The Property Tax Credit on Its Own Form — and It Pays Renters Too
Michigan has a homestead property tax credit reserved for veterans, their surviving spouses and blind people, claimed on the MI-1040CR-2 rather than the ordinary credit form. It is REFUNDABLE, so it pays out even when you owe no tax, and it reaches RENTERS as well as owners — up to $1,900 for a renter. The credit is computed from taxes levied or rent paid, the home's taxable value and an allowance for your filing category. Watch the ceilings: total household resources above $71,500 disqualify altogether, and the computed credit is cut by 10% for each $1,000 above the phase-out point.
Verified August 27, 2026
What this benefit is
Michigan has a homestead property tax credit reserved for veterans, their surviving spouses and blind people, claimed on the MI-1040CR-2 rather than the ordinary credit form. It is REFUNDABLE, so it pays out even when you owe no tax, and it reaches RENTERS as well as owners — up to $1,900 for a renter. The credit is computed from taxes levied or rent paid, the home's taxable value and an allowance for your filing category. Watch the ceilings: total household resources above $71,500 disqualify altogether, and the computed credit is cut by 10% for each $1,000 above the phase-out point.
What it's worth: Refundable credit computed from taxes or rent; up to $1,900 for a renter
- Claimed on the MI-1040CR-2, not the ordinary MI-1040CR.
- It is REFUNDABLE: it pays out even where no Michigan tax is owed.
- RENTERS may claim, up to $1,900. Most property tax relief cannot reach a renter at all.
- The computation uses taxes levied (or rent), the home's taxable value, and an allowance set by filing category — so the amount is personal to your figures.
- Total household resources ABOVE $71,500 disqualify.
- The computed credit is reduced by 10% for each $1,000 above the phase-out point.
- Michigan residency for at least six months of the tax year is required.
- A second route covers an active member or pensioned veteran whose total household resources are $7,500 or less, with no disability requirement.
Who is entitled to it
- You are in one of the groups this credit covers.
- You have a service-connected disability.
- You live in Michigan.
- Michigan sets this credit.
Not sure whether that describes you?
Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.
How to claim it
Deadline: With the annual Michigan return- 1File the MI-1040CR-2 — using the ordinary MI-1040CR instead loses the veteran computation.
- 2If you rent, file anyway. The credit reaches renters and many assume property tax relief cannot.
- 3Have the taxable value of the home, or the rent paid for the year, and your total household resources.
- 4Check the ceilings before deciding not to claim — $71,500 is total household resources, which is a wider figure than taxable income.
- 5A surviving spouse should file in their own right. The credit does not end with the veteran.
- Form
- MI-1040CR-2
- File with
- Michigan Department of Treasury
- Documents you will need
- va benefit summary letter
- Annual
- Claimed once a year.
Sources
- authority · published policyMI-1040CR-2 booklet — homestead property tax credit for veterans and blind people
- operating · published policyMichigan Department of Treasury
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