If you’re a homeowner in Michigan aged 70 or older, you may soon get a break that could mean thousands of dollars back in your pocket.

A newly proposed bill could eliminate property taxes for seniors across the state.

While the promise of financial relief sounds like a win for retirees on fixed incomes, the proposal is raising questions about fairness, funding, and long-term impact.

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What’s being proposed?​

On May 13, Michigan State Senator Michele Hoitenga introduced SB 292, which would eliminate property taxes for Michigan homeowners aged 70 and older.

The tax break would apply to a senior’s primary residence starting with taxes levied after December 31, 2025.

Senator Hoitenga explained the motivation:

"People across Northern Michigan are feeling the financial burden of high taxes—especially our seniors, many of whom are on a fixed income and have worked their whole lives, only to now face losing their homes due to skyrocketing property tax increases."

Who qualifies and how would it work?​

• Eligibility: Any Michigan resident aged 70 or older, regardless of income or retirement status
• Property Covered: Your main residence (not vacation or rental properties)
• Effective Date: Applies to taxes levied after December 31, 2025
• Funding: The state would reimburse local governments from Michigan’s general fund

While the bill pledges to compensate municipalities for the lost revenue, it currently lacks details on how much funding would be allocated or how reimbursement would be managed.



Also read: Is there hidden money waiting for you? How to instantly check if you have unclaimed cash

Why now?​

Property taxes have climbed sharply in recent years, partly due to the post-pandemic housing boom. For older adults on fixed incomes, these rising costs can be devastating.

In Michigan, some seniors are being forced to sell their homes simply because they can’t keep up with the tax bills.

Several other states—including Florida, Illinois, Kansas, and Pennsylvania—are also exploring property tax reform, especially for seniors.

Some, like Alabama, already exempt seniors from the state portion of property taxes, although local taxes still apply.

Potential benefits of SB 292​

• Financial Relief: Could save eligible seniors hundreds or even thousands per year
• Housing Stability: Helps prevent displacement due to unaffordable tax increases
• Simplicity: No need for means testing or applications—eligibility is age-based

For many Michigan seniors, the proposal offers welcome relief amid rising living costs and increasing health care expenses.

What Are the Concerns?​

Not everyone supports the bill. Critics and experts raise several important concerns:

• Shift in Tax Burden: Younger homeowners and families could be left to cover the gap
• No Income Limit: Wealthier seniors would benefit alongside those truly in need
• Strain on Public Services: Property taxes fund schools, police, fire departments, and infrastructure; if state reimbursements fall short, these services may suffer
• Market Effects: Seniors might be incentivized to stay in their homes longer, reducing housing availability for younger families

Christopher Berry of the University of Chicago calls the proposal "an intergenerational transfer," arguing that wealthier seniors could benefit at the expense of younger, less financially stable residents.



Also read: Will your Social Security checks get bigger? The truth behind the GOP tax bill

How does Michigan compare to other states?​

Full property tax exemptions for seniors are rare. Here’s how other states approach the issue:

• Alabama: Full exemption from the state portion of property taxes for seniors 65+
• New York, Texas, Massachusetts: Offer income-based reductions or exemptions for seniors 65+
• Washington: Provides relief starting at age 61

Michigan’s SB 292 would be one of the broadest policies of its kind, with no income test and full exemption.

What’s next?​

SB 292 is now under review by the Michigan Senate Committee on Finance, Insurance, and Consumer Protection.

To become law, it must pass the Senate and House and be signed by Governor Gretchen Whitmer.

If approved, the exemption would affect over 1 million Michigan residents aged 65+, with that number expected to grow as the population ages.

Read next: This state just passed major property tax cuts—here’s who benefits, and who’s footing the bill
Do you support SB 292? Would this help you or a loved one? Are you concerned about the impact on schools or local services? Share your thoughts in the comments below—your perspective matters.