---
title: Michigan Military & Veteran Property Tax Exemptions (2026)
slug: michigan-veteran-property-tax-exemptions-2026
description: >-
  How Michigan fully exempts 100% disabled veterans from property tax, plus how
  it treats military pay. Connect with a VeteranPCS agent in Michigan today.
publishedAt: '2026-01-08T09:00:00.000Z'
updatedAt: '2026-06-22T00:00:00.000Z'
author: VeteranPCS
categories:
  - Financial Guidance
canonical: 'https://www.veteranpcs.com/blog/michigan-veteran-property-tax-exemptions-2026'
componentSlug: financial-guidance
stateSlug: michigan
---
# Michigan Military & Veteran Property Tax Exemptions (2026)

If you serve in the military or have served, Michigan offers one of the clearest property tax breaks in the country for fully disabled veterans, along with income tax rules that protect military pay. Michigan is home to Selfridge Air National Guard Base near Mount Clemens and the Detroit Arsenal in Warren, so it draws many military families after a PCS, which is short for Permanent Change of Station, the official military move from one duty station to another. This guide explains the main rules in plain language and points you to the state's own sources. Tax law changes, so treat these figures as a starting point and confirm the current rules before you file.

## How Michigan Helps Disabled Veterans With Property Taxes

Michigan gives a full property tax exemption to its most severely disabled veterans. The U.S. Department of Veterans Affairs, known as the VA, is the federal agency that rates service-connected disabilities, and the highest rating opens the door to this benefit.

Under Michigan law, set in MCL 211.7b, real property used and owned as a homestead by a qualifying disabled veteran is exempt from property taxes. As the [Michigan Department of Treasury explains](https://www.michigan.gov/taxes/property/exemptions/veterans/disabled-veterans-exemption), this is an all-or-nothing benefit: the property either qualifies for a 100 percent exemption or it does not qualify at all. There are no partial exemptions.

### Who Qualifies

A veteran can qualify in one of three ways. You may qualify if the VA has determined you are permanently and totally disabled as a result of military service and you are entitled to veterans' benefits at the 100 percent rate. You may also qualify if the VA has rated you as individually unemployable, or if you hold a VA certificate showing you have received pecuniary assistance for specially adapted housing. The veteran must have been discharged under honorable conditions and must own and occupy the home as a homestead.

### Surviving Spouses

The benefit can carry to a surviving spouse. The un-remarried surviving spouse of a disabled veteran who qualified, or who would have qualified, may keep the exemption on the homestead. The exemption continues as long as the spouse does not remarry and continues to own and occupy the home. Confirm the conditions with your local assessor.

## How It Works With Your Local Tax Bill

Property tax in Michigan is assessed and collected at the local level by your city or township. You claim the disabled veterans exemption by filing [Form 5107, the State Tax Commission Affidavit for Disabled Veterans Exemption](https://www.michigan.gov/taxes/property/property-tax-information-for-veterans-and-military-personnel), with the local assessor or the board of review, along with your VA documentation showing the qualifying rating.

One recent change makes the benefit easier to keep. Beginning January 1, 2025, once the exemption is granted it remains in effect without an annual reapplication. The exemption continues until the property owner rescinds it or the assessor determines the property no longer qualifies. If you are weighing where to settle, our guide to the [military bases in Michigan](/blog/what-military-bases-are-in-michigan) can help you picture the local cost of owning a home in each market.

## Military Pay and Michigan State Income Tax

Michigan has a flat individual income tax, and the rate for the 2026 tax year is 4.25 percent. The good news for military families is that the state shields service income broadly.

Military retirement pay is exempt from Michigan income tax and may be deducted to the extent it is included in your federal adjusted gross income. As the state's [guidance on military retirement benefits](https://www.michigan.gov/taxes/questions/iit/accordion/military/are-military-retirement-benefits-exempt-from-michigan-individual-income-tax) explains, compensation paid from federal appropriations for service in the armed forces, including retirement benefits, is exempt. Active-duty military pay is [also exempt from Michigan income tax](https://www.michigan.gov/taxes/questions/iit/accordion/military/is-military-pay-exempt-from-michigan-individual-income-tax). VA disability compensation is not part of your federal income, so Michigan does not tax it either. Between exempt active-duty pay, exempt retirement pay, and untaxed VA compensation, many military families owe little or no Michigan income tax on their service income. Rates and rules can change, so confirm the current details with the Department of Treasury before you file.

