Michigan Homestead Credit - Renters

Rent Eligible for Credit

You must be under a lease or rental contract to claim rent for credit. In most cases, 23 percent of rent paid is considered property tax that can be claimed for credit. The following are exceptions:

1. If you rent or lease housing subject to a service charge or fees paid instead of property taxes, you may claim a credit based upon 10 percent of the gross rent you paid. Enter this amount on line 55 and 10 percent of rent paid on line 56, and follow instructions.
2. If your housing is exempt from property tax and no service fee is paid, you are not eligible for a credit. This includes university- or college-owned housing.
3. If your housing costs are subsidized, base your claim on the amount you pay. Do not include the federal subsidy amount.
4. If you are a mobile home park resident, claim the $3 per month specific tax on line 10, and the balance of rent paid on line 11.
5. If you are a cooperative housing corporation resident member, claim your share of the property taxes on the building. If you live in a cooperative where residents pay rent on the land under the building, you may also claim 23 percent of that land rent. NOTE: Do not take 23 percent of your total monthly payment.
6. If you are a resident of a special housing facility (not noted above), base your claim on rent only. Do not include other services. If you pay rent with other services and you are unable to determine the portion that constitutes rent only, you may determine your portion of the property taxes that can be claimed for credit based on square footage, or, divide the taxes by the number of residents for whom the home is licensed to care. This information may be obtained from your housing facility. Visit www.michigan.gov/iit for more information about claimants living in special housing facilities.