Homestead Property Tax for Seniors and Disabled (Circuit Breaker)





Variations in Receipt of Benefit

Benefit Varies with Income

Minimum Tax Amount Must be Paid

Benefit Type

Circuit Breaker


Tax credits for those with resources less than $3,000 there is no minimum payment required. The percent of taxes to be paid increases 1% for each $1,000 increase in resources up to $6,000. For those with resources above $6,000, the credit is based on taxes that exceed 3.5% of resources. The tax credit for eligible applicants with household resources not over $21,000 is 100%. The percent of credit is reduced by 4% for each $1,000 above $21,000. For those with household resources above $30,000, the credit is 60% of the taxes that exceed 3.5% of resources. The credit is reduced by 10% for each $1,000 above $41,000 until total household resources reach $50,000. The maximum credit is $1,200. The claimant can can claim this and the Homestead Credit up to the maximum of $1,200. Property taxes are assumed to be 20% of rent.

How is Benefit Disbursed

Credit to the income tax bill

Eligible Property Type


Characteristics of Eligible Property

Only residential properties are eligible for this program. Each claimant can only have one homestead which they must occupy.

Eligibility Criteria




Income Ceiling

Principal Residence


Description of Eligibility Criteria

Homeowners and renters who are senior citizens age 65 and older, paraplegic, hemiplegic, quadriplegic, totally and permanently disabled, deaf, or blind are eligible. Totally and permanently disabled persons are defined as such by the United States Social Security Administration. Applicant's household resources cannot exceed $50,000. Credit is calculated based on homestead value of $2,500 or less. If taxable value is greater than $2,500, the credit is based on the percentage of taxable value is to $2,500.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

State reimburses all of the local government tax loss

Description of State Funding for Tax Loss

The state provides the benefit directly to the taxpayer.

Record ID



Mich. Comp. Laws § 206.520; Mich. Comp. Laws § 206.522 (in effect for 2015)
Michigan Legislature (2015) Michigan Taxpayer's Guide (See page 12) [ Accessed on 05/26/2016]
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