Updated August 2026

Michigan Veteran Benefits 2026

The Great Lakes State — big water, big backing for the people who served.

Michigan pairs Great Lakes recreation with serious benefits: plate exemptions, free licenses at 100%, and college money for your kids. Verified against Michigan law and agency pages, claim by claim.

Michigan Highlights

Full military retirement pay tax exemption
Full property tax exemption for 100% disabled
Registration-tax-free permanent DV plate for totally disabled veterans (50–90% get the plate, not the tax break)
No Recreation Passport needed for vehicles with a DV, Ex-POW, or Medal of Honor plate
Free hunting & fishing licenses at 100% P&T or individual unemployability
Children of Veterans Tuition Grant — up to $2,800/year
Michigan Veterans Trust Fund emergency grants

The Mackinac Bridge spanning the Straits of Mackinac between Michigan's Lower and Upper Peninsulas — Mackinac Bridge over the Straits of Mackinac. Roman Boed (CC BY 2.0)

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

Recent change: Effective beginning the 2025 tax year (Jan 1, 2025), under amendments codified at MCL 211.7c, once the exemption is granted it continues without requiring annual reapplication by the disabled veteran or un-remarried surviving spouse (eliminating the prior every-year refiling burden). Note: ongoing legislative proposals would convert the exemption to a state-funded credit/move administration to the state — verify whether any such change has taken effect.

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.

Check your exemption by rating & state →

Vehicle & Registration Benefits

Disabled Veteran (DV) plate — no registration tax for totally disabled veterans: Under MCL 257.803f, a veteran with an honorable discharge whom the VA has determined to have a service-connected total or permanent total disability rating for compensation (or who holds that rating and receives disability retirement pay from a branch of the armed forces) can register one private passenger vehicle (motor homes excluded) with a DV plate that is exempt from the annual registration tax, with no service fee at application or renewal. The Secretary of State issues it as a permanent, non-expiring plate, and spouses of a deceased veteran may transfer it to their name when the title is transferred — see the SOS military & veteran plate options page. One caveat: a disability parking placard is still required to use a DV plate to park in a disability space.

50–90% ratings — the plate without the tax break (since April 2, 2025): 2024 PA 149 amended MCL 257.803f so a partially disabled veteran with a VA service-connected rating of not less than 50% and an honorable discharge can also get one standard DV plate with a renewal tab (SOS lists it as the 50%–90% plate, expiring on the applicant’s birthday). There is no service fee, but the statute’s registration-tax exemption applies only to the totally disabled categories — the standard 50–90% plate still pays the normal annual registration tax. A surviving spouse of a veteran rated 50% or higher may keep using and renewing the DV plate after the veteran’s death.

Ex-POW, Purple Heart, Gold Star & other military plates: Under MCL 257.803e, one Ex-Prisoner of War plate per household is exempt from registration tax, and applications for Ex-POW, Pearl Harbor Survivor, Combat Wounded Veteran (Purple Heart), Gold Star Family, and Blue Star Family plates carry no service fee — though apart from that one household Ex-POW plate, these plates are still assessed the normal registration tax. In all, SOS offers more than 30 military and veteran plate designs — branch-veteran plates (Army, Navy, Air Force, Marine Corps, Coast Guard), campaign plates from World War II through the Afghanistan Conflict, Medal of Honor, National Guard, Merchant Marine, Woman Veteran, and more — ordered with the veteran plate application (form BDVR-87).

No vehicle sales-tax exemption — don’t get caught by the rumor: Michigan does not currently exempt a disabled veteran’s vehicle purchase from sales or use tax. House Bill 5274 (introduced November 12, 2025) would create an exemption for veterans meeting the MCL 211.7b disabled-veteran definition, but it has sat in the House Government Operations Committee since introduction and is not law. Until something passes, budget for full sales tax on a vehicle purchase.

