Michigan Disabled Veteran Benefits

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If you are a disabled veteran living in Michigan, or thinking about moving here, this page puts every state-level benefit tied to your VA (U.S. Department of Veterans Affairs) disability rating in one place: the property tax exemption, state income tax breaks, license plates, parks and hunting/fishing, education for you and your kids, the state veterans homes, hiring preference, and more. Every dollar figure, deadline, and form name below comes from an official Michigan source, and I link that source so you can check it yourself. Where the state's own pages leave a number unsettled, I tell you to confirm it rather than guess.

Plain-language promise: I keep the how-to steps here so you can act. The only thing I route out is filing or increasing a VA claim, because that is free claims work best handled by an accredited Veterans Service Officer (VSO), never a paid company.

Pending — a proposed sales-tax break when a disabled veteran buys a vehicle, but it is NOT law yet. A bill in the current legislative session would exempt from Michigan sales tax a motor vehicle bought by a qualified disabled veteran when the vehicle is registered to the veteran for personal use. As of this writing it is still in committee, has not passed, and is not in effect — and it is written to take effect only if a companion bill also becomes law. Do not rely on it or expect a dealer to honor it until it is enacted. Michigan does not currently offer a general disabled-veteran vehicle sales-tax exemption.

Source track the bill's status at the Michigan Legislature

Property tax exemption

What it is: Michigan has one of the most generous veteran property tax benefits in the country. Under Michigan's Disabled Veterans Exemption, real property that a qualifying disabled veteran (or the veteran's un-remarried surviving spouse) owns and uses as a homestead is fully (100%) exempt from property taxes. There is no partial exemption — the home either fully qualifies or it does not — and there is no cap on the home's value and no income test. Special assessments (things like a road or sewer assessment) can still apply.

Every route to the full exemption (you need to meet just ONE). The law defines a qualifying “disabled veteran” as a Michigan resident who was discharged or released under honorable conditions (a General discharge under honorable conditions also counts; OTH and dishonorable do not) and meets any one of these three:

• Route 1 — 100% rating. The VA has determined you are permanently and totally disabled as a result of military service and entitled to veterans' benefits at the 100% rate.
• Route 2 — specially adapted housing. You have a certificate from the VA certifying that you have received (or are receiving) pecuniary assistance for specially adapted housing (the VA adaptive-housing grant).
• Route 3 — Individual Unemployability. The VA has rated you Individually Unemployable (IU). This is a distinct route in the law: if the VA pays you at the 100% rate because you cannot maintain substantially gainful employment due to service-connected disability, you qualify even if your schedular rating is below 100%.

Note the property must be your homestead (owned and used as your principal residence).

Surviving spouse: the exemption continues for the veteran's un-remarried surviving spouse who was eligible immediately before the veteran's death, and it can carry to a later homestead the surviving spouse acquires, as long as they do not remarry.

Good news on refiling: for taxes levied on or after January 1, 2025, an approved Disabled Veterans Exemption stays in effect without annual reapplication until it is rescinded by the taxpayer or denied by the assessor — you no longer have to refile every year. If you stop qualifying (you sell, move, or your status changes), you must file a rescission within 45 days of that change, not by a fixed calendar date.

1. Get your paperwork together: your VA rating letter (showing 100% at the 100% rate, IU status, or your specially adapted housing certificate) and your discharge document (DD Form 214).
2. Complete and file Michigan Treasury Form 5107, Affidavit for Disabled Veterans Exemption: Form 5107 (PDF).
3. File Form 5107 with your local city or township assessor (they administer the exemption, not the state). Check with your assessor for the filing deadline in your community — the affidavit is generally filed after the assessment roll is prepared and can be presented to the local Board of Review.
4. Because approvals now continue without annual refiling, keep proof of your approval. If you sell, move, or stop qualifying, file Form 6054 (Request to Rescind Disabled Veterans Exemption) within 45 days of the change.
5. Confirm it posted by checking your next tax bill for the exemption, or call the assessor a few weeks after filing.

Sources the statute (MCL 211.7b) · rescission statute (MCL 211.7c) · State Tax Dept exemption page · State Tax Commission info page · the 2024 procedural bulletin · property tax guide for veterans

State income tax

What it is: Michigan does not add state tax on top of your already federally tax-free VA disability compensation, and it fully exempts military retirement pay.

