principal Residence Exemption on file), have household income below the local guideline (varies by county, typically 100 to 200 percent of federal poverty level), and have limited assets (specific limits vary).

How to Apply

Submit a Poverty Tax Exemption application (typically Form 5737) to your local assessor or Board of Review. Provide household income documentation (tax returns, Social Security statements, pension statements, pay stubs), proof of ownership, and a complete household member list.

The Board reviews applications during their March, July, or December meetings. Approval can be full (no property tax) or partial (reduced property tax). The exemption applies for one year and must be renewed annually.

Pay As You Stay (PAYS) Program

Pay As You Stay works in conjunction with the Poverty Tax Exemption. If you qualify for PTE and have delinquent property taxes, PAYS can waive interest, fees, and penalties on the back taxes AND cap the principal at 10 percent of Taxable Value. This is a separate application made through the county treasurer after the PTE is granted.

Senior Tax Deferment

Michigan offers a property tax deferment program for seniors and disabled homeowners. The deferment lets you postpone the summer property tax bill until February 14 of the following year (the same date as the winter bill due date). It does not eliminate the tax, just delays the summer payment.

Eligibility

You must be 62 or older, totally and permanently disabled, blind, an eligible serviceperson, an eligible veteran, an eligible widow or widower of an eligible veteran or serviceperson; AND your total household income must be under $40,000.

How to Apply

File the Application for Deferment of Summer Taxes (Form 471) with your local treasurer by September 14 each year (the summer tax due date).

Michigan Homeowner Assistance Fund (MIHAF)

MIHAF was created with federal pandemic relief funds to help homeowners impacted by COVID-19 with delinquent property taxes, mortgage payments, and other housing costs. As of 2026, funding is limited but still available in some cases. Maximum assistance is around $25,000 per household for property tax delinquency.

Eligibility

Household income at or below 150 percent of Area Median Income (varies by county), experienced a COVID-related financial hardship, own and occupy the home as primary residence, and be facing housing instability.

How to Apply

Apply through the Michigan State Housing Development Authority (MSHDA) MIHAF program. Online application at the MSHDA website. Approval times vary; funding may be exhausted in some periods.

Other Specific Programs

Disabled Homestead Exemption

Some Michigan localities offer additional homestead exemptions specifically for disabled non-veterans. Check with your local assessor whether your municipality offers anything beyond the statewide programs.

Heat and Utility Programs

While not property tax exemptions per se, the Michigan Home Heating Credit (filed on income tax return) and the LIHEAP energy assistance program reduce overall housing costs for low-income seniors and disabled homeowners.

Stacking Multiple Programs

Most of these programs can be combined. A senior homeowner with low income might qualify for: PRE (saves 18 mills), Homestead Property Tax Credit (refunds up to $1,700 per year), Poverty Tax Exemption (full or partial), and senior tax deferment (delays payment). Combined, these can reduce a $4,000 annual tax bill to under $500 in some cases.

A disabled veteran homeowner gets the full exemption AND can still claim the Homestead Property Tax Credit on the income tax return for additional refund.

Common Application Mistakes

• Not knowing the programs exist (the most common mistake)
• Missing application deadlines (Board of Review meets only certain months)
• Submitting incomplete documentation
• Not renewing annually for programs that require it (PTE, Senior Deferment)
• Confusing the Homestead Property Tax Credit (income tax) with the Principal Residence Exemption (property tax)
• Not applying for PAYS in conjunction with the PTE
• Assuming the PRE alone is the senior exemption (it is not)

When the Programs Are Not Enough

Some Michigan seniors find that even with all available programs, the home is no longer affordable. Carrying costs (taxes, insurance, maintenance, utilities) on a long-held family home can be hundreds of dollars per month even after exemptions. In those cases, downsizing to a smaller home or condo and unlocking the equity is often the right move. Cash buyers like Offer Now Michigan can buy your home in any condition, on a timeline that works for you, with no inspections or repairs required.

Get Help Understanding Your Options

If you are a Michigan senior, veteran, or disabled homeowner unsure which programs you qualify for or whether selling makes sense, call (810) 547-1135. We can walk you through your options without pressure to sell.

Related Reading

• The Complete Michigan Property Tax Guide
• Michigan Pay As You Stay (PAYS) Program Complete Guide
• The Complete Michigan Downsizing Guide