Michigan Veterans Benefits

Full exemption from all property taxes on a homestead owned and occupied by a qualifying disabled veteran (honorably discharged). Three ways to qualify: (1) VA-rated permanently and totally disabled at the 100% rate, (2) holds a VA certificate for specially adapted housing (SAH) pecuniary assistance, or (3) VA-rated individually unemployable (TDIU). No home-value cap and no income test. A surviving spouse who does not remarry may continue the exemption, including on a later-acquired homestead. Effective Jan 1, 2025 the exemption no longer requires annual reapplication — it stays in effect until rescinded by the owner or denied by the assessor.

A taxpayer, spouse, or dependent who is a 'qualified disabled veteran' (a veteran with any service-connected disability, honorable or general discharge) may claim an additional personal exemption on the Michigan return. Statute sets the amount at $250 per qualified disabled veteran. NOTE: many third-party guides cite $500; the verified statutory figure in MCL 206.30(3)(b) is $250, so $250 is reported here. No specific VA rating percentage is required — only a service-connected disability.

Military retirement pay for service in the U.S. Armed Forces (including Reserve and National Guard retirement) is fully exempt from Michigan individual income tax and is deducted on Schedule 1 to the extent included in adjusted gross income. No age or rating requirement.

VA service-connected disability compensation is not taxable income in Michigan (it is excluded from federal AGI, the Michigan tax base). No state tax is imposed on VA disability pay.

Undergraduate tuition grant for the natural or adopted child (age 16-26, Michigan resident 12 months) of a Michigan veteran who died or became totally and permanently disabled from a service-connected cause, or is MIA. Administered by MI Student Aid (Dept of Treasury). The award amount per year and lifetime cap are set annually; commonly cited figures (e.g., up to $2,800/year, $11,200 lifetime) come from program fact sheets — confirm the current-year amount with MI Student Aid before quoting.

Preference points added to state civil service exam/screening scores: 5 points for an eligible veteran (90+ days active duty, honorable discharge); 10 points for a veteran with a service-connected disability, a Purple Heart recipient, or an eligible surviving spouse; 5 points for the spouse of an active-duty member. Requires registration with the Michigan Civil Service Commission. Recent rule changes extend preference to promotional postings, pre-discharge applicants, and military retirees.

A 'totally disabled veteran' (honorably discharged, VA service-connected total or permanent total disability rating for compensation, optionally also receiving disability retirement pay) may obtain the special 'DV / disabled veteran' plate exempt from the registration tax (sec. 801) with no renewal service fee, plus a free disability tab where applicable. Veterans rated 50%-99% service-connected may obtain the DV plate but pay standard registration tax and fees.

Michigan resident veterans who are VA-determined permanently and totally disabled at the 100% rate, or VA-rated individually unemployable (TDIU), may obtain free of charge any resident hunting or fishing license that does not require a lottery/drawing application. Lottery licenses (e.g., bear, elk, drawing turkey tags) are not covered. VA documentation must be carried when obtaining licenses and afield.

100% disabled veterans, Medal of Honor recipients, and former POWs get free Recreation Passport vehicle entry to Michigan state parks, recreation areas, state forest campgrounds, boat launches, and trailheads. Eligibility is established by holding a valid Michigan Disabled Veteran, Medal of Honor, or Ex-POW license plate (apply/document via MVAA). A broader proposal to give all veterans free lifetime park access has been floated but is not the current confirmed rule.

State-operated skilled nursing / long-term care homes for honorably discharged veterans who are eligible for USDVA healthcare or financial assistance for long-term nursing care, plus eligible dependents (spouse/former spouse/surviving spouse or Gold Star parent). Three communities: Grand Rapids, Marquette, and Chesterfield Township. Michigan residency is NOT required. Apply via a home directly or a Veteran Service Officer / 1-800-MICH-VET.

Emergency grants to Michigan-resident veterans and dependents facing a temporary, unforeseen financial hardship a one-time grant can resolve (e.g., utilities, rent/mortgage, home repairs). General eligibility: honorable discharge plus 180 days active wartime service OR an authorized expeditionary medal; since Dec 2021, peacetime-era veterans 65+ with 180 days service and honorable discharge are also eligible. No fixed dollar amount — grants are case-by-case based on need. Apply through county veterans services or 1-800-MICH-VET.