• VA disability compensation is federally tax-free, and Michigan follows the federal treatment — it is not reported as Michigan taxable income. (This is the general federal rule restated on Michigan's military-tax page; confirm nothing on your own return re-adds it.)
• Military retirement pay is exempt from Michigan individual income tax. Retirement benefits paid for service as a member of the U.S. armed forces are deducted on the Michigan return (deducted on Schedule 1 (PDF) and reported on Schedule W (PDF) even if no Michigan tax was withheld).
• Michigan National Guard state retirement pay is also not subject to Michigan income tax (still subject to federal tax).
• One interaction to know: for tax years 2026–2028, Michigan's standard deduction is reduced by any amount you deduct for military or National Guard retirement compensation, so the two do not stack — confirm the current-year mechanics in the state's tax guidance.

1. Confirm your VA disability compensation never appears as income on your Michigan return (it should not appear on your federal return either, and Michigan starts from your federal figures).
2. If you receive military retirement pay, take the military-retirement deduction on the current-year Michigan return and report it on Schedule W; check the current Michigan military-tax instructions for the exact lines, since forms change.
3. If a prior return taxed your VA compensation or military retirement by mistake, fix it with a preparer familiar with military filings or by contacting the Michigan Dept. of Treasury — this is a filing mechanic, not claims work.

Sources State Tax Dept military-tax page · military-retirement Q&A · the 2026 tax bulletin

Vehicles, plates & tolls

What it is: the Michigan Secretary of State (SOS) issues Disabled Veteran (DV) license plates. What you pay depends on your rating: totally disabled veterans get the plate and registration for free; partially disabled veterans (50%+) get the plate itself free but still pay standard registration. Michigan has no toll roads, so there is no state toll benefit.

• Totally disabled veterans (the free tier): a veteran the VA has determined to have a service-connected total (100%) and permanent disability — which includes being paid at the 100% rate through Individual Unemployability — or who receives military disability retirement pay, gets the DV plate with no plate service fee and an exemption from the registration tax (no annual registration fee), including free renewal.
• Partially disabled veterans, 50%–99% (newer, expanded eligibility): as of a 2024 law change, a veteran with a VA service-connected rating of at least 50% can get the DV plate with no plate service fee, but standard annual registration fees still apply at this tier.
• Surviving spouse: the un-remarried surviving spouse of an eligible disabled veteran may continue to use the DV plate.
• Vehicle sales tax: Michigan does not currently exempt a disabled veteran's vehicle purchase from sales tax (see the pending vehicle sales-tax note in the callout at the top of this page — not yet law).

1. Get your VA disability rating letter (showing 100%/permanent-and-total, IU, or your 50%+ rating) and your DD Form 214.
2. Apply at any Michigan SOS branch office for the Disabled Veteran plate, using the form the SOS prescribes. Ask the branch to confirm your fee tier: free plate and free registration if you are totally disabled/100%-rate/IU, or free plate but standard registration if you are 50%–99%.
3. Confirm the exact dollar figures at the counter before you pay — the SOS sets current fee amounts and they can change.

Sources the statute · Secretary of State plate options · the 2024 plate-law expansion · Secretary of State military resources

Recreation: parks, hunting & fishing

What it is: the Michigan Department of Natural Resources (DNR) gives free state-park entry to the most seriously disabled veterans and free hunting/fishing licenses to disabled veterans who are totally disabled or Individually Unemployable.

• Free Recreation Passport (state-park and day-use entry): disabled veterans, Medal of Honor recipients, and former prisoners of war get free entry to facilities that require the Recreation Passport (state parks and recreation areas, state-forest campgrounds, boating access sites, and trails). To claim it you must hold a valid Michigan Disabled Veteran, Medal of Honor, or Ex-POW license plate — and per the statute, this covers any Disabled Veteran plate, including the 50%–99% tier, not just the 100% tier. Questions: [email protected] or 517-284-7275.
• Pending, not law: a bill (SB 821) would create a sliding-fee lifetime hunting/fishing license for disabled veterans (free at 100% P&T, $50 at 70%+, $75 at 50–69%, $100 at 30–49%), earliest effective July 1, 2027. Still in committee — not available yet.
• Free hunting & fishing licenses: a Michigan resident veteran whom the VA has determined to be permanently and totally disabled and entitled to benefits at the 100% rate (for a disability other than blindness), or whom the VA has rated Individually Unemployable, can get any resident hunting or fishing license that does not require a lottery/drawing, free of charge. Drawing-based tags (such as bear or elk) still require the normal application/drawing fee. Bring documented proof of your disabled-veteran status when you apply, and carry it while using the license.

