Policy Matters

Monthly legislative updates from Lansing.

February 2026: Property Tax Discussions Begin in Lansing

By Brad Ward, Esq.
Michigan Realtors® Vice President of Public Policy & Legal Affairs

This week Governor Whitmer proposed her 2026 state budget to the legislature. As part of her budget proposal Whitmer is looking to expand Michigan’s current Homestead Property Tax Credit for eligible seniors 65 and over. The budget would increase the amount of the credit for seniors up to 10% of their property tax bill. The expanded credit would apply to 355,000 seniors in Michigan at an average savings of $345 per year.

Property taxes have also been on the mind of Speaker of the House Matt Hall since announcing his interest last August on Michigan Public Television’s “Off the Record.” He has since doubled down on his desire for property tax relief, possibly through a ballot initiative, in multiple interviews and public appearances.

The Senate also has a pair of bills aimed at expanding the Homestead Property Tax Credit. Senate Bills 344-345 are a bipartisan effort between Senator Sarah Anthony and Senator Michelle Hoitenga to increase the income threshold on the current credit, increase the amount available to renters, and double the credit for joint income tax filers. 

Michigan Realtors® has been in conversations with the House, Senate, and the Governor’s office to lend input on these proposals and others. This association has supported past efforts to expand the Homestead Property Tax Credit to stabilize housing and provide a path to homeownership for renters. The Michigan Realtors® is also advocating for property tax relief to address the steep tax bills resulting from the uncapping once a property is transferred, otherwise known as the Pop-up Tax. Pop-up Tax relief would have the benefit of creating immediate housing inventory through incentives to both sell and purchase property.

With a divided legislature, or a property tax change that goes to the ballot, bipartisan cooperation will be needed to deliver for Michigan. Your state association will remain in these conversations and keep you updated as they progress.

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