Michigan Financial Benefits for Veterans
Military Retirement Pay and State Taxes
Military retirement pay is fully exempt from Michigan state income tax. However, distributions from the Thrift Savings Plan (TSP) are not exempt—although TSP does not withhold state or local income taxes, all distributions are reported annually via IRS Form 1099-R and may be taxed by the state. Early withdrawals could lead to additional tax liabilities.
VA Military Disability Retirement Pay
Military Disability Retirement Pay provided due to injuries or illnesses from active duty service in the U.S. Armed Forces is not taxable in Michigan. This includes payments such as:
- Disability compensation or pension benefits for Veterans or their dependents
- Grants for specially adapted housing
- Vehicle grants for Veterans with vision or limb loss
- Benefits received under a dependent-care program
VA Dependency and Indemnity Compensation (DIC)
DIC payments—provided tax-free to eligible surviving family members of Service members who died in the line of duty or from service-related conditions—are also exempt from Michigan income tax.
Survivor Benefit Plans
Annuities paid to surviving spouses under the Survivor Benefit Plan (SBP), Reserve Component Survivor Benefit Plan (RCSBP), or the Retired Serviceman’s Family Protection Plan (RSFPP) are not subject to Michigan income tax.
Homestead Property Tax Credit
Michigan offers a property tax credit of up to $1,500 for eligible Veterans, Service members, and surviving spouses. The credit amount is based on household income in relation to property tax paid on a primary residence with a taxable value of up to $136,600.
Disabled Veteran Property Tax Exemption
Eligible disabled Veterans and un-remarried surviving spouses may receive a full property tax exemption on their Michigan primary residence.
To qualify, the Veteran must:
- Be a Michigan resident
- Have received an honorable discharge
- Meet one of the following:
- Be rated 100% permanently and totally disabled by the VA
- Have received VA financial assistance for adapted housing
- Be classified as individually unemployable by the VA
Sales Tax in Michigan
- Statewide Rate: 6.00%
- County Rate: No additional county sales tax allowed
- Exemptions:
- Prescription medications
- Unprepared food items
Recreation
Michigan Outdoor Recreation Benefits for Service Members and Veterans
Active duty Michigan residents serving in the U.S. Armed Forces are entitled to complimentary hunting and fishing licenses. Nonresident active duty personnel stationed in Michigan can obtain these licenses at the same rate as residents. Licenses can be acquired online or at any Department of Natural Resources (DNR) Customer Service Center. Service members must carry proof of active duty status along with their DNR license while hunting or fishing.
Complimentary Hunting and Fishing Licenses for Michigan’s Disabled Veterans
Michigan residents who are Veterans with a 100% VA disability rating or designated as individually unemployable can receive all standard, non-lottery hunting and fishing licenses at no cost. A VA letter confirming eligibility must be presented during application, and Veterans should carry both the license and the VA confirmation while engaging in outdoor activities. Licenses can be obtained at any DNR Customer Service Center or through the official online portal.
Free Access to Michigan State Parks for Eligible Veterans
Veterans who are Medal of Honor recipients, 100% VA-rated disabled, or former prisoners of war may receive a free Michigan Recreation Passport. This passport allows vehicle access to state parks, recreation zones, state forest campgrounds, boat launch areas, and trailheads. To qualify, the Veteran must be a Michigan resident and possess an official Michigan Ex-POW, Medal of Honor, or Disabled Veteran license plate.
Additional Military and Veteran Benefits in Michigan
State Retirement Pay for Michigan National Guard Members:
Michigan offers a state-funded retirement benefit to former members of the Michigan National Guard who have completed at least 19 years, 6 months, and 1 day of qualifying active service. Eligible retirees receive $600 annually (equivalent to $50 per month), beginning at age 55 or the date the application is approved—whichever comes later. This benefit is only accessible after official retirement from the Guard.
This retirement pay is not issued automatically. Eligible individuals must complete and submit a written application using the “Retirement Application for Michigan National Guard State Military Retirement” form, available through the Michigan Office of Retirement Services. Applications can be filed up to three months before retirement or reaching age 55.
This benefit is not retroactive. For those separated after turning 55, payments begin the month following discharge. If the application is submitted post-55, benefits will start the month after the completed application is received.
This state pension is in addition to any federal military retirement benefits. While it is exempt from Michigan state income tax, it is still subject to federal taxation.
