What is the "Homestead Exemption" in Michigan?

The Homestead Exemption in Michigan is specifically designed to provide a property tax reduction for homeowners who occupy their main residence. This exemption is aimed at reducing the tax burden on individuals who own and live in their homes, thereby supporting homeownership and making housing more affordable for residents.

When a homeowner applies for the Homestead Exemption, they may receive a reduction in their taxable value, which effectively lowers the amount of property tax they need to pay. This exemption is beneficial for homeowners as it directly impacts their financial obligations regarding property taxes, allowing them to allocate funds to other important needs or investments.

The other options presented do not accurately describe the Homestead Exemption. It is not a tax reduction for investors, nor is it a rebate specifically for low-income families, nor does it pertain to vacant properties. Instead, it focuses solely on primary residences occupied by homeowners, making it a vital benefit for those in the state who meet the criteria.