1. For the free Recreation Passport, make sure you hold a valid Michigan Disabled Veteran (or Medal of Honor / Ex-POW) plate, then confirm the free-entry designation with the DNR or when you renew your plate.
2. For free licenses, get your VA letter showing 100%-rate permanent-and-total disability or IU status.
3. Apply through any DNR license retailer or the DNR e-license system, present your proof of disabled-veteran status, and request the free non-lottery license.

Sources DNR Recreation Passport · Recreation Passport statute (MCL 324.74116) · Veterans Affairs Agency recreation page · DNR license info · SB 821 (pending)

Education for you & your family

What it is: tuition help for the children of veterans who died or became totally and permanently disabled from service, plus licensing-fee waivers for the veteran.

• Children of Veterans Tuition Grant (for your child): undergraduate tuition help for the natural or adopted child of a Michigan veteran who died or became totally and permanently disabled as a result of a service-connected illness or injury (as determined by the VA), or is missing in action. The child must be age 16–25, a Michigan resident for 12 months before applying, enrolled at least half-time at an approved Michigan school, keep at least a 2.25 GPA, and file the Free Application for Federal Student Aid (FAFSA) each year. The award is tiered by enrollment level up to a lifetime maximum of $11,200 (up to 4 academic years / 8 semesters). Confirm the current per-term award amounts on the official fact sheet, since they can change.
• Occupational and professional licensing fee waivers (for you): Michigan's Dept. of Licensing and Regulatory Affairs (LARA) must waive the initial license/registration fee and initial application processing fee for an initial license under the licensing acts it administers, for veterans who provide a DD Form 214 or DD-215 correction (or other proof LARA accepts). Michigan maintains an interactive licensing resource covering many professions.

1. If you have a college-age child and you are rated totally and permanently disabled from service (or a surviving parent of a veteran who died from service), have them read the official fact sheet and confirm current-year eligibility with MI Student Aid.
2. Have the student file the FAFSA and apply through MI Student Aid, submitting the required VA and service documentation. Coordinate with the school's financial-aid office so the grant applies to actual tuition.
3. If you are getting an initial Michigan professional or occupational license, ask LARA up front to waive the initial fees for veterans and submit your DD-214.

Sources the tuition-grant fact sheet · MI Student Aid program page · the tuition-grant law · LARA fee waiver · LARA licensing resources

State Veterans' Homes & long-term care

What it is: Michigan runs Michigan Veteran Homes (MVH), state long-term and skilled-nursing facilities, at three locations: Grand Rapids (2950 Monroe Ave NE, Grand Rapids, MI 49505; admissions 616-345-6110), Chesterfield Township (47901 Sugarbush Road, Chesterfield Township, MI 48047; admissions 586-210-7103), and D.J. Jacobetti Home for Veterans in Marquette (425 Fisher Street, Marquette, MI 49855; admissions 906-226-3576), serving the Upper Peninsula.

• Who can be admitted: an discharged or released under honorable conditions (a General discharge under honorable conditions also counts; OTH and dishonorable do not) veteran who is eligible for U.S. Department of Veterans Affairs health care or financial assistance for long-term nursing care, or an eligible dependent (a widow/widower, spouse or former spouse, or Gold Star parent) of a veteran who was or would have been eligible. Michigan residency is not required. Admission is based on the date of a completed application and the home's ability to meet the resident's needs.
• Cost and your VA rating: a highly rated service-connected disabled veteran generally has the VA cover much or all of the cost of nursing-home care in a state home — confirm your specific coverage with the home's admissions office and the VA, since it turns on your rating and VA eligibility.

