Michigan Disabled Veteran Property Tax Exemption (2026)

Michigan's disabled veteran property tax exemption can wipe out the entire property-tax bill on a qualifying veteran's home, with no income limit and no cap on the home's value. It's a benefit written into state law, separate from the federal VA benefits you may already receive. This guide walks through exactly who qualifies, what it's worth, what happens to a surviving spouse, and how to file.1

In This Guide

• Key Takeaways
• Do You Qualify for Michigan's Disabled Veteran Property Tax Exemption?
• How Much Does the Michigan Veteran Homestead Exemption Save You?
• What Happens to a Surviving Spouse?
• How to Apply for the Exemption
• How the Disabled Veteran Property Tax Exemption Works With Your Michigan VA Benefits
• Frequently Asked Questions
• Learn More

As of 2025, Michigan is home to roughly 435,500 veterans, and many of them, along with their surviving spouses, are paying a property-tax bill they no longer owe.2 The disabled veteran property tax exemption is one of the most valuable benefits Michigan offers, yet it's easy to miss because it isn't automatic. You have to claim it. Here's how it works, one piece at a time.

Do You Qualify for Michigan's Disabled Veteran Property Tax Exemption?

The exemption is set out in MCL 211.7b, part of Michigan's General Property Tax Act. To claim it, you need to be a Michigan resident, you need to own and live in the home as your homestead, and you need to have been discharged from the U.S. armed forces under honorable conditions.1

Beyond those basics, you have to meet one of three disability tests, each tied to a determination the U.S. Department of Veterans Affairs has already made about your service-connected disability. You only need one of the three; you don't have to satisfy all of them.1

The individual-unemployability path is worth calling out. A veteran can be rated individually unemployable (often written as "IU" or "TDIU") without carrying a formal 100% schedular rating, and that veteran still qualifies for the full Michigan exemption.1 If you're not sure which category the VA has placed you in, your VA award letter or your county Veteran Service Officer can tell you.

One point of confusion worth clearing up: this is the exemption for service-connected disabled veterans. It is not the same as Michigan's separate property-tax relief for older or lower-income homeowners. If you're looking into age- or income-based help instead, see our guide to senior property tax relief in Michigan. This page is about the disabled-veteran benefit specifically.

How Much Does the Michigan Veteran Homestead Exemption Save You?

If you qualify, the exemption is total. Your homestead is fully exempt from the collection of property taxes under the General Property Tax Act.1

Some states grant a partial break, knocking a fixed dollar amount or a percentage off the taxable value. Michigan doesn't work that way for this benefit. There's no partial-percentage version and no ceiling: the homestead is entirely exempt if the veteran qualifies, whether the home is modest or expensive, and regardless of the veteran's income or the property's value.1 In practice, that means the annual property-tax bill on your primary home drops to zero for as long as you remain eligible.

Because there's no income or asset test, you don't have to weigh whether claiming it might cost you some other benefit. It's a straightforward exemption for the veteran's homestead, and nothing more complicated than that.

What Happens to a Surviving Spouse?

The benefit doesn't end when the veteran dies. If a disabled veteran was eligible for the exemption immediately before death, the surviving spouse keeps it.1

The exemption continues for as long as the surviving spouse does not remarry. And it's more flexible than you might assume: it applies to any homestead the surviving spouse owns and lives in, including a home the spouse buys after the veteran has passed away.1 So a widow or widower who downsizes to a smaller house later on can carry the exemption to the new home, provided they haven't remarried.

That carryover can be a meaningful financial cushion for a surviving spouse who downsizes or relocates within Michigan later on.

How to Apply for the Exemption

The exemption isn't granted automatically. You have to file for it, and you file locally, not with the state.

To claim it, the veteran (or the veteran's legal designee, or an eligible surviving spouse) files an application in the form and manner prescribed by the State Tax Commission with the assessing officer for your local assessing unit, which is your city or township assessor. The filing window runs after January 1 and before December 31 of the year you're claiming the exemption for.1 Bring your VA documentation showing the qualifying rating, since that's what the assessor needs to confirm eligibility.

There's good news on the paperwork front. Under a change to the law, an exemption granted as to taxes levied on or after January 1, 2025 stays in effect without you having to reapply every year. It continues until you rescind it or the assessor denies it.1 Before that change, veterans had to refile annually, so if you've been renewing every year out of habit, check with your assessor about whether you still need to.

If you'd like help gathering the right VA paperwork or confirming which qualifying path applies to you, the Michigan Veterans Affairs Agency (MVAA) is the place to start. Its Michigan Veteran Resource Service Center helps veterans and their families access discharge documents and get connected to a Veteran Service Officer, and MVAA also points veterans to a "Find an accredited VSO Near Me" locator, where veterans and dependents can choose any Veteran Service Officer or VA Benefits Counselor listed for their county, regardless of affiliation. Resource center technicians take calls Monday through Friday, 8 a.m. to 5 p.m., at 1-800-MICH-VET (1-800-642-4838).3

How the Disabled Veteran Property Tax Exemption Works With Your Michigan VA Benefits

It's natural to worry that claiming a state tax break might interact with something the VA pays you. This is a state program, not a federal benefit, and it lowers a property tax bill rather than paying you. If you receive, or are applying for, a needs-based VA Pension or Aid and Attendance, which the VA assesses on income and net worth, confirm your own situation with an accredited representative.

Michigan's disabled veteran property tax exemption is created and administered under state law, and it's a separate program from the federal VA's disability-compensation and pension benefits.1 Your VA disability rating is what unlocks the state exemption, but the exemption itself is a Michigan property-tax matter handled by your local assessor, entirely apart from the check the VA sends you.

That means the exemption sits comfortably alongside benefits like the VA Aid and Attendance pension, a federal benefit for wartime veterans who need help with daily activities.4 For questions about whether a pension is within reach, MVAA directs veterans to their local Veteran Service Officer, and the VA says an accredited VSO representative's services on a VA benefit claim are always free.3 If you're mapping out every benefit an aging veteran in your family can use, start with our overview of VA benefits for senior care in Michigan, and for the full picture of the pension itself, see our national guide to VA benefits for senior care.

Learn More

Find personalized help claiming Michigan's disabled veteran property tax exemption at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.