Michigan Principal Residence Exemption (PRE) – Save on Property Taxes Today
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What Is the Michigan PRE?
The Principal Residence Exemption (PRE) reduces property taxes for homeowners in Michigan.
It exempts your primary residence from the school operating tax.
You must own and occupy the home as your main residence.
The exemption does not apply to rental or commercial properties.
How Much Can You Save With PRE?
Michigan homeowners save up to 18 mills in property taxes with the PRE.
That means hundreds or even thousands of dollars annually.
Savings depend on your property’s taxable value and local tax rates.
It’s one of the most valuable homeowner tax benefits in Michigan.
Who Qualifies for the PRE?
You must own and occupy the property as of June 1 or November 1.
Only one home can qualify as your principal residence.
Vacation homes and investment properties are not eligible for PRE.
You must file the PRE affidavit with your local assessor’s office.
How To Apply for the PRE
Download Form 2368 from the Michigan Department of Treasury website.
Submit the completed form to your city or township assessor’s office.
Keep a copy for your records in case of future audits.
The exemption remains until you sell or no longer occupy the home.
Common PRE Mistakes To Avoid
Do not claim the exemption on more than one property.
Failing to update your address can disqualify your exemption.
If you move, notify the local assessor immediately.
Review your property tax bill to confirm PRE status yearly.
PRE and Home Sales
When you sell your home, the PRE does not transfer automatically.
The new owner must file their own affidavit to claim the exemption.
If your property sits vacant, you may lose the exemption.
Always file timely to avoid back taxes and penalties.
PRE Compliance and Audits
The state periodically audits PRE claims for accuracy.
False claims may lead to retroactive tax bills and penalties.
Keep utility bills and a driver’s license showing your home address.
If audited, proof of residence helps protect your exemption.
Why PRE Still Matters in 2025
With rising property values in Michigan, tax savings are more important than ever.
PRE helps offset higher assessments from home appreciation.
Homeowners should take full advantage of this legal tax break.
It boosts affordability and makes homeownership more sustainable long-term.
Stay Updated on PRE Rules
Michigan occasionally updates PRE laws or requirements.
Check with your local assessor’s office for current rules and deadlines.
Stay informed to protect your exemption and avoid costly mistakes.
Conclusion: Claim Your Savings Today
The Michigan PRE is a powerful tool to reduce your property tax bill.
Filing is easy and provides lasting financial benefits.
Act now to secure your exemption and keep more money each year.
Visit your local assessor’s website to download the PRE form today.