1. Pick the closer home (Grand Rapids, Chesterfield Township, or Marquette) from the MVH locations page.
2. Review the MVH eligibility page and confirm you (or your dependent) meet the service and care-need requirements.
3. Call that home's admissions office (Grand Rapids 616-345-6110; Chesterfield 586-210-7103; Marquette 906-226-3576), ask for the application packet, and confirm your specific out-of-pocket cost given your VA rating.
4. Have your discharge document (DD Form 214) and VA rating letter ready to submit.

Sources Michigan Veteran Homes locations · MVH eligibility · Veterans Affairs Agency benefits page

State hiring & civil service

What it is: Michigan adds veterans' preference points to state-government hiring scores, with extra points for disabled veterans, and gives a procurement preference to service-disabled veteran-owned businesses.

• Veterans' preference in state employment: preference points are added to a candidate's final score for Michigan state-government jobs. A 10-point preference goes to veterans with a service-connected disability, Purple Heart recipients, and eligible surviving spouses; a 5-point preference goes to other eligible veterans (generally 90+ days of honorable active-duty service) and to spouses of active-duty service members. Preference does not guarantee a job. You must claim it when you apply and submit your DD-214.
• Service-Disabled Veteran-Owned Business preference: Michigan's Dept. of Technology, Management & Budget (DTMB) gives a bid preference to certified service-disabled veteran-owned businesses competing for state contracts.

1. When you apply for a Michigan state job, claim veterans' preference in the application and request the 10-point disabled-veteran preference, with your DD Form 214 and VA rating letter ready.
2. If you own a business, look into certifying as a service-disabled veteran-owned business and using the DTMB bid preference on state contracts.

Sources the veterans-preference law · DTMB business preference

Other: emergency grants, burial, veteran business

What it is: a state emergency-grant fund for veterans in a temporary hardship, county-level burial help, and a business-filing fee waiver.

• Michigan Veterans Trust Fund (MVTF) emergency grant: short-term grants for a Michigan veteran or dependent family member facing an unforeseen, temporary emergency where the applicant can show they can meet future expenses. Eligibility generally requires Michigan residency and honorable service with 180 days during a period of war, 180 days of active duty with an Armed Forces/expeditionary medal, or a service-incurred disability if you served fewer than 180 days. Apply through your county MVTF committee. Statewide line 1-800-MICH-VET (1-800-642-4838).
• County burial / soldiers' relief: Michigan burial and indigent-veteran relief allowances are administered county by county, so the amount and rules vary — there is no single statewide figure. Contact your county Department/Office of Veterans Affairs for local eligibility and amounts; the MVAA can point you to your county office.
• Business-filing fee waiver for veterans: LARA's Corporations, Securities & Commercial Licensing Bureau waives certain fees for veterans; confirm which specific filings qualify with LARA directly, since the exact scope is not fully spelled out online.

1. If you hit a sudden, temporary financial emergency, call 1-800-MICH-VET or contact your county MVTF committee about an emergency grant — have proof of the emergency and your service/discharge documents ready.
2. For burial help, call your county Veterans Affairs office before arrangements are finalized to learn the local allowance.
3. If you are forming or filing for a business, ask LARA whether the veteran fee waiver covers your filing.

Sources Veterans Affairs Agency emergency assistance · Veterans Affairs Agency · LARA fee waiver

Who to call

The Michigan Veterans Affairs Agency (MVAA) is your single front door for the programs above and for connecting with a free accredited VSO to help with a VA claim, rating, or benefit application.

• Website: michigan.gov/mvaa
• Michigan Veteran Resource Service Center: 1-800-MICH-VET (1-800-642-4838) — helps with discharge documents, connecting to accredited VSOs, and finding benefits.
• Michigan Dept. of Military and Veterans Affairs (DMVA): michigan.gov/dmva
• Property tax questions: your local city or township assessor (they administer the exemption) plus the State Tax Dept exemption page.

1. Anything tied to your actual VA rating — filing a new claim, appealing, or arguing for a higher percentage — goes to a free accredited VSO. Call 1-800-642-4838 or find one at VA.gov. Never pay a private company for basic claims help.
2. State-program questions (property tax, plates, parks, education, homes, hiring) go to the specific office linked in that section, or start at michigan.gov/mvaa.

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