State benefits

Michigan veteran benefits: the board stopped deciding them in 2023

Michigan exempts a principal residence from property tax for a qualifying disabled veteran, and the property either qualifies in full or does not qualify at all. There is no partial exemption at any rating band. The affidavit goes to the assessing officer for the local assessing unit, at any point between January 1 and December 31.

Michigan Veterans Affairs Agency

https://www.michigan.gov/mvaa/quality-of-life/quality-of-life/state-of-michigan-veteran-benefits

Published 2026-08-21. Michigan rules last checked against that state's own government sources on 2026-08-21. Every line below carries the page it came from and the date it was read.

What is different about Michigan

Michigan used to be decided by a board rather than by an official, and almost everything published about it still says so. Two acts passed on the same day in 2023 rebuilt the process. 2023 Public Act 150 amended MCL 211.7b with immediate effect on 19 October 2023, so the application now goes to the assessing officer for the local assessing unit at any point after January 1 and before December 31 of the year claimed; the board of review has gone from the text, and with it the rule that there could be only one decision on a property in a calendar year. 2023 Public Act 151 added MCL 211.7c, which makes an exemption granted as to taxes levied on or after January 1, 2025 stand without reapplication until the veteran rescinds it or the assessor denies it, with a 45 day duty to rescind, an audit no more than once every three years, and a 35 day appeal to the residential and small claims division of the Tax Tribunal. What survives from before is the part that makes Michigan unusual: the exemption is all or nothing by design, the property qualifies in full or not at all, which makes the wording of the three qualifying categories the whole game.

Two acts in one day replaced the board, and then replaced the annual filing

Michigan's exemption is all or nothing, and until recently it was also decided by a committee rather than by an official. That changed. MCL 211.7b was amended by 2023 Public Act 150, immediately effective 19 October 2023, and the current text provides that to obtain the exemption an individual, or the individual's legal designee, must file an application in a form and manner prescribed by the state tax commission with the assessing officer for the local assessing unit, after January 1 and before December 31 of the calendar year for which the exemption is claimed. The board of review is not mentioned in the section at all any more.

That matters because the old rule was genuinely punishing and is still widely republished. Under it the affidavit went to a local board of review, the board sat on a fixed schedule, and there could be only one board decision on a property in a calendar year, so a refusal in March was a refusal for the year. The current statute has no such bottleneck: the filing window is the whole calendar year and the decision belongs to the assessing officer. Any page still describing a Michigan veteran as having one shot a year at a board is describing law repealed in 2023.

A second act passed the same day finished the job, and it is the half that is missed even by pages that noticed the first. 2023 Public Act 151 added MCL 211.7c, which provides that an exemption granted as to taxes levied on or after January 1, 2025 remains in effect, without subsequent reapplication, until it is rescinded by the individual who was granted it or is denied by the assessor. So Michigan is no longer an annual filing at all. What replaced the annual filing is a duty running the other way: a form rescinding the exemption has to be filed with the local assessing unit within 45 days of the individual ceasing to use and own the property as a homestead, or ceasing to meet the qualifications.

The same section sets the terms on which it can be taken away, and they are worth knowing before a letter arrives. Each local assessing unit runs an audit program, and a property is not audited more than once every three years unless there is a reasonable belief that it is ineligible. A denial, of a new claim or of an existing one after an audit, is appealable to the residential and small claims division of the Michigan Tax Tribunal within 35 days after the date of the notice. The assessor may deny a claim for the current year and the three immediately preceding calendar years, and taxes recovered that way carry interest at 1 percent a month.

The exemption itself is binary. The property either qualifies for a full exemption or it does not qualify, and Michigan grants nothing partial at lower bands. So everything turns on whether the veteran falls inside one of the three qualifying categories in MCL 211.7b(4)(a), and any one of them is enough: a VA determination of permanent and total disability resulting from military service with entitlement to veterans' benefits at the 100 percent rate; a VA certificate that the veteran is receiving or has received pecuniary assistance due to disability for specially adapted housing; or a VA rating of individually unemployable.

Two other Michigan entitlements are keyed to documents rather than to ratings, and that is easy to miss. Free hunting and fishing licenses are keyed to a VA determination of permanent and total disability at the 100 percent rate for a disability other than blindness, or to a VA rating of individually unemployable. The Recreation Passport exemption is keyed to the disabled veteran plate itself: a veteran without the plate designation does not get it, whatever the rating says.

The whole bill, a permanent plate, and the licenses

The property exemption removes the principal residence from the roll, so the worth is the whole bill. In Michigan that is taxable value multiplied by the local millage, and taxable value is capped year to year separately from market value, so the number tracks the assessment notice rather than what the house would sell for.

