VA Rating CalculatorSeptember 30, 2026 · 10 min read · DisableVet
Michigan Disabled Veteran Benefits: A Complete Guide to What You’ve Earned
If you are a disabled veteran living in Michigan, there is a real stack of state benefits waiting for you — and most of it is underused because the programs sit across different agencies. The good news: you do not have to be rated 100% to get meaningful help. Michigan spreads its support across every disability level, from property taxes to license plates to education for your kids.
This guide walks you through each benefit, who qualifies, and exactly how to apply. Think of it as a checklist. Grab your VA letter, DD-214, and a few minutes, and you can knock out several of these before your day is done.
Michigan’s Disabled Veterans Property Tax Exemption (MCL 211.7b)
The single most valuable benefit is the property tax exemption under MCL 211.7b. If you qualify, Michigan completely removes the property tax on your home — not a discount, not a partial break. A 100% exemption on the principal residence you own and live in.
There is no income limit and no cap on the value of the home. If your home is your homestead and you qualify, you owe no property tax on it.
Who qualifies?
You qualify if you are a Michigan resident, were honorably discharged, and meet one of these three VA conditions:
Permanently and totally disabled at the 100% rate due to military service.
Receiving (or have received) financial assistance for specially adapted housing through the VA’s SAH or SHA grant programs.
Rated individually unemployable (what you may hear called TDIU)
That third point matters more than most veterans realize. You do not need a literal 100% combined rating. If the VA has rated you unemployable because of your service-connected conditions, you can still get the full property tax break.
Surviving spouses keep it
The exemption continues for the unremarried surviving spouse of a qualifying disabled veteran. It applies to any homestead the spouse owns and lives in — even one bought after the veteran’s death — as long as the spouse does not remarry.
How to apply: File Form 5107 (the State Tax Commission Affidavit for Disabled Veterans Exemption) with the assessor in the city or township where your home sits. You do not file with the state or the county — it goes to your local assessing office. The filing window is after January 1 and before December 31 of the year you want the exemption.
Good news on renewal: Once granted, the exemption stays in force without an annual reapplication. It only ends if you ask to rescind it or the assessor denies it. Your VA award letter is the proof you need — a letter from a county office is not enough, so bring the actual VA determination.
Michigan Disabled Veteran License Plates (MCL 257.803f)
Michigan runs a two-tier disabled veteran plate system, driven by your rating. Both are governed by MCL 257.803f.
Tier 1 — Permanent Disabled Veteran plate (100% P&T or TDIU)
If the VA has given you a total or permanent-total disability rating (including unemployability rated at 100%), you get the permanent Disabled Veteran plate. It:
Does not expire — no renewal tabs, no reseating every few years.
Is exempt from the registration tax — no registration fee for that vehicle.
Is issued to one private passenger vehicle you own or lease.
Can be accessed by your surviving spouse after your death when the title transfers.
Tier 2 — Standard Disabled Veteran plate (50%–90%)
Veterans with a service-connected rating of 50% to 90% qualify, but this is the standard plate: it expires on your birthday and full registration fees still apply. Getting the plate is still worthwhile for recognition and the perks tied to a DV plate.
| Plate type | Disability rating | Registration fee | Expiration |
|---|---|---|---|
| Permanent Disabled Veteran | 100% P&T or TDIU | None (exempt) | Does not expire |
| Standard Disabled Veteran | 50%–90% | Standard fee applies | On your birthday |
One catch to know: a Disabled Veteran plate is not automatically a disability parking plate. To park in accessible spaces, you still need a separate disability parking tab or placard (apply with the MV-110 form).
How to apply: Complete the Application for Veteran License Plate (BDVR-87) at any Secretary of State office. Bring your discharge papers and your VA Rating Decision or Summary of Benefits letter showing the qualifying rating.
Michigan Income Tax: Military Pay & the Disabled Veteran Exemption
Michigan does not tax several categories of military income, which keeps more money in your pocket on April 15.
What is exempt?
Military retirement pay received for armed forces service is exempt from Michigan individual income tax.
VA disability compensation is tax-free everywhere, including Michigan, as a general rule.
Active-duty pay, military disability retirement pay, and Survivor Benefit Plan annuities are also excluded from Michigan taxable income.
Disabled veteran personal exemption
Michigan also provides an additional personal exemption on your state income tax for veterans determined disabled. It is a modest but real extra deduction on top of your standard exemption, so make sure you claim it when you file.
These income-tax breaks stack with the federal treatment and with your property tax exemption, so a disabled veteran retiring to Michigan can see meaningful combined savings.
Education Benefits: Children of Veterans Tuition Grant
Michigan’s key state education program for military dependents is the Children of Veterans Tuition Grant (CVTG), run by the Michigan Student Aid program.
It provides undergraduate tuition assistance to the natural or adopted child of a qualified Michigan veteran who either:
Died due to a service-connected illness or injury,
Became totally and permanently disabled due to a service-connected illness or injury, or
Is missing in action (MIA).
