Lansing, Michigan: As property values and tax bills continue to rise across the state, Michigan’s senior homeowners are set to receive unprecedented relief in 2025. The past year has seen a surge of legislative activity and local government actions designed to ease the financial burden on older Michiganders, from expanded property tax credits to county-level tax payment deferrals.
Major New Laws: Complete Property Tax Exemption for Seniors 70+
One of the headline-grabbing developments for 2025 is the introduction of Senate Bill 292, a proposed state law that could potentially change the game for thousands of older homeowners. If enacted, SB 292 will exempt Michigan residents aged 70 or older from paying any property taxes on their principal residence, effective for tax assessments after December 31, 2025.
To qualify for this sweeping exemption, seniors must:
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Be 70 years old or more as of the tax year in question,
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Own and occupy the home as their principal residence,
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File a claim with their local tax assessor, providing documentation of age and residency.
Once granted, the exemption would last as long as the homeowner continues to reside in and own their home. This initiative aims to give relief to older adults living on fixed incomes, who are often hardest hit by escalating property taxes. The state has pledged to compensate local governments for revenue losses—removing one of the biggest hurdles to such reforms in the past.
Senate Bill 292 enjoys broad support due to its simple goal: help aging Michiganders remain in their homes by ensuring property taxes do not price them out or push them into financial hardship.
Expansion of the Homestead Property Tax Credit
For those not yet 70, or not qualifying for a complete exemption, Michigan’s Homestead Property Tax Credit remains a vital tool to reduce annual property tax bills. For tax year 2025, the credit is open to:
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Senior citizens age 65 and older,
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Homeowners and renters whose taxes exceed 3.5% of their total household income,
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Those with property tax bills above the income-based threshold.
Eligible seniors can receive a credit covering up to 100% of the property tax amount over that 3.5% threshold, with credits capped at $1,200 per year for most claimants. The credit phases out as household income rises, becoming unavailable once household earnings surpass set limits (usually around $60,000). Applicants can file for this credit up to four years retroactively if they were eligible but missed previous years.
County-Level Property Tax Deferrals for Seniors
Many Michigan counties have adopted or expanded property tax deferral programs to give financially vulnerable seniors more flexibility in managing seasonal tax bills. For example, Eaton County approved a special resolution allowing seniors, disabled veterans, and qualifying residents to defer paying their 2023 property taxes until April 30, 2025—a move intended to provide “financial peace of mind and extra flexibility during tax season.”
Generally, counties may allow residents aged 65 or older, who meet strict residency and income criteria, to defer winter property tax payments (those due in December), often until May 1 of the following year without penalty or interest. To qualify, residents must typically demonstrate:
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Age 65+ or status as an unremarried surviving spouse,
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Permanent disability, blindness, or designation as a qualified veteran,
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Meeting the county’s income limits and homestead ownership criteria.
Deferrals are not outright exemptions; they delay tax payments in hopes of easing financial pressures for seniors on limited incomes or facing unexpected expenses.
Special Assessment Tax Deferrals and Local Innovations
Adding to these broad-based programs, some counties offer special assessment deferrals—targeted relief for seniors who face one-time local improvement levies for new sidewalks, sewer repairs, or other community upgrades. Relief may be available to residents aged 65 and older who have owned and occupied their homes for several years, with income ceilings applying.
Recent legislation at the state level also seeks to expand these deferral options, reflecting lawmakers’ recognition that even temporary relief makes a significant difference to seniors’ ability to age in place, particularly in areas affected by natural disasters or costly infrastructure projects.
Application and Access: How Seniors Can Claim Tax Relief
To take advantage of these relief options, Michigan seniors generally need to:
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File the appropriate claim forms with their local tax assessor or county treasurer,
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Provide proof of age, residency, homeownership, and household income,
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Reapply annually in some jurisdictions, especially for tax credits.
Local governments and the Michigan Department of Treasury encourage all eligible seniors—and even those unsure of their eligibility—to contact local officials or qualified tax professionals. Many communities also offer free or low-cost assistance to help seniors complete the paperwork correctly and on time.
Looking Ahead: A New Era of Stability for Michigan’s Aging Residents
Between the robust Homestead Property Tax Credit, expanded county deferral programs, and the groundbreaking proposed exemption for seniors 70+, Michigan is rapidly emerging as a leader in senior tax relief for 2025. These measures collectively promise to remove one of the key threats to seniors’ financial security and housing stability, ensuring older residents can stay safely rooted in their own homes for years to come.
Local advocates and policymakers have hailed these developments as proof that Michigan recognizes the value and dignity of its senior citizens. For older homeowners staring down another tax season, 2025 may deliver the best property tax news in decades.
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