Buying a home in Detroit and want to avoid overpaying property taxes? If this will be your primary home, filing Michigan’s Principal Residence Exemption can reduce your local school operating taxes. You have clear steps and deadlines to follow, and doing it right the first time saves time and money. This guide walks you through what PRE is, who qualifies, how to file in Detroit, and how to avoid common mistakes. Let’s dive in.
What the PRE does in Michigan
The Principal Residence Exemption (PRE) reduces your property tax by exempting your principal residence from local school operating millage, generally up to 18 mills. It does not change your assessed value and is separate from the Homestead Property Tax Credit. Your home still pays the State Education Tax. You claim PRE by filing the state affidavit with your local assessor. See the state’s overview on the Michigan Department of Treasury PRE page.
Who qualifies in Detroit
You must own and occupy the property as your principal residence. You can only claim one PRE at a time, and you claim it by filing the affidavit with the local tax collecting unit. Review eligibility basics on the Michigan PRE page.
To support ownership and occupancy, keep documents such as a recorded deed or land contract, a Michigan driver’s license or state ID with your Detroit address, voter registration, and recent utility bills or statements sent to the property. Keep several different documents covering the relevant period in case of an audit.
When to file after you move
Michigan uses two key filing deadlines that affect which bill gets the exemption:
- File by June 1 to have PRE applied to the summer tax levy for that year.
- File by November 1 to have PRE applied to the winter tax levy for that year.
If you miss those dates, PRE typically begins with the next applicable levy. See the state’s timing guidance in What is a Principal Residence Exemption.
How to file your PRE in Detroit
Follow these steps after you close on your Detroit home:
- Get the state forms
- PRE Affidavit Form 2368.
- Property Transfer Affidavit (PTA) L-4260.
Download official forms from the Michigan Treasury PRE forms page and the Property Transfer Affidavit page.
Complete the forms
Fill in your legal property description, parcel number, closing date, and occupancy date. Check that names and addresses match your deed and ID.File with the City of Detroit
Submit your PRE Affidavit and PTA to the City of Detroit Office of the Assessor. Detroit accepts submissions in person at the Detroit Taxpayer Service Center, by mail, or by email. Confirm current room number, hours, and submission emails on the city’s PRE Audit and Assessor page.Meet the PTA 45-day rule
You must file the Property Transfer Affidavit within 45 days of transfer. Penalties may apply for late filing. See state instructions on the PTA instructions page.Keep proof of filing
Save date-stamped copies, email confirmations, or mailing receipts. Keep them with your closing packet.Confirm your status and bill
Verify your PRE shows on your property tax bill and on the city’s portal. Detroit’s Treasury provides balances, corrected bills, and payment options through the Pay Property Tax portal.
Filing at closing
Closing agents often prepare the PRE and PTA forms, but it is your responsibility to make sure they are filed. Confirm at the table that the forms were submitted, or take them with you and file immediately. The state reiterates this owner responsibility on the Michigan PRE page.
Special situations to know
Keeping your previous home
If you moved to Detroit but still have your prior home for sale, you may qualify for a Conditional Rescission using Form 4640 under specific conditions and time limits. Review the form and instructions on the state forms page.Moving out or selling later
When you no longer own or occupy the property as your principal residence, you must file a Request to Rescind PRE (Form 2602) with the local assessor. Find it on the state forms page.Audits and denials
The City of Detroit and the Michigan Department of Treasury both conduct PRE audits. Treasury audits typically cover the current year and the three previous years. If you receive a questionnaire or request for documents, respond by the deadline. Denials can trigger additional taxes and statutory interest, with appeal rights described in the state’s PRE audits guidance and Detroit’s PRE audit page.
Quick checklist for new Detroit homeowners
- Before or at closing
- Confirm who is filing Form 2368 and the PTA L-4260. Get copies.
- Right after move-in
- File the PRE Affidavit with Detroit’s Assessor. File the PTA within 45 days of transfer.
- Save proof of filing.
- Within your first month
- Update your Michigan driver’s license and vehicle registration to your Detroit address.
- Register to vote in Detroit. You can start at the state’s voter registration portal.
- Ongoing
- Watch for audit notices and respond on time.
- Verify your tax bill reflects PRE and contact the city if it does not.
Common mistakes to avoid
- Missing the June 1 or November 1 deadlines.
- Not filing the PTA within 45 days of transfer.
- Assuming closing filed your forms without confirming.
- Forgetting to file a rescind form when you move or sell.
- Ignoring a Detroit or Treasury PRE audit notice.
Final thoughts
Filing your PRE when you move to Detroit is straightforward if you focus on the right forms, deadlines, and proof of residency. Keep clean records, confirm filing with the Assessor, and check your tax bill. If your move involves extra complexity, like keeping a prior home, use the state’s forms and instructions to stay compliant.
Planning a move in Southeast Michigan and want an advisor who anticipates these details while guiding your purchase or sale? Connect with Five Star Luxury Realty for clear, high-touch representation.
FAQs
What is Michigan’s Principal Residence Exemption and how does it affect Detroit taxes?
- PRE exempts your principal residence from local school operating millage, generally up to 18 mills, while your home still pays the State Education Tax; see the Michigan PRE overview.
Where do I file the PRE Affidavit in Detroit?
- File with the City of Detroit Office of the Assessor, which accepts submissions in person, by mail, or by email; confirm current instructions on the city’s PRE Audit and Assessor page.
If I move in June, will PRE apply this year?
- If you occupy the property and file on or before June 1, PRE can apply to the summer levy; if you file by November 1, it typically begins with the winter levy, per the state’s timing guidance.
What documents help prove Detroit occupancy for PRE?
- Examples include a Michigan driver’s license or state ID with your Detroit address, voter registration, utility bills, bank or insurance statements, and other mail that shows your name and Detroit address for the period in question.
Do title or closing agents automatically file my PRE?
- Not always; many will prepare the forms, but you are responsible for ensuring Form 2368 and the PTA L-4260 are filed and for keeping proof of submission, as noted on the Michigan PRE page.
How can I confirm my PRE appears on my Detroit tax bill?
- Check the city’s Pay Property Tax portal for balances and corrected bills, or contact the Detroit Taxpayer Service Center listed on the city’s website.