The plate is two different things depending on the tier. A totally disabled veteran gets a permanent, non expiring plate with no registration fees. A veteran rated 50 to 90 percent gets a standard disabled veteran plate that expires on the applicant's birthday and to which regular registration fees apply. Only one disabled veteran plate may be held by an applicant. The state veterans agency describes a one time $5 administrative fee when the plate is first issued, and that figure appears on that page only while the statute prohibits a service fee, so it is worth asking at the counter rather than assuming either way.

The free licenses are the largest recurring recreational line Michigan has. Michigan requires a base license of every hunter at $11 for a resident, and the kind of game licenses sit on top of it: deer $20, deer combination $40, antlerless deer $20, turkey $15, waterfowl $12, fur harvester $15. A resident annual all species fishing license is $26, and the resident hunt and fish combination is $76. Bear and elk are excluded because they require a separate application.

The Recreation Passport exemption is worth $15 a year per vehicle, or $29 for two years, and it does not reach camping, lodging, harbor reservation or shelter rental fees, which the department states explicitly.

The Children of Veterans Tuition Grant is up to $2,800 an academic year for a full time student, with a lifetime cap of four academic years counted as eight semesters, or $11,200, or age 26, whichever comes first. Military retirement pay is deducted in full from Michigan taxable income, and the state revenue bulletin confirms it is not subject to the age tiers or phase in limits that apply to private retirement income.

Every Michigan entitlement checked so far

Each entry states the rule as the statute or the administering agency states it, with the rating threshold that rule uses. Whether any particular file meets a threshold is a question for the office that grants it.

The state's own page

Everything below is a reading of published Michigan rules. Michigan Veterans Affairs Agency is the office that administers them, and its own page is the place to check anything here.

https://www.michigan.gov/mvaa/quality-of-life/quality-of-life/state-of-michigan-veteran-benefits

The ones with a filing window

Disabled Veterans ExemptionAfter January 1 and before December 31 of the calendar year for which the exemption is claimed
Children of Veterans Tuition GrantJune 30, 2027 for the 2026 to 2027 award year

Filing windows are set by the office that administers each one, and several of them run on the county assessment calendar rather than the tax year.

Property tax

Disabled Veterans Exemption

Has to be applied for once

Michigan exempts from property tax real property owned and occupied as a principal residence by a qualifying disabled veteran or the unremarried surviving spouse of one.

MCL 211.7b(4)(a) names three qualifying categories, any one of which is enough: a VA determination of permanent and total disability resulting from military service with entitlement to veterans' benefits at the 100 percent rate; a VA certificate that the veteran is receiving or has received pecuniary assistance due to disability for specially adapted housing; or a VA rating of individually unemployable.
The property either qualifies in full or does not qualify. Michigan grants no partial exemption at any band.
The one-decision-per-calendar-year board of review rule was repealed by 2023 Public Act 150 and is still widely republished. The filing window is now the whole calendar year and the decision belongs to the assessing officer.
IT IS NO LONGER AN ANNUAL FILING EITHER. An exemption granted as to taxes levied on or after January 1, 2025 remains in effect without subsequent reapplication until the individual rescinds it or the assessor denies it, under MCL 211.7c as added by 2023 Public Act 151.
The duty that replaced the annual filing runs the other way. A rescission form has to be filed with the local assessing unit within 45 days after the individual stops using and owning the property as a homestead, or stops meeting the qualifications.
Each local assessing unit runs an audit program. A property is not audited more than once every three years unless there is a reasonable belief it is ineligible.
A denial, whether of a new claim or of an existing one after an audit, is appealable to the residential and small claims division of the Michigan Tax Tribunal within 35 days of the notice. The assessor may deny a claim for the current year and the three immediately preceding calendar years, and recovered taxes carry interest at 1 percent a month.
Where the property is used and owned as a homestead for part of the year only, the exemption is prorated, by the closing documents where they are provided and otherwise on a daily basis by the local treasurer.

What it is worth: The whole property tax bill on the principal residence The property leaves the tax roll, so the annual worth is the bill that would otherwise be issued. In Michigan that is taxable value multiplied by the local millage, and taxable value is capped year to year separately from market value, so the figure tracks the assessment notice rather than what the house would sell for.
Filing window: After January 1 and before December 31 of the calendar year for which the exemption is claimed
Administered by: The assessing officer for the local assessing unit
How it is claimed: Form 5107, the State Tax Commission affidavit for the disabled veterans exemption, filed once with the assessor of the city or township where the property is, with the VA documentation attached. For levies on or after January 1, 2025 it is not refiled in later years.
Rule: MCL 211.7b as amended by 2023 PA 150, eff. October 19, 2023, with MCL 211.7c added by 2023 PA 151 for the continuation, audit and denial rules

MCL 211.7b, exemption of real property used and owned as homestead by disabled veteran or surviving spouse (Michigan Legislature). Checked 2026-08-21.

