
Key Takeaways
- Michigan exempts all military retirement pay from state income tax and offers complete property tax exemption for 100% disabled veterans and those rated individually unemployable
- Beginning in 2026, veterans no longer need to reapply annually for the disabled veterans property tax exemption—once approved, it remains in effect until circumstances change
- Three state veterans homes in Grand Rapids, Chesterfield Township, and Marquette provide award-winning skilled nursing care with costs based on ability to pay
- The Children of Veterans Tuition Grant provides up to $2,800 per year for dependents of 100% disabled or deceased veterans at Michigan colleges
- Veterans with 100% disability or IU rating receive free hunting and fishing licenses plus free entry to Michigan state parks
Table of Contents
- Michigan Veteran Tax Benefits
- Property Tax Exemption
- Education Benefits
- Healthcare and Veterans Homes
- Employment Benefits
- Recreation Benefits
- License Plates and Vehicle Benefits
- Burial Benefits
- Michigan Veteran Resources
- Frequently Asked Questions
Michigan is home to approximately 550,000 veterans and provides a comprehensive package of state benefits to honor their service. From complete military retirement pay tax exemption to award-winning state veterans homes, the Great Lakes State offers substantial support for those who served.
This guide covers every Michigan veteran benefit available in 2026, including eligibility requirements, application processes, and contact information for the agencies that administer these programs.
Michigan Veteran Tax Benefits
Michigan provides significant tax advantages for military retirees and veterans, making it one of the more tax-friendly states for those who served.
Military Retirement Pay Exemption
Michigan completely exempts military retirement pay from state income tax. This applies to retirement pay from all branches of the U.S. Armed Forces, including reserve and National Guard retirement. Veterans do not need to take any special action beyond excluding this income on their state tax return.
Active Duty Pay Exemption
Military pay earned while serving on active duty is exempt from Michigan state income tax. This includes basic pay, special pay, bonuses, and combat zone exclusions.
Survivor Benefit Plan (SBP) Exemption
Survivor Benefit Plan payments and Dependency and Indemnity Compensation (DIC) are also tax-free at the state level in Michigan.
Additional Veteran Income Tax Exemption
Michigan provides an additional $500 personal exemption for disabled veterans on top of the standard personal exemption. This reduces taxable income for veterans with service-connected disabilities.
Property Tax Exemption
Michigan offers a valuable property tax exemption for severely disabled veterans that can eliminate property taxes entirely on their primary residence.
Disabled Veterans Property Tax Exemption
Real property used and owned as a homestead by a qualifying disabled veteran is completely exempt from property taxes in Michigan. This is a 100% exemption—not a partial reduction.
Eligibility Requirements
To qualify for the disabled veterans property tax exemption, you must meet one of the following criteria:
- 100% Permanent and Total Disability: Determined by the VA to be permanently and totally disabled as a result of military service and entitled to veterans’ benefits at the 100% rate
- Specially Adapted Housing: Have a certificate from the VA certifying receipt of pecuniary assistance for specially adapted housing
- Individual Unemployability (IU): Rated by the VA as individually unemployable
Additionally, you must:
- Be a Michigan resident
- Own and occupy the property as your primary residence (homestead)
- Have been discharged or released from the Armed Forces under honorable conditions
- Hold legal title solely in your name or jointly with your spouse
Surviving Spouse Eligibility
An unremarried surviving spouse of a qualifying disabled veteran can continue to receive the property tax exemption if the veteran was eligible immediately before death. The exemption continues as long as the surviving spouse does not remarry, and it can apply to any property they own and occupy as a homestead—including property acquired after the veteran’s death.
How to Apply
File Form 5107 (Affidavit for Disabled Veterans Exemption) with your local assessing officer. The application must be filed between January 1 and December 31 of the year for which the exemption is requested. Required documentation includes:
- VA letter confirming 100% permanent and total disability, IU rating, or specially adapted housing assistance
- DD-214 or other proof of honorable discharge
- Proof of Michigan residency
Important Change for 2026
Beginning in 2026, exemptions that were previously granted will automatically remain in place until rescinded by the property owner or denied by the assessor. Veterans no longer need to reapply annually. If your circumstances change (such as moving to a new property or no longer meeting eligibility requirements), you must file Form 6054 to rescind the exemption within 45 days.
Homestead Property Tax Credit
Veterans who don’t qualify for the full exemption may still benefit from Michigan’s Homestead Property Tax Credit, which provides refunds for property taxes that exceed a certain percentage of household income. Veterans with disabilities may receive enhanced credit amounts.
Education Benefits
Michigan offers education benefits primarily focused on National Guard members and the children of severely disabled or deceased veterans.
Children of Veterans Tuition Grant (CVTG)
The CVTG provides undergraduate tuition assistance to children of Michigan veterans who died or became permanently and totally disabled as a result of military service.
Eligibility Requirements
- Natural or adopted child of a Michigan veteran
- Veteran parent must have died or become 100% permanently disabled due to service-connected causes
- Student must be between 16 and 26 years old
- Michigan resident for 12 months prior to application
- Enrolled at a Michigan community college, public university, or independent degree-granting institution
Award Amounts (Per Academic Year)
- Full-time students: Up to $2,800
- Three-quarter time students: Up to $2,100
- Half-time students: Up to $1,400
Students may receive assistance for up to four academic years, with a lifetime maximum of $11,200. Apply through Michigan Student Aid.
