Michigan Veteran Benefits 2026: Property Tax Exemptions and Military Retired Pay Tax

The state benefits Michigan gives veterans and their surviving spouses: property tax exemptions, how the state taxes military retired pay, and other benefits, each with who qualifies, the amount, how to apply and the official source.

Michigan fully exempts the homestead of a veteran rated 100% permanently and totally disabled, rated individually unemployable, or given a VA specially adapted housing grant. The exemption continues for the surviving spouse until remarriage, and from 2025 it no longer has to be refiled every year. Military retired pay is fully deductible from Michigan income tax. Other state benefits include free resident hunting and fishing licenses for 100% P&T or IU veterans, the Children of Veterans Tuition Grant (up to $2,800 a year), veterans' preference in public employment, and three state-run Michigan Veteran Homes. (sources)

Official sources Checked against official sources on November 4, 2026. This page lists only benefits confirmed on an official state or federal page; counties and cities may offer more.

Property tax exemptions
Military retired pay tax
Other veteran benefits
Common questions

Property tax exemptions for veterans in Michigan

Michigan property tax benefits for veterans and surviving spouses (checked November 4, 2026)
Benefit	Who qualifies	Amount	How to apply	Source
Disabled Veteran Homestead Property Tax Exemption (MCL 211.7b, 'Dannie Lee Barnes disabled veteran property tax relief act')	Michigan-resident veteran, discharged under honorable conditions, who either: (i) is determined by the VA to be permanently and totally disabled from military service and entitled to benefits at the 100% rate; (ii) holds a VA certificate for specially adapted housing assistance; or (iii) is rated individually unemployable by the VA. The veteran must own and use the property as a homestead, with title held solely or jointly with a spouse. An unremarried surviving spouse of an eligible veteran also qualifies, including for a homestead acquired after the veteran's death. No income limit.	Full exemption from collection of property taxes on the homestead, prorated for a partial year of ownership	Apply to the local assessing officer after January 1 and before December 31 of the year claimed, on the form prescribed by the State Tax Commission. For taxes levied on or after January 1, 2025, a granted exemption stays in effect without reapplication until the owner rescinds it or the assessor denies it.	MCL 211.7b, General Property Tax Act (Michigan Legislature)
Homestead Property Tax Credit, veteran/serviceperson computation (MCL 206.522(1)(d) and 206.506)	An 'eligible serviceperson, eligible veteran, or eligible widow or widower' under MCL 206.506 whose income is not more than $7,500 a year. Treasury (Form 4659 FAQ) reads this as income outside VA or armed-forces compensation for service-incurred disabilities. The person must fit the statutory schedule: a veteran with a 10-100% service-connected disability or that veteran's widow(er), a pensioned veteran or widow(er), the widow(er) of a veteran who died in service, a current serviceperson or widow(er), or certain older-war veterans and widow(er)s. Available to owners and renters.	A refundable credit of a percentage of homestead property taxes, up to 100%. The percentage is the MCL 206.506 taxable-value allowance divided by the home's taxable value (renters: 23% of annual rent divided by the property tax rate). Allowances: $3,500 for 10-50% service-connected disability, $4,000 for 60-80%, $4,500 for 90-100%, $4,500 for the widow(er) of a veteran who died in service, and $3,500 for pensioned veterans and current servicepersons. The total credit is capped at the annual Homestead Property Tax Credit limit ($1,900 for tax year 2025).	Claim on Form MI-1040CR (Homestead Property Tax Credit claim) filed with the Michigan Department of Treasury; may be claimed up to four years after the original return due date.	MCL 206.506 and 206.522, Income Tax Act of 1967 (Michigan Legislature)
Deferment of summer property taxes for eligible veterans (MCL 211.51)	Owner of a principal residence whose total gross household income for the preceding calendar year was $40,000 or less and who is an eligible serviceperson, eligible veteran, or eligible widow(er). Eligibility follows the MCL 206.506 schedule, including veterans with a 10-100% service-connected disability.	Summer taxes may be paid by February 14 without penalty or interest (a deferral, not a reduction). Income limit as printed on Treasury Form 471 (Rev. 03-12).	File Form 471, Application for Deferment of Summer Taxes, with the city, village, or township treasurer before September 15 or before the date summer taxes are due, whichever is later.	Deferment of Property Taxes, Michigan Department of Treasury (with Form 471 and Form 4659 FAQ)

Is military retired pay taxed in Michigan?

