How Long Can You Keep the Exemption on Both Homes?
Program and regulatory figures verified September 19, 2026. Details change; confirm your scenario with us.
One year and one intention, and you will see the window you are working with.
How long does your conditional rescission run?
MCL 211.7cc(5) allows the exemption on the previous home for not more than three tax years, with annual verification each December 31.
Illustration only. Your local assessor administers the exemption and processes Form 4640. This is not tax advice or a loan commitment.
What the answer means
Three tax years is the statutory maximum, not a guarantee. The exemption survives only while all four conditions hold, and you confirm that each December 31.
In practice most Michigan owners will not use the full window. Grand Rapids goes pending in a mean 22 days, Lansing 25, Detroit 32. The three years exist for difficult properties and unusual markets rather than for typical moves.
If you answered that you plan to lease
The tool says so plainly because the consequence is backdated. A tenancy beginning at any point in a tax year denies the rescission for that entire year, reaching back to the previous December 31.
What it does not do is prevent you from finding out what the property would rent for. Market rent is established from an appraisal or a Form 1007 with no tenant involved, so you can price the option and keep the exemption while you decide. See the Form 1007 page.
What it deliberately leaves out
The dollar value. What the exemption saves depends on your local millage and the property's taxable value, and we are not going to invent an average across 83 counties. Your local assessor can tell you precisely.
It also leaves out eligibility. Whether you qualify at all, and whether your filing was timely, are questions for your assessor and your tax professional.
Background on the conditional rescission page.
Exemption eligibility, conditional rescission filings and uncapping questions are legal and tax matters. Your local assessor, your CPA or a Michigan attorney own those answers. We flag them because they change the numbers we underwrite.
Frequently asked questions
How many years can I keep the Michigan exemption on my old home?
Not more than 3 tax years under MCL 211.7cc(5), provided the home remains unoccupied, for sale, unleased and not used for any business or commercial purpose, with annual verification by December 31.
What happens in year four?
The conditional rescission expires. Three tax years is the statutory maximum, so a property still unsold at that point no longer carries the exemption regardless of its condition.
Does the tool tell me what the exemption is worth?
No. The saving depends on local millage and the property's taxable value across 83 different counties, so your local assessor is the right source for a specific figure.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal, tax, or real estate advice. Principal residence exemption eligibility and conditional rescission rules depend on your facts; your local assessor, your CPA or a Michigan attorney, and your real estate agent each handle their own part. Loans are subject to borrower and property qualification.