The homestead can't exceed one acre in a city or 160 acres in a rural area. To claim a principal residence exemption, a Michigan homeowner must file an affidavit with the local city or township tax assessor.So, a homestead exemption is a legal provision designed to protect the value in a principal dwelling place. Getting a tax exemption is not automatic, and initial applications are often due in the spring. See all exemption requirements →. If you move to your new residence before your first home is sold, the exemption expires on December 31 of the year you move out. Please fill out this field. You need an exemption if you're 30 or older and want to enroll in a "Catastrophic" health plan. Please view, download, and fill out the Property Exemption Application (PDF). Annual Listing of Exempt Personal Property and Leasehold Improvements.