## A Note for Military Spouses: MSRRA

If you are a military spouse, the Military Spouse Residency Relief Act, known as MSRRA, may matter to you. MSRRA is a federal law that lets a military spouse keep a home state for tax and voting purposes even after moving on military orders. You do not automatically become a Michigan resident just because your service member got orders here.

Under the related federal rules, a service member, the spouse, or both may choose the service member's home state, the spouse's home state, or the service member's permanent duty station for residency. Because that choice affects both states' taxes, confirm yours before you file. For the property tax exemption in this guide, what usually matters most is that the qualifying veteran owns and lives in the home as the homestead.

## How to Apply and Where to Verify

You claim the disabled veterans exemption by filing Form 5107 with your local assessor or board of review, with your VA documentation showing the permanent and total rating at 100 percent, individual unemployability, or the specially adapted housing certificate. Because the rules and deadlines can vary by local unit, confirm the current details with your city or township assessor and the [Michigan Department of Treasury](https://www.michigan.gov/taxes/property/exemptions/veterans/disabled-veterans-exemption) before you file.

When you want a local read on a neighborhood and its tax rates, you can ask Shawn Flemmer, a VeteranPCS agent in the Rochester area near Selfridge Air National Guard Base, for current listings and a sense of local property taxes.

If a VA loan is part of your plan, which is a home loan backed by the U.S. Department of Veterans Affairs, learn [what the benefits of a VA loan are](/blog/what-are-the-benefits-of-a-va-loan), see [how a zero-down VA loan works](/blog/how-does-a-0-down-va-loan-work), read our [complete guide to buying your first home with a VA loan](/blog/complete-guide-to-buying-your-first-home-with-a-va-loan), and review the [2026 VA loan limits for military homebuyers](/blog/2026-va-loan-limits-explained-for-military-homebuyers). When you are ready, you can [connect with a VeteranPCS lender](https://www.veteranpcs.com/contact-lender) or [connect with our VeteranPCS network in Michigan](https://www.veteranpcs.com/michigan).

## Frequently Asked Questions

### Do disabled veterans pay property taxes in Michigan?

A veteran who the VA has determined is permanently and totally disabled at the 100 percent rate, who is individually unemployable, or who holds a specially adapted housing certificate, is exempt from property taxes on the homestead he or she owns and occupies. It is a full exemption, not a partial deduction, and there are no partial awards. Confirm your eligibility with your local assessor and the Michigan Department of Treasury.

### What disability rating do I need for the Michigan veteran exemption?

You generally need a VA determination of permanent and total disability with entitlement to benefits at the 100 percent rate. A rating of individual unemployability or a VA certificate for specially adapted housing also qualifies you under MCL 211.7b.

### Does Michigan tax military retirement pay?

No. Michigan exempts military retirement pay from state income tax, and it may be deducted to the extent it is included in your federal adjusted gross income. Active-duty military pay is also exempt, and VA disability compensation is not taxed.

### Do I have to reapply for the Michigan disabled veterans exemption every year?

Not anymore. Beginning January 1, 2025, once the exemption is granted it stays in effect without annual reapplication, until the owner rescinds it or the assessor determines the property no longer qualifies. Keep your records current with your local assessor.

### Can a surviving spouse claim the Michigan exemption?

Yes, in many cases. The un-remarried surviving spouse of a qualifying disabled veteran can keep the exemption on the homestead while unmarried and still owning and occupying the home. Confirm the conditions with your local assessor.

Property tax rules and dollar amounts change from year to year, and your situation may have details a general guide cannot cover. Please consult a tax professional or attorney before making decisions based on this exemption, and verify the current rules with your local assessor and the State of Michigan before you file.

_This content is for informational purposes. Consult a professional for personal financial decisions._