Vehicles and plates

Disabled veteran plate, in two tiers

Has to be applied for once

Michigan issues a disabled veteran plate in two tiers. The permanent plate goes to a totally disabled veteran and carries no registration fee. The standard plate goes to a veteran rated 50 to 90 percent and regular registration fees apply to it.

The permanent tier requires a VA rating decision or summary of benefits letter showing a 100 percent combined rating, or a rating under 100 percent with a 100 percent unemployable rating. Former prisoners of war qualify regardless of rating.
Only one disabled veteran plate may be held by an applicant. Plates on additional vehicles are not permitted unless a co-owner qualifies separately.
The vehicle must be a noncommercial passenger vehicle, pickup or van titled or leased in the applicant's name. Motorcycles and motor homes are excluded.
The state veterans agency describes a one time $5 administrative fee when the plate is first issued. That figure appears on that page only, and the statute prohibits a service fee, so it is worth confirming at the counter.
A surviving spouse may use and renew the plate where the veteran's rating was not less than 50 percent.

Disabled veteran plate, in two tiers, amount at each rating band
Rating band	Amount
50 to 60 percent	Standard plate, regular registration fees apply
70 to 90 percent	Standard plate, regular registration fees apply
100 percent	Permanent plate, no registration fees

Administered by: Michigan Department of State
How it is claimed: Form BDVR-87, by post to the Department of State or at any branch office, with the discharge papers and the VA letter.
Rule: MCL 257.803f

MCL 257.803f, disabled veteran registration plates (Michigan Legislature). Checked 2026-08-21.

Licenses and parks

Free hunting and fishing licenses

Has to be claimed again each year

Michigan provides that a disabled veteran is eligible to obtain any resident license under the wildlife part for which a lottery is not required, free of charge.

The statute defines a disabled veteran here as a resident determined by VA to be permanently and totally disabled as a result of military service and entitled to benefits at the 100 percent rate, for a disability other than blindness, or a resident rated by VA as individually unemployable.
Licenses requiring a separate application or a drawing, such as bear and elk, are excluded.
The VA documentation has to be in the veteran's possession when obtaining licenses and while afield.

What it is worth: About $130 a year for a hunter who also fishes Michigan requires a base license of every hunter at $11 for a resident, and kind of game licenses sit on top of it: deer $20, deer combination $40, antlerless deer $20, turkey $15, waterfowl $12, fur harvester $15. A resident annual all species fishing license is $26. The resident hunt and fish combination, which is the base license plus two deer plus all species fishing, is $76.
Administered by: Michigan Department of Natural Resources
How it is claimed: At a license agent, with the VA documentation.
Rule: MCL 324.43537

MCL 324.43537, licenses for disabled veterans (Michigan Legislature). Checked 2026-08-21.

Recreation Passport exemption

Applies without a filing

Michigan exempts a vehicle registered with a disabled veteran plate from the Recreation Passport requirement. The exemption attaches to the plate rather than to a separately certified rating.

The plate is the qualifying document. A veteran without the plate designation does not get the exemption, which is stated plainly by the state veterans agency.
The Recreation Passport is separate from camping, lodging, harbour reservation and shelter rental fees, and the exemption does not reach any of those.

What it is worth: $15 a year per vehicle A resident annual Recreation Passport is $15 per Michigan registered vehicle when bought at plate renewal, $29 for two years, and $7 for a motorcycle or moped. A $5 convenience fee applies when it is bought outside plate renewal. The fee rose by $1 on January 1, 2026 under statutory indexing.
Administered by: Michigan Department of Natural Resources
How it is claimed: Nothing to file. The plate itself carries the exemption.
Rule: MCL 324.74116(4)(c)

MCL 324.74116, recreation passport (Michigan Legislature). Checked 2026-08-21.

Education

Children of Veterans Tuition Grant

Has to be claimed again each year

Michigan provides undergraduate tuition assistance to the natural or adopted child of a qualified Michigan veteran who died while serving, died or became totally and permanently disabled from a service connected illness or injury as VA determined it, was totally and permanently disabled from a service connected cause before death, or is listed as missing in action.

The child must be older than 16 and less than 26, and must have been a continuous Michigan resident for the twelve months immediately before applying.
Enrolment at least half time at a participating Michigan institution, a cumulative grade point average of at least 2.25, an annual federal student aid application, and no default on a federal student loan.
The veteran must have been a Michigan legal resident immediately before entering service and not later resident outside Michigan for more than two years, or have established Michigan residency after entering service.