Michigan state income tax on military retired pay (checked November 4, 2026)
Treatment	Amount or limit	Source
Fully exempt. MCL 206.30(1)(e)(i) lets taxpayers deduct, to the extent included in AGI, compensation (including retirement or pension benefits) received for service in the U.S. Armed Forces. MCL 206.30(1)(e)(iii) also deducts Michigan National Guard retirement or pension benefits. Michigan's Veterans Affairs Agency also states that military disability retirement pay is not included in taxable income.	No dollar limit: 100% of military retired pay is deductible. It does not count against the general pension-subtraction limits in MCL 206.30(1)(f).	legislature.mi.gov

For the dollars this treatment adds to (or saves on) a retiree’s state tax in 2026, see the military retirement tax by state study; for the pension itself, the military retirement pay calculator.

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Other Michigan veteran benefits

Vehicles and license plates

Michigan: vehicles and license plates for veterans
Benefit	Who qualifies	Amount	Source
Free disabled veteran permanent license plate	Veterans with a total or permanently total disability rating and an honorable discharge get one permanent Disabled Veteran plate for a private passenger vehicle. A surviving spouse may transfer it when the title is transferred. A separate standard Disabled Veteran plate is available to veterans rated 50-90% with an honorable discharge.	The permanent plate is free (Michigan Veterans Affairs Agency) and never expires. A disability placard is still needed to park in disability spaces.	michigan.gov
EX-POW special registration plate (MCL 257.803e)	A former prisoner of war or the spouse of a former POW, regardless of disability rating	One EX-POW plate per household is exempt from the vehicle registration tax under MCL 257.801, which the MVAA describes as a reduced-cost plate. Additional plates pay the normal tax. There is no service fee on application. Purple Heart ('combat wounded veteran'), Pearl Harbor survivor, WWI, Gold Star and Blue Star plates pay the regular registration tax.	legislature.mi.gov

Hunting, fishing and other licenses

Michigan: hunting, fishing and other licenses for veterans
Benefit	Who qualifies	Amount	Source
Free resident hunting and fishing licenses	Michigan resident veteran determined by the VA to be permanently and totally disabled from military service at the 100% rate (for a disability other than blindness), or rated individually unemployable. Must carry proof of status while hunting or fishing.	Any resident license under Part 435 for which a lottery is not required, free of charge	legislature.mi.gov

Education

Michigan: education for veterans
Benefit	Who qualifies	Amount	Source
Children of Veterans Tuition Grant (MCL 390.1344)	Undergraduate student, age 17-25 (aid ends at age 26), who has lived in Michigan for the 12 months before applying, keeps at least a 2.25 cumulative GPA and files a FAFSA every year. The student must be the natural or adopted child of a Michigan veteran who was killed in action, died or became totally and permanently disabled from a service-connected illness or injury, or is listed as MIA.	Up to $2,800 per academic year for full-time students, $2,100 for three-quarter-time and $1,400 for half-time students, or the student's eligible tuition if that is less. Limited to 4 academic years (8 semesters) or $11,200 in total, and subject to available funding.	michigan.gov
In-state tuition for veterans and active-duty members	Veterans and active-duty service members, regardless of state of residency or duty status	In-state tuition rate at Michigan public institutions	michigan.gov

Employment

Michigan: employment for veterans
Benefit	Who qualifies	Amount	Source
Veterans' preference in public employment (MCL 35.401)	Honorably discharged veteran (as defined in MCL 35.61) who has lived in Michigan for at least 2 years. The MVAA states that veterans and their spouses get preference for initial employment with the State of Michigan.	Preference for appointment and employment in every public department and on public works of the state, counties and municipalities, subject to civil service law (1941 PA 370 prevails on conflict)	legislature.mi.gov