Recreation: Parks, Hunting & Fishing

State parks — Recreation Passport waived for DV-plated vehicles: Michigan’s Recreation Passport ($15 per year for a resident vehicle as of Jan 1, 2026) is the vehicle-entry pass for all 103 state parks and recreation areas, 140-plus state forest campgrounds, and nearly 1,000 boating access sites. The DNR does not require a passport for a Michigan-registered vehicle with a valid resident Disabled Veteran, Ex-Prisoner of War, or Medal of Honor plate. The MVAA recreation page describes this as free entry for Medal of Honor recipients, 100% disabled veterans, and ex-POWs — and stresses that you must have the specialty license plate to get in free. Entry on foot or by bicycle never requires a passport; camping and lodging fees are separate and still apply.

Free hunting & fishing licenses — 100% P&T or individually unemployable residents: Under MCL 324.43537, a “disabled veteran” — defined as a Michigan resident the VA has determined to be permanently and totally disabled as a result of military service and entitled to benefits at the 100% rate (for a disability other than blindness), or rated individually unemployable (TDIU) — may obtain any resident hunting or fishing license for which a lottery is not required, free of charge. The DNR license information page words it as any license “that does not require a separate application” and reminds veterans to carry VA documentation of eligibility both when obtaining licenses and while afield. Ratings below 100% (without a TDIU determination) do not qualify for the free licenses.

Education & Other Michigan Benefits

Children of Veterans Tuition Grant (CVTG): Michigan pays undergraduate tuition assistance of up to $2,800 per academic year for full-time students ($2,100 three-quarter time, $1,400 half time), capped at four academic years (8 semesters) or $11,200 total, to the natural or adopted child of a Michigan veteran who died in service, died of or became totally and permanently disabled from a service-connected illness or injury, or is listed as missing in action. The student must be older than 16 and younger than 26, a Michigan resident for 12 months before applying, an undergraduate enrolled at least half-time at a participating Michigan institution with a cumulative GPA of at least 2.25, and must file the FAFSA each year. Apply through the MiSSG Student Portal (2026–27 deadline: June 30, 2027) — details at MI Student Aid — Children of Veterans Tuition Grant.

Michigan Veterans Trust Fund (MVTF) emergency grants: Created in 1946 from $50 million in post–World War II reserve funds, the MVTF Emergency Grant Program helps veterans through an unforeseen circumstance causing a temporary or short-term financial emergency — historically everything from utility bills to home repairs to mortgage assistance — that a one-time grant will resolve. Core eligibility is an honorable discharge (or general discharge under honorable conditions) plus 180 days of active-duty service during a period of war; since December 2021 the 65+ Peacetime Program also covers peacetime-era veterans who are 65 or older with at least 180 days of service. Apply through the MVTF county committee serving your county.

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.

Official Michigan Veterans Resources

Frequently Asked Questions

Does Michigan tax military retirement pay?

Michigan fully exempts military retirement pay from state income tax.

Does Michigan offer property tax exemptions for disabled veterans?

Does Michigan have a state income tax?

Michigan has a state income tax. Michigan fully exempts military retirement pay from state income tax.

Do disabled veterans pay vehicle registration fees in Michigan?

Veterans with a VA service-connected total or permanent total disability rating and an honorable discharge can register one private passenger vehicle with a Disabled Veteran plate that is exempt from Michigan's annual registration tax, with no service fee, under MCL 257.803f. The plate is permanent and non-expiring. Since April 2, 2025, veterans rated 50-90% can also get a standard DV plate with no service fee, but that tier still pays the normal annual registration tax.

Is a disabled veteran exempt from vehicle sales tax in Michigan?

No. Michigan has no sales or use tax exemption for a vehicle purchased by a disabled veteran. House Bill 5274, introduced November 12, 2025, would create one for veterans meeting the MCL 211.7b disabled-veteran definition, but it remains in the House Government Operations Committee and is not law.

Do disabled veterans get free state park entry and hunting or fishing licenses in Michigan?

A Michigan-registered vehicle with a valid resident Disabled Veteran, Ex-Prisoner of War, or Medal of Honor plate does not need the Recreation Passport for state park entry. Resident veterans the VA has determined to be permanently and totally disabled and entitled to benefits at the 100% rate, or rated individually unemployable, can obtain any resident hunting or fishing license for which a lottery is not required free of charge under MCL 324.43537. Proof of eligibility must be carried when obtaining licenses and while afield.