What you get
| Enrollment | Maximum award |
|---|---|
| Full-time | Up to $2,800 per academic year ($1,400 per semester) |
| Three-quarter time | Up to $2,100 per academic year ($1,050 per semester) |
The child must hold a high school diploma (or equivalent) and be of college age to receive the funds. It is a grant — not a loan — so it does not need to be repaid, and it can be combined with federal aid like the Post-9/11 GI Bill or Chapter 35 DEA benefits where eligible.
How to apply: Apply through the Michigan Student Aid program (michigan.gov/mistudentaid) during the financial-aid cycle. Check the program page for eligibility age limits and required documentation of the veteran’s status.
Recreation: State Parks & Free Hunting and Fishing Licenses
If you enjoy the outdoors, Michigan rewards qualifying disabled veterans handsomely.
Free state park entry
Vehicles displaying a Disabled Veteran, Medal of Honor, or Ex-Prisoner of War license plate get free entry to Michigan state parks and recreation areas without buying the annual Recreation Passport. The plate itself is the pass.
Free hunting and fishing licenses
Veterans the VA has deemed totally and permanently disabled (100% P&T) or rated individually unemployable can get resident hunting and fishing licenses free of charge.
Two limits to keep straight:
It covers any resident license that does not require a lottery or drawing — so base licenses, antlerless deer, and similar tags are covered.
Lottery-drawn tags (such as bear or elk) and any required federal stamps (like the federal duck stamp) are not included.
How to apply: Bring your VA documentation of your 100% P&T or TDIU rating to a DNR license agent, or apply through the Michigan DNR e-License system. Carry proof of eligibility with you when you hunt or fish.
Employment Preference in State Jobs
Michigan and its counties and municipalities are required to give veterans preference in public hiring under state law. A physical impairment that does not actually prevent you from doing the job cannot disqualify you.
For state classified civil-service positions, there is a specific Veterans’ Preference program that requires you to register first. It covers not only veterans but also:
The spouse of a veteran with a service-connected disability rating above 50%, and
Surviving spouses of veterans.
Once registered, the preference applies to both hiring and later promotion within the classified service. It is not a guarantee of a job — it is a leg up in the competitive process — so you still apply and compete, but you get preference consideration.
One detail to note: separate rules mean your military experience counts as relevant experience toward your state salary, so your time in service should be reflected in your pay grade.
How to apply: Register for Veterans’ Preference through the Michigan Civil Service Commission on the state’s job openings site (jobs.mitalent.org), attaching your DD-214 (and VA rating letter if claiming as a disabled veteran).
Emergency Help: The Michigan Veterans Trust Fund
If a temporary emergency threatens to push your finances over the edge, the Michigan Veterans Trust Fund provides emergency grants to veterans (and, in some programs, surviving spouses). These grants are intended for an unforeseen situation causing a short-term financial hardship — such as help with basic living expenses during a rough patch.
It is a safety net worth knowing exists. Eligible veterans and, in cases like the 65-and-over peacetime program, surviving spouses can apply through their county veterans affairs office or the Michigan Veterans Affairs Agency (MVAA).
Putting It All Together: Your Michigan Checklist
Here is the shortest route to collecting what you’ve earned:
Get your VA documents in hand. Your Rating Decision / Summary of Benefits letter and your DD-214 open every door on this list.
File Form 5107 with your local assessor for the property tax exemption if you qualify at 100% P&T or TDIU.
Apply for your Disabled Veteran plate at the Secretary of State with BDVR-87 — and the MV-110 if you need the disability parking tab.
Claim the disabled veteran personal exemption on your Michigan income tax return, and confirm your military retirement pay is excluded.
If you have eligible children, apply for the Children of Veterans Tuition Grant through Michigan Student Aid.
Register for Veterans’ Preference with the Civil Service Commission if you want to compete for state jobs.
Use your DV plate for free state parks and pick up your free hunting and fishing licenses with your VA rating proof.
You do not need a lawyer for most of these, but your county veterans affairs office and the Michigan Veterans Affairs Agency can walk you through any step free of charge. Start with the property tax exemption — it is usually the biggest dollar figure, and applying early in the year gives you the longest runway to get it correct.
You carried the service-connected burden. Michigan built these benefits to lighten it. Take the time to claim every one that applies to you.
Frequently Asked Questions
Do I need a 100% rating to get the Michigan property tax exemption?
Not necessarily. You qualify with a 100% permanent-and-total rating, an individually unemployable (TDIU) rating, or if you receive specially adapted housing assistance. Many veterans with a lower raw rating qualify through TDIU.
Is military retirement pay taxed by Michigan?
No. Military retirement pay received for armed forces service is exempt from Michigan individual income tax, and VA disability compensation is tax-free as well.
Can a 50% disabled veteran get a Disabled Veteran plate?
Yes. Veterans rated 50% to 90% qualify for the standard Disabled Veteran plate (full registration fees apply). Only the 100% P&T / TDIU tier gets the permanent, fee-exempt plate.
Does my family benefit if I’m 100% disabled?
Yes. Your unremarried surviving spouse can continue the property tax exemption and the disabled veteran plate, and your children may be eligible for the Children of Veterans Tuition Grant.