What Michigan offers veterans on top of federal VA benefits — property tax relief, state income-tax treatment of retirement pay, and education programs. Compiled from official state sources.
Property tax exemption
Under Public Act 161 of 2013 (MCL 211.7b), Michigan gives a full homestead property-tax exemption to veterans the VA rates 100% permanently and totally disabled, rates individually unemployable, or has certified for specially adapted housing assistance. The exemption extends to an unremarried surviving spouse, and veterans apply with Form 5107 through their local assessing office.
Military retirement pay & state income tax
Michigan does not tax military retirement pay: retirement benefits for U.S. armed forces service are exempt from Michigan individual income tax and are subtracted from federal AGI on the state return.
Education benefits
The Children of Veterans Tuition Grant provides up to $2,800 per academic year in undergraduate tuition assistance for Michigan students aged 16 to 26 whose parent died, became totally and permanently disabled, or went missing in action as a result of military service.
Also worth knowing
The Michigan Veterans Trust Fund provides one-time emergency grants (rent or mortgage, utilities, home and auto repairs) to eligible wartime-era veterans, and since 2021 to peacetime-era veterans 65 and older.
About this information: Compiled July 2026 from official state sources and verified references. Benefit rules change through legislation — always confirm details with Michigan Veterans Affairs Agency or a Veteran Service Officer before making decisions. This is general information, not legal or financial advice.
Updated August 18, 2026
More stories
Recent coverage curated from local and regional sources.