What Property Tax Relief Is Available for Michigan Veterans?

Michigan offers property tax exemptions specifically for veterans who meet certain disability or income requirements. The primary program is the Disabled Veterans Property Tax Exemption, outlined under Michigan Compiled Law 211.7b. This exemption can partially or fully exempt your home from property taxes, depending on your level of service-connected disability.

There are two tiers of relief under this law. Veterans with a 100% total and permanent service-connected disability qualify for a full homestead exemption. Veterans with a lower disability rating (less than 100%) may qualify for a partial exemption based on income limits set by the state each year.

Michigan also has a Homestead Property Tax Credit (Michigan Schedule MI-1040CR) available to qualifying low-income residents, including veterans, which provides a credit on state income tax for property taxes paid.

Who Qualifies for the Michigan Disabled Veterans Property Tax Exemption?

Eligibility depends on a few key factors:

  • Disability rating: You must have a service-connected disability rated by the U.S. Department of Veterans Affairs.
  • Honorable discharge: You must have been honorably discharged from active military service.
  • Primary residence: The exemption applies only to your homestead the home you actually live in. It does not cover rental properties, second homes, or vacant land.
  • Un-remarried surviving spouse: If a qualifying veteran passes away, their un-remarried spouse may continue to receive the exemption on the same homestead.

For the full exemption (100% disabled veterans), there is no income test. For the partial exemption, your total household income must fall below the threshold set annually by the Michigan Department of Treasury. As of recent years, that limit has hovered around $7,500 to $9,000 in total household income, but it changes, so always confirm the current number with your local assessor or the Michigan Department of Treasury.

How Much Can a Veteran Save on Property Taxes in Michigan?

The savings vary widely based on your disability rating and where you live.

For a veteran rated at 100% disability, the exemption covers the entire taxable value of the homestead. That means your local property tax bill could drop to zero on your primary residence. In a city like Grand Rapids or Ann Arbor, where average annual property taxes can run $3,000 to $7,000 or more, this represents substantial savings.

For veterans with a partial disability rating and income under the threshold, the exemption amount is calculated based on your disability percentage relative to 100%. For example, if you have a 50% disability rating, you may be exempt from property taxes on roughly half your home's taxable value but the exact formula depends on the income guidelines published each year.

How Do You Apply for Michigan Veteran Property Tax Relief?

Applications are handled at the local level, through your city or township assessor. Here's the general process:

  1. Get your VA disability letter. This is the official document from the Department of Veterans Affairs showing your current disability rating. You can request it through VA.gov or your regional VA office.
  2. Obtain your DD-214. Your discharge paperwork showing honorable service. If you've lost it, you can request a replacement through the National Archives.
  3. Complete Form 5107 (Affidavit for Disabled Veterans). This is the Michigan-specific application form for the exemption.
  4. File with your local assessor. Submit the completed form along with your VA letter and DD-214 to your city or township assessor's office. The deadline is typically tied to your local Board of Review meeting schedule.

Important: You must apply before the local Board of Review closes its March session, though some boards allow late filings for hardship. Don't wait until the last minute start gathering documents in January or February.

When Should You Apply and How Often?

You only need to apply once for the exemption. Once approved, it rolls forward automatically each year as long as you remain eligible and continue living in the same homestead.

However, if you move to a new home in Michigan, you'll need to file a new application with the assessor in your new municipality. If your disability rating changes, you should notify your assessor, because a higher rating could increase your exemption.

The exemption takes effect on the December 1 tax roll for the year you apply. So if you file and get approved in March 2025, the exemption applies to your December 1, 2025, tax bill.

What Are Common Mistakes Veterans Make With This Program?

Several avoidable errors delay or derail applications:

  • Not applying because you assume you won't qualify. Many veterans with partial ratings don't realize they may be eligible for at least some relief. Always check the current income threshold.
  • Filing with the wrong office. The exemption goes through your local assessor, not the VA or the state. Each city and township has its own assessor or assessing department.
  • Missing the Board of Review deadline. The March Board of Review is the primary window. If you miss it, you may lose relief for that entire year.
  • Forgetting to re-file after moving. The exemption does not transfer automatically between properties. You need a new application at your new address.
  • Not updating your VA rating. If your condition worsens and your rating increases, you could qualify for a higher exemption. But you have to tell your assessor.

Can a Surviving Spouse Keep the Exemption?

Yes. Under Michigan law, an un-remarried surviving spouse of a qualifying veteran can continue to receive the exemption on the same homestead. If the spouse remarries, the exemption ends. This is one of the more generous provisions in the state's veteran tax relief framework, and many surviving spouses are unaware they can claim it.

How Does Michigan Compare to Other States?

Michigan's program is solid but not the most expansive in the country. Some states offer property tax relief with lower disability thresholds or broader eligibility. For example, California's veteran property tax exemption operates on a different structure with its own income and disability criteria.

If you're a veteran considering relocation or exploring options in other states, it may be worth looking at programs like Kentucky's veteran housing initiatives or Oregon's veteran housing voucher programs to compare benefits.

Are There Other Housing and Tax Benefits Michigan Veterans Should Know About?

Beyond the property tax exemption, Michigan veterans may benefit from:

  • Michigan Veterans Trust Fund: Provides emergency financial assistance for eligible veterans.
  • Property tax freeze for seniors and disabled residents: Some local jurisdictions offer additional freezes that may stack with the veteran exemption.
  • Homestead Property Tax Credit: Available through your Michigan income tax return if your income is below certain thresholds.
  • Federal VA housing grants: Programs like Specially Adapted Housing (SAH) grants for veterans with severe disabilities who need home modifications.

Michigan veterans looking for broader housing support should also check resources for local veteran housing coordinators in their area. If you're in a northern state dealing with seasonal costs, Maine's approach to veteran heating assistance may also offer ideas for navigating winter expenses.

Where Do You Go for Help Filing?

Start with these contacts:

  • Your local city or township assessor's office they handle the application and can answer questions about your specific property.
  • Your county's Department of Veterans Affairs office many counties have veteran service counselors who help with paperwork.
  • Michigan Veterans Affairs Agency (MVAA) call 1-800-MICH-VET (1-800-642-4838) for statewide guidance.
  • A veterans service organization (VSO) groups like the American Legion, VFW, or DAV often have service officers trained to help with state-level benefit applications.

Quick Checklist: Applying for Michigan Veteran Property Tax Relief

  • Confirm your VA disability rating is current
  • Locate or request your DD-214
  • Download Michigan Form 5107
  • Verify the current income threshold (if applying for partial exemption)
  • Contact your local assessor for filing instructions and deadlines
  • Submit your application before the March Board of Review session
  • Keep copies of everything you file
  • If you move, repeat the process at your new municipality
  • Update your application if your VA disability rating changes

The best time to start is now. Even if the March Board of Review has already passed, contact your assessor some boards accept late applications under hardship provisions, and getting your documents in order early means you'll be ready for the next filing window.