Residential Tax Benefits

Most state and local taxes for individuals are abated in the Renaissance Zones. The tax benefits are phased out at 25% increments during the zone's final three years of existence. Property owners are still responsible for property taxes levied to pay for local bonded indebtedness, school sinking funds, and special assessments. The following state and local taxes are abated for businesses located in a Renaissance Zone:

Property Taxes

• Local Real Property Taxes - General property taxes on land and homes are nearly 100% abated.
• Personal Property - Personal property owned by individuals is 100% exempt under Michigan's property tax system. 
• 6-mill State Education Tax (SET) - The state property tax levy for schools is 100% abated. This amount is included in your local property tax bill. Click here for an example millage rate levy, including the SET, in a Renaissance Zone

Local units of government handle the property tax abatement differently. To find out how to claim the abatement for property taxes, contact the local assessor’s office for the Renaissance Zone.

State and Local Taxes

• State Personal Income Tax - The state's personal income tax rate is 4.35% in 2008 and is scheduled to decline to 3.9% by 2016. Individuals living in a Renaissance Zone are exempt from paying the state personal income tax. Click here to see Michigan's personal income tax forms.
• Local Income Tax - City personal income taxes, if applicable in the zone, are 100% abated. Click here for a list of Renaissance Zone locations that levy a personal income tax.
• Utility Users Tax – This only applies to residents or businesses in the City of Detroit. The city levies a 5% tax on utility bills. Individuals living within the Renaissance Zone are exempt from this tax.

For Renaissance Zone eligibility requirements, click here.