Confused about homestead vs. non-homestead on your Antrim County property tax bill? You are not alone. The difference can change what you pay each year and when you need to file paperwork. In this guide, you will learn what Michigan calls the Principal Residence Exemption, who qualifies, how to file with your local assessor, and what it means for your bottom line. Let’s dive in.
Homestead vs. non-homestead in Michigan
What PRE means in practice
In Michigan, “homestead” for property tax purposes is the Principal Residence Exemption (PRE). If you own and occupy a home as your principal residence, PRE removes the portion of your property taxes that funds K–12 school operating costs. Non-homestead properties, such as vacation homes and rentals, do not receive PRE and pay the full school operating millage. You may claim PRE on only one principal residence at a time.
PRE vs. the homestead tax credit
Michigan also has a Homestead Property Tax Credit on state income tax returns. That credit is different from PRE and does not change your local property tax classification. PRE is handled by your local assessor. The homestead credit is claimed on your state income tax return if you qualify.
Who qualifies in Antrim County
Basic rule: your principal residence
To get PRE, the property must be where you live and intend to make your main home. Assessors may ask for proof of residency. Typical proof includes a Michigan driver’s license or ID with the property address, voter registration, vehicle registration, or recent utility bills.
Common non-homestead examples
Properties that usually do not qualify include second homes, seasonal lake houses, short-term rentals, and investment properties that you do not occupy as your principal residence. If your use changes from owner-occupied to rental, PRE generally ends.
How to file your PRE
Timing and deadlines
To have PRE applied for the current tax year, homeowners typically file with the local assessor by June 1. Some local processes can vary, so confirm the exact deadline with your township, city, or village assessor. Once approved, PRE stays in place until ownership or occupancy changes.
Documents to gather
- Government photo ID showing the property address
- Voter and vehicle registration tied to the address
- Recent utility bills or similar occupancy proof
- The local PRE application form from your assessing unit
Step-by-step with the local assessor
- Identify your township or city assessor where the property is located in Antrim County.
- Request the PRE application and a list of acceptable documents.
- Submit your completed application and proof of residency by the stated deadline. Keep copies.
- If denied, you may appeal to the local Board of Review. If still unresolved, you can appeal to the Michigan Tax Tribunal.
How PRE affects your tax bill
What PRE removes
PRE removes the school operating millage portion of your property tax bill. This lowers your total taxes year to year while you qualify.
What stays on your bill
PRE does not remove school debt millages, or county, city, township, library, fire authority, community college, special assessments, or other non-operating levies. Those still apply.
Simple savings example
Here is a basic way to think about potential savings. If your taxable value is $100,000 and the local school operating millage rate is 18.0 mills, the school operating tax is about $100,000 × 0.018 = $1,800. With PRE, that $1,800 school operating portion would be removed. Actual savings vary by property and millage rates.
Life changes and your PRE
Buying or selling a home
If you buy a home to live in as your primary residence, plan to file your PRE as soon as you close, ideally by June 1 for that year. The seller’s PRE ends when the property transfers. Your closing team will usually prorate taxes, but you should still file promptly with the assessor.
Renting your property or using STRs
If you stop living in the home as your principal residence and use it as a rental or frequent short-term rental, PRE typically no longer applies. Tell your assessor about changes in use to stay compliant and avoid penalties.
Inheritance, divorce, or shared households
Inheritance does not automatically grant PRE. If an heir moves in and makes the home a principal residence, they can apply. Only one principal residence can receive PRE at a time, and assessors use residency evidence to decide if there is a dispute.
Compliance, reviews, and appeals
Local assessors and Boards of Review administer PRE. They may request documents to confirm residency. If a PRE was claimed in error, assessors can remove it retroactively and bill for taxes, interest, and penalties. If you disagree with a decision, you can appeal to the local Board of Review, then the Michigan Tax Tribunal.
Quick checklist: Antrim County buyers and sellers
- Before closing (buyer)
- Ask the seller and closing agent if the property currently has PRE.
- Identify the correct township or city assessor for the address.
- After closing (buyer)
- Contact the local assessor immediately for the PRE form and deadline.
- Update your driver’s license, voter registration, and vehicle registration to the property address.
- File the PRE application with proof of residency, ideally by June 1.
- If denied
- Request a written reason for denial.
- Prepare documents and attend the Board of Review. Appeal to the Michigan Tax Tribunal if needed.
- For sellers
- Provide accurate PRE information at closing and keep copies of communications.
- Confirm with your assessor if any final notifications are needed after sale.
Ready to move forward with clarity? Whether you are buying a primary home, selling a lake house, or evaluating a second home, we can help you plan around PRE timing and tax implications during your transaction. Connect with the local guidance and service you deserve with Craig Real Estate. Schedule your free consultation.
FAQs
What is the Principal Residence Exemption in Michigan?
- PRE is a property tax exemption for your principal residence that removes the K–12 school operating portion from your tax bill.
Does PRE lower my entire Antrim County tax bill?
- No. It removes school operating millages only. Other local levies and special assessments remain.
When is the PRE filing deadline for the current year?
- The common deadline is June 1. Always confirm the exact date and process with your local township or city assessor.
Can I claim PRE on more than one property?
- No. You may claim PRE on only one principal residence at a time.
Do short-term rentals affect my PRE status?
- Yes. If the property’s primary use is rental and not your principal residence, PRE generally does not apply.
What if my PRE application is denied by the assessor?
- You can appeal to the local Board of Review. If still unresolved, you may appeal to the Michigan Tax Tribunal.
Does a sale or transfer change my PRE?
- Yes. PRE ends for the seller at transfer. The buyer should file promptly if they will occupy the home as a principal residence.