What it is worth: Up to $2,800 a year, capped at $11,200 in total Full time is up to $2,800 an academic year, or $1,400 a semester. Three quarter time is up to $2,100 and half time up to $1,400. The lifetime cap is four academic years counted as eight semesters, or $11,200, or age 26, whichever comes first.
Filing window: June 30, 2027 for the 2026 to 2027 award year
Administered by: The Michigan student aid authority
How it is claimed: Through the state student aid portal, with the child's birth certificate naming the veteran, the veteran's discharge papers, and proof of the total and permanent disability or the death.
Rule: MCL 390.1341 and following, Public Act 248 of 2005

MCL 390.1344, children of veterans tuition grant eligibility (Michigan Legislature). Checked 2026-08-21.

State income tax

Military retirement exemption

Applies without a filing

Michigan directs taxpayers to deduct compensation, including retirement or pension benefits, received for services in the armed forces of the United States, to the extent included in adjusted gross income.

The state revenue bulletin confirms the military deduction is not subject to the age tiers or the phase in limits that apply to private retirement income, and works an example deducting a full $40,000 military pension.
Only the participant, or on death or disability the surviving spouse, may claim it.
A civilian pension from the military is treated differently and is claimed on the pension form instead.

Administered by: Michigan Department of Treasury
How it is claimed: Deducted on Schedule 1 to the extent included in adjusted gross income. The benefits still have to be reported on Schedule W even where no Michigan tax was withheld.
Rule: MCL 206.30(1)(e)(i)

MCL 206.30, taxable income definitions (Michigan Legislature). Checked 2026-08-21.

Filter this by rating band

The finder takes a rating band and lists only the Michigan entitlements whose published threshold that band reaches, with a version laid out for printing and carrying to a county office.

Open the finder with Michigan already selected

Questions

Is there a partial Michigan exemption at 70 percent?

No. The property either qualifies for a full exemption or it does not qualify. Michigan grants no partial exemption at any band.

Does a board of review still decide the Michigan exemption?

No. 2023 Public Act 150 amended MCL 211.7b so the application is filed with the assessing officer for the local assessing unit, at any time after January 1 and before December 31 of the year claimed. The one-decision-per-year board bottleneck that older guidance describes is gone.

Does the Michigan exemption have to be filed every year?

Not since the 2025 levy. MCL 211.7c, added by 2023 Public Act 151, provides that an exemption granted as to taxes levied on or after January 1, 2025 remains in effect without subsequent reapplication until the individual rescinds it or the assessor denies it. A rescission form is due within 45 days of the property ceasing to be used and owned as a homestead, or of the individual ceasing to qualify.

What happens if the assessor denies the Michigan exemption?

MCL 211.7c requires the assessor to give notice of the denial and the reason, and the denial may be appealed to the residential and small claims division of the Michigan Tax Tribunal within 35 days after the date of the notice. A denial may reach the current year and the three immediately preceding calendar years, with interest at 1 percent a month on recovered taxes.

Do the free hunting and fishing licenses cover bear and elk?

No. The statute covers any resident license for which a lottery is not required, so licenses needing a separate application or a drawing, including bear and elk, are excluded.

Does the disabled veteran plate cover more than one vehicle?

No. Only one disabled veteran plate may be held by an applicant, and plates on additional vehicles are not permitted unless a co-owner qualifies separately.

Sources

Disabled veterans exemption information, retrieved 2026-08-21 (Michigan Department of Treasury, State Tax Commission)
MCL 211.7b, disabled veterans exemption, as amended by 2023 PA 150, retrieved 2026-08-21 (Michigan Legislature)
MCL 211.7c, continuation, rescission and denial of the exemption, added by 2023 PA 151, retrieved 2026-08-21 (Michigan Legislature)
MCL 257.803f, disabled veteran registration plates, retrieved 2026-08-21 (Michigan Legislature)
MCL 324.43537, licenses for disabled veterans, retrieved 2026-08-21 (Michigan Legislature)
MCL 324.74116, recreation passport, retrieved 2026-08-21 (Michigan Legislature)
Recreation passport, retrieved 2026-08-21 (Michigan Department of Natural Resources)
MCL 390.1344, children of veterans tuition grant, retrieved 2026-08-21 (Michigan Legislature)
MCL 206.30, taxable income definitions, retrieved 2026-08-21 (Michigan Legislature)

Accuracy owner Brayden Marley. State entitlement thresholds move on state fiscal calendars, so this page is re-read against its sources every quarter and the date beside each line is the date that line was last read.