Poverty Exemption Income Guidelines

March 12, 2024

The guidelines shall include but not be limited to the specific income and asset levels of the claimant and all persons residing in the residence.

To be eligible, a person shall do all of the following on an annual basis:

  • Be an owner of and occupy as a principal residence the property for which an exemption is requested.
  • File a claim with the City Assessor or Board of Review, accompanied by Federal and State Income tax returns for all persons residing in the residence, or a form 4988, if applicable.
  • Produce a valid driver’s license or other form of positive identification if requested.
  • Produce a deed, land contract, or other evidence of ownership of the property for which an exemption is requested if requested.
  • Meet the Federal poverty income guidelines as defined and determined annually by the United States Office of Management and Budget (or its successor).
  • Total household assets, except for the principal residence being claimed, essential household goods, and one motor vehicle, may not exceed one quarter (25%) of the Federal poverty guideline for the entire household.  Assets include, but are not limited to real estate, motor vehicles, recreational vehicles and equipment, time shares, certificates of deposit, savings accounts, checking accounts, stocks, bonds, life insurance, retirement funds, antiques and collectibles, etc.  Assets do not include basic essential household goods such as furniture, appliances, dishes and clothing.  The value of assets will not be reduced by the amount of any indebtedness owed on such assets, or any indebtedness otherwise owed by the applicant or members of the household.
  • File forms 5737, Application for MCL 211.7u Poverty Exemption, and 5739, Affirmation of Ownership and Occupancy to Remain Exempt by Reason of Poverty.

The Board of Review shall follow the above stated policy and Federal guidelines in granting or denying an exemption. Updated 2/13/2024

 Federal Poverty Level (FPL)

Family size 2023 income numbers  
For individuals $14,580
For a family of 2 $19,720
For a family of 3 $24,860
For a family of 4 $30,000
For a family of 5 $35,140
For a family of 6 $40,280
For a family of 7 $45,420
For a family of 8 $50,560
For a family of 9+ Add $5,140 for each extra person


Potential income and asset sources are (non-inclusive):

Income from all sources                                       Interest and Dividends

Salaries & wages before deductions                 Pensions

Net receipts from self-employment                   Supplemental Security Income

Veteran payments                                                  Net rental income

Royalties                                                                   Scholarships & grants

Unemployment compensation                           Insurance

Worker’s compensation                                       Retirement accounts

Alimony                                                                     Child support

General assistance                                                 IRA/Keogh annuities

Social Security                                                         New or reverse mortgages

Cash                                                                           Stocks and bonds

Checking & savings accounts                              Investments

Money market accounts                                       Gifts

Assets in trust accounts                                       Deferred compensation


Links to Required State of Michigan Forms:


Form 5737 – Application for MCL 211.7u Poverty Exemption 5737, Application for MCL 211.7u Poverty Exemption (michigan.gov)


Form 5739 – Affirmation of Ownership and Occupancy to Remain Exempt by Reason of Poverty  Affirmation of Ownership and Occupancy to Remain Exempt by Reason (michigan.gov)


Form 4988 – Poverty Exemption Affidavit  Form 4988, Poverty Exemption Affidavit (michigan.gov)