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Michigan National Guard State Tuition Assistance Program (MINGSTAP)
Active members of the Michigan National Guard (Army or Air) can receive tuition assistance at any public or private college, university, or trade school in Michigan.
Award Amounts
- Training/certificate programs or master’s degrees: Up to $6,000 per year ($600 per credit hour)
- Associate or bachelor’s degrees: Up to $14,400 per year
- Lifetime limits: $86,000 for undergraduate, $25,000 for graduate
Family Member Eligibility
A 2023 law expanded MINGSTAP to include spouses and dependent children of Michigan National Guard members. This allows family members to use the tuition assistance benefit at Michigan schools.
In-State Tuition for Veterans
Michigan public colleges and universities provide in-state tuition rates to veterans and active-duty service members regardless of their state of residency or duty status. This aligns with federal requirements under the Veterans Access, Choice, and Accountability Act.
High School Diplomas for Veterans
Michigan school districts are authorized to award honorary high school diplomas to WWII, Korean War, and Vietnam era veterans who left school to serve. Contact your local school district if you or a family member may qualify.
Healthcare and Veterans Homes
In addition to VA healthcare, Michigan operates three state veterans homes that have earned national recognition for quality care.
Michigan Veteran Homes
Michigan operates three veterans homes across the state:
- Grand Rapids: Established 1885, renovated with modern facilities. 128 beds in private rooms with bathrooms, located on 90 wooded acres. Phone: (616) 345-6110
- Chesterfield Township: Ranked #1 nursing home in Michigan (2025). 128 beds serving the Detroit metro area. Phone: (586) 210-7103
- D.J. Jacobetti (Marquette): Serving Upper Peninsula veterans. A new $100+ million facility is currently under construction with 100+ beds. Phone: (906) 225-6889
All three homes received the 2025 Bronze National Quality Award from the American Health Care Association, and hold 5-star ratings.
Services Provided
- Skilled nursing care
- Memory care for dementia and Alzheimer’s
- Rehabilitation therapy (physical, occupational)
- In-house pharmacy
- Recreational activities and programs
- Barber and beauty services
- Chapel and multi-faith services
Eligibility
- Served at least 90 days of active duty (180 days for those enlisting after September 7, 1980)
- Discharged under other than dishonorable conditions
- Michigan resident at time of admission or service credited to Michigan
- Eligible for VA health care or financial assistance for long-term care
Dependents (surviving spouses, former spouses, Gold Star parents) may also be eligible if the veteran was eligible or would have been eligible at the time of death.
Cost of Care
Monthly costs are based on the veteran’s ability to pay, determined by monthly income (assets are not considered). The cost is significantly below comparable private facilities. Contact the admissions office at any home for current rates and financial assessment.
VA Healthcare Facilities in Michigan
Michigan is served by multiple VA healthcare facilities:
- VA Ann Arbor Healthcare System
- John D. Dingell VA Medical Center (Detroit)
- Battle Creek VA Medical Center
- Oscar G. Johnson VA Medical Center (Iron Mountain)
- Aleda E. Lutz VA Medical Center (Saginaw)
- Numerous community-based outpatient clinics statewide
Employment Benefits
Michigan provides hiring preferences for veterans seeking state employment, along with programs to help veterans transition to civilian careers.
State Employment Veterans’ Preference
Veterans and eligible spouses receive preference points when applying for Michigan civil service positions. These points are added to final scores after meeting minimum qualifications.
Preference Points for Exam-Based Selection
- 5 points: Veterans with honorable discharge or surviving spouses
- 10 points: Disabled veterans, spouses of disabled veterans unable to work, surviving spouses of veterans who died from service-connected causes
Agency Preference (Non-Exam Selection)
- 5% of highest possible score: Added for veterans and surviving spouses
- 10% of highest possible score: Added for disabled veterans and qualifying spouses
Eligibility Requirements
To qualify for veterans’ preference, you must:
- Have served 90+ days of active duty in the U.S. Armed Forces
- Received honorable discharge
- Not be eligible for military retired pay (preference is for initial employment only)
Register at the Michigan Civil Service Commission Veterans Registration webpage to receive preference.
Military Spouse Temporary Licensing
Temporary professional licenses are available to spouses of active-duty service members who hold valid licenses from other states. This allows military spouses to continue their careers while stationed in Michigan.
Michigan Works! Priority of Service
Veterans receive priority of service at all Michigan Works! employment centers. Services include job search assistance, resume development, training programs, and connections to employers. Identify yourself as a veteran when entering any service center. Find your nearest location at MichiganWorks.org or call 1-800-285-WORKS (9675).
Recreation Benefits
Michigan offers generous recreation benefits for disabled veterans, including free licenses and state park access.