State veterans homes

Michigan: state veterans homes for veterans
Benefit	Who qualifies	Amount	Source
Michigan Veteran Homes (Grand Rapids, Marquette/D.J. Jacobetti, Chesterfield Township)	Veterans eligible for USDVA health care or USDVA financial assistance for long-term nursing care. Also dependents (spouse, widow(er), former spouse or Gold Star parent) of a veteran who is, or was at death, eligible for admission.	Three state-run homes providing skilled nursing, long-term, dementia/memory and palliative care. The cost of care was not published in the sources reviewed.	michigan.gov

Other benefits

Michigan: other benefits for veterans
Benefit	Who qualifies	Amount	Source
Free state park entry (Recreation Passport waived)	Medal of Honor recipients, 100% disabled veterans and ex-prisoners of war who have the specialty license plate designation	Free entry to facilities that require a Recreation Passport	michigan.gov
Veteran designation on driver's license or state ID	Veterans of any branch with an honorable or general (under honorable conditions) discharge	No additional charge when added at an original or renewal license or ID. Correction fees apply if it is added at another time.	michigan.gov

Common questions

Does Michigan have a property tax exemption for disabled veterans?

Michigan lists 3 veteran property tax benefits. The main one: Disabled Veteran Homestead Property Tax Exemption (MCL 211.7b, 'Dannie Lee Barnes disabled veteran property tax relief act'). Who qualifies: Michigan-resident veteran, discharged under honorable conditions, who either: (i) is determined by the VA to be permanently and totally disabled from military service and entitled to benefits at the 100% rate; (ii) holds a VA certificate for specially adapted housing assistance; or (iii) is rated individually unemployable by the VA. The veteran must own and use the property as a homestead, with title held solely or jointly with a spouse. An unremarried surviving spouse of an eligible veteran also qualifies, including for a homestead acquired after the veteran's death. No income limit.. Amount: Full exemption from collection of property taxes on the homestead, prorated for a partial year of ownership (MCL 211.7b, General Property Tax Act (Michigan Legislature)).

How do I apply for the Michigan veteran property tax exemption?

Apply to the local assessing officer after January 1 and before December 31 of the year claimed, on the form prescribed by the State Tax Commission. For taxes levied on or after January 1, 2025, a granted exemption stays in effect without reapplication until the owner rescinds it or the assessor denies it. (MCL 211.7b, General Property Tax Act (Michigan Legislature)).

Does Michigan tax military retirement pay?

Fully exempt. MCL 206.30(1)(e)(i) lets taxpayers deduct, to the extent included in AGI, compensation (including retirement or pension benefits) received for service in the U.S. Armed Forces. MCL 206.30(1)(e)(iii) also deducts Michigan National Guard retirement or pension benefits. Michigan's Veterans Affairs Agency also states that military disability retirement pay is not included in taxable income. Amount or limit: No dollar limit: 100% of military retired pay is deductible. It does not count against the general pension-subtraction limits in MCL 206.30(1)(f). (legislature.mi.gov).

What other benefits do veterans get in Michigan?

Free resident hunting and fishing licenses (legislature.mi.gov); Free state park entry (Recreation Passport waived) (michigan.gov); Free disabled veteran permanent license plate (michigan.gov); EX-POW special registration plate (MCL 257.803e) (legislature.mi.gov); Veteran designation on driver's license or state ID (michigan.gov); Children of Veterans Tuition Grant (MCL 390.1344) (michigan.gov); In-state tuition for veterans and active-duty members (michigan.gov); Veterans' preference in public employment (MCL 35.401) (legislature.mi.gov); Michigan Veteran Homes (Grand Rapids, Marquette/D.J. Jacobetti, Chesterfield Township) (michigan.gov). Who qualifies and the amounts are in the tables above.

Sources

Every row above is copied from the official page linked beside it. Benefits change with new laws and local decisions, so confirm the amount and the deadline with the office that runs the program before you apply. QuantCalc is calculation software, not legal, tax or benefits advice. Last updated November 4, 2026.

Michigan senior property tax relief → Michigan state income tax for retirees → Veteran benefits in every state → Military retirement tax by state 2026 → Military retirement pay calculator → 2026 VA disability rates → Military retiree and VA COLA 2027 → VA loan limits 2026 →