Updated January 2026
Michigan Veteran Benefits 2026
Michigan offers several benefits for veterans and military retirees. Here is a summary of the key tax and property benefits available in MI for 2026.
Michigan Highlights
- Full military retirement pay tax exemption
- Full property tax exemption for 100% disabled
- Michigan Veterans Trust Fund
- Free state park access for disabled veterans
Income Tax Treatment
Michigan has a state income tax.
Military Retirement Pay: Michigan fully exempts military retirement pay from state income tax.
Active Duty Pay: Active duty pay is exempt from Michigan income tax.
VA Disability Compensation: VA disability compensation is tax-free at both the federal and state level in all 50 states. Michigan does not tax VA disability payments.
Property Tax Exemption for Disabled Veterans in Michigan
Type: Full exemption at 100%
Michigan provides a 100% exemption from property (ad valorem) taxes on the homestead of a qualifying disabled veteran or their un-remarried surviving spouse, under MCL 211.7b. Qualification is by VA status, not a sliding scale: 100% P&T / entitled to benefits at the 100% rate, OR individually unemployable (TDIU), OR receiving VA specially adapted housing assistance. Claimed via Form 5107 filed with the local assessor.
| VA disability rating / category | What you get |
|---|---|
| 100% permanent & total (P&T), VA-rated at 100% | Full exemption from property taxes on the homesteadVA determination of permanent and total disability resulting from military service and entitled to veterans' benefits at the 100% rate; honorable discharge; MI resident homestead. |
| Individually unemployable (TDIU) | Full exemption from property taxes on the homesteadVA has rated the veteran individually unemployable (TDIU). Explicitly named as a qualifying category in MCL 211.7b. |
| Specially adapted housing (any qualifying rating) | Full exemption from property taxes on the homesteadVA certificate that the veteran has received/is receiving pecuniary assistance for specially adapted housing. |
- Income limit: None.
- Age requirement: None.
- Surviving spouse: Yes. Un-remarried surviving spouse of a qualifying disabled veteran may continue the full exemption while remaining unmarried and occupying the homestead.
- Counts being paid at 100% via unemployability (TDIU)? Yes — being paid at the 100% rate via Individual Unemployability (TDIU) qualifies
Source: MCL 211.7b (exemption); MCL 211.7c (2025 no-annual-reapplication provision); claim via STC Form 5107 and a second official source. Verified June 2026 against primary sources.
To apply, contact your county assessor's office or the Michigan Department of Veterans Affairs. You will typically need your VA disability rating letter (and often your DD‑214) and proof that the home is your primary residence.
Real estate vs. personal property: this benefit applies to real-estate (home/homestead) property tax. Personal-property taxes — such as the annual tax some states levy on vehicles — are separate and generally still apply, even at a 100% rating, unless your state specifically exempts them.
VA Healthcare in Michigan
Michigan has approximately 3 VA medical centers along with community-based outpatient clinics (CBOCs) throughout the state. Veterans enrolled in VA healthcare can receive care at any VA facility nationwide.
To find the nearest VA facility, visit VA.gov Facility Locator.