Free Hunting and Fishing Licenses
Michigan resident veterans who meet one of the following criteria receive all non-lottery hunting and fishing licenses free of charge:
- 100% permanent and total disability rating from the VA (for disabilities other than blindness)
- Rated as individually unemployable by the VA
When applying for free licenses, bring a letter from the VA documenting your disability status. You must also carry this documentation while hunting or fishing. Licenses can be obtained at any DNR Customer Service Center or online.
Active Duty Service Member Licenses
Full-time, active-duty military members who maintain Michigan residency receive free hunting and fishing licenses (except lottery-based licenses). Nonresident service members stationed in Michigan can purchase licenses at resident rates.
Free State Park Entry
Veterans who are 100% permanently and totally disabled receive free entry to Michigan state parks. Veterans with valid Ex-Prisoner of War, Medal of Honor, or Disabled Veteran license plates receive free lifetime access to state parks.
Quiet Fireworks Camping
The Michigan Department of Natural Resources and MVAA offer designated “Quiet Fireworks” camping options at select campgrounds for veterans who prefer to avoid holiday fireworks displays. Contact DNR for participating locations.
Michigan Outdoor Field Operation (MiOFO)
This collaborative program provides outdoor recreation opportunities specifically designed for wounded veterans and individuals with health challenges. Activities take place at Sharonville State Game Area and Camp Liberty, focusing on recovery through connecting with nature.
License Plates and Vehicle Benefits
Michigan offers numerous special license plates honoring military service, with additional benefits for certain plate holders.
Disabled Veteran License Plates
- 50%+ disability rating: May register one vehicle with a disabled veteran standard plate for free (plates expire on veteran’s birthday)
- Total or permanent disability: Eligible for free disabled veteran permanent plate
Special Recognition Plates
Michigan offers specialty plates for veterans including:
- Purple Heart recipients
- Medal of Honor recipients
- Former Prisoners of War
- Pearl Harbor survivors
- Combat veterans by era (WWII, Korea, Vietnam, Desert Storm, OEF/OIF)
- Branch-specific plates
- Gold Star family members
Visit the Michigan Secretary of State website for the complete list of available plates and eligibility requirements.
Burial Benefits
Michigan provides burial assistance and access to national cemeteries for eligible veterans.
County Burial Assistance
Under Michigan law, eligible veterans and some spouses or surviving spouses who meet residency and asset limits may qualify for up to $300 for burial expenses paid by the County Board of Commissioners. Contact your county’s veterans affairs office for eligibility requirements.
National Cemeteries
Michigan does not currently operate a state veterans cemetery, but the state is served by two national cemeteries:
- Fort Custer National Cemetery – Augusta (Battle Creek area)
- Great Lakes National Cemetery – Holly
Both cemeteries provide burial at no cost to eligible veterans and their dependents. Benefits include grave site, opening/closing of grave, headstone or marker, and perpetual care.
Military Funeral Honors
Honorably discharged veterans are entitled to military funeral honors including flag folding and presentation and the playing of Taps. Contact your local funeral home or veteran service organization to arrange honors.
Michigan Veteran Resources
Michigan Veterans Affairs Agency (MVAA)
The Michigan Veterans Affairs Agency is the primary state agency serving veterans. MVAA provides:
- Assistance with VA claims and benefits
- Emergency financial assistance referrals
- Connections to healthcare, education, and employment programs
- Support for transitioning service members
Contact MVAA at 1-800-MICH-VET (1-800-642-4838).
County Veteran Service Officers
Every Michigan county has a veteran service officer who can help with claims, benefits applications, and connecting to local resources. Find your county VSO through MVAA or your county government website.
Military Installations
Michigan hosts several military installations including:
- Selfridge Air National Guard Base
- Camp Grayling (largest National Guard training facility in the country)
- Fort Custer Training Center
Frequently Asked Questions
No. Michigan completely exempts military retirement pay from state income tax. This includes retirement from all branches of service, reserve retirement, and National Guard retirement.
You must be a Michigan resident with a 100% permanent and total disability rating, individual unemployability (IU) rating, or be receiving VA specially adapted housing assistance. File Form 5107 with your local assessor before December 31 of the tax year. Beginning in 2026, you won’t need to reapply annually.
Yes. The Children of Veterans Tuition Grant provides up to $2,800 per year for dependent children (ages 16-26) of veterans who died or became 100% disabled due to military service. The grant can be used at any Michigan college or university for up to four years.
Yes. Michigan residents with a 100% permanent and total disability rating or individual unemployability rating receive all non-lottery hunting and fishing licenses free of charge. Bring your VA disability letter when applying.
Michigan operates three state veterans homes: Grand Rapids, Chesterfield Township (Detroit area), and D.J. Jacobetti (Marquette in the Upper Peninsula). All three are 5-star rated facilities providing skilled nursing care. Costs are based on ability to pay, and eligible spouses may also be admitted.
Yes. Veterans receive 5-10 preference points on civil service examinations, depending on disability status. You must register with the Michigan Civil Service Commission to receive preference.
This article is provided by USMilitary.org, an independent educational resource. We are not affiliated with the Michigan Veterans Affairs Agency or any government agency. For official benefit information and applications, visit michigan.gov/mvaa or contact your local veteran service officer.