Benefits for Surviving Spouses:
Spouses of deceased Michigan National Guard retirees who were eligible for state retirement pay may receive $41.67 per month for the remainder of their lives. To apply, the surviving spouse must submit the “Retirement Application for Spousal Benefits” to the Michigan Office of Retirement Services, along with copies of the Veteran’s death certificate, and their birth and marriage certificates.
Education Programs
Michigan Children of Veterans Tuition Grant (CVTG):
The CVTG program offers financial support for undergraduate tuition to eligible children of specific Veterans and Service members. It can be used at any accredited Michigan community college, public university, or private degree-granting institution. The award amount depends on the student’s enrollment status:
- Up to $2,800 for full-time students
- Up to $2,100 for students enrolled three-quarters time
- Up to $1,400 for half-time students
Eligible students may receive this grant for up to four academic years, with a maximum total award of $11,200.
Michigan National Guard State Tuition Assistance Program (MINGSTAP):
This program provides tuition aid to active members of the Michigan National Guard who are attending educational institutions in Michigan, including public or private colleges, universities, trade schools, vocational, or technical schools. Award amounts are based on the type of program:
- Training or certificate programs – up to $6,000
- Associate degrees – up to $14,400
- Bachelor’s degrees – up to $14,400
- Master’s degrees – up to $6,000
Michigan National Guard College and University Tuition Grants:
The Michigan National Guard collaborates with various state colleges and universities to offer tuition grants. When combined with GI Bill benefits and other aid programs, these grants can fully cover the cost of education for Guard members. Additional scholarship opportunities are also available through partnering organizations.
Michigan Interstate Compact on Educational Opportunity for Military Children (MIC3):
The MIC3 agreement aims to ease educational transitions for children in military families facing frequent relocations and deployments. Key goals include:
- Ensuring timely enrollment and transfer of academic records without penalty
- Streamlining placement, course content, attendance, and grading practices
- Supporting eligibility for academic and extracurricular activities
- Enabling on-time graduation
- Creating and enforcing consistent rules across member states
- Encouraging collaboration among schools, families, and military organizations to promote student success
Michigan High School Diplomas for Wartime Veterans:
Michigan offers honorary high school diplomas to Veterans who left school early to serve in the U.S. military. Eligible individuals must have attended a Michigan high school and received an honorable discharge after serving during the following periods:
- World War II: December 16, 1940 – December 31, 1946
- Korean War: June 27, 1950 – January 31, 1955
- Vietnam War: February 28, 1961 – May 7, 1975
Veterans or their next of kin can request a diploma by submitting a completed application along with a copy of the Veteran’s discharge papers to the local school district.
Housing Assistance: Locations for Veterans Homes in Michigan
The Michigan Department of Military and Veterans Affairs operates three dedicated Veterans Homes across the state, offering a wide range of skilled nursing services to eligible Veterans and their families.
Each facility provides comprehensive care, including:
- Long-Term Skilled Nursing Services – For individuals needing continuous medical care
- Short-Term Skilled Nursing – Designed for recovery following illness, surgery, or hospitalization
- Rehabilitation Services – Including physical, occupational, and speech therapy
- Memory and Dementia Care – Around-the-clock supervision and specialized programs for cognitive support
- Palliative Services – Focused on comfort and enhancing quality of life for those with serious conditions
Michigan State Veterans Home at Chesterfield Township
Michigan State Veterans Home at Grand Rapids
Michigan State Veterans Home at D.J. Jacobetti
Eligibility for Michigan Veteran Homes Care
Living in Michigan is not mandatory to qualify for care at the Michigan Veteran Homes. To be considered for admission, applicants must meet these requirements:
- Be a Veteran with an honorable discharge
- Qualify for VA healthcare benefits or receive financial aid for long-term skilled nursing care
- Be a dependent of a Veteran who either meets or previously met the eligibility criteria at the time of their passing, such as:
- A current or surviving spouse
- A former spouse
- A Gold Star parent
Employment & Job Training Support for Veterans in Michigan
State Employment Preferences for Veterans and Spouses
Michigan offers Veterans and eligible spouses a hiring advantage for civil service roles. This preference applies only to first-time appointments and requires applicants to meet all minimum qualifications.
Civil Service Exam Scoring Bonus
If hiring is based on a written exam or numerical scoring, the following bonus points apply:
- +5 Points: Veterans and surviving spouses
- +10 Points:
- Disabled Veterans
- Spouses of Veterans with a 50%+ service-connected disability
- Surviving spouses with children under 18 or those caring for a disabled child
If No Exam Is Given:
When numerical scores aren’t used, preference is added as a percentage of the total possible screening score:
- +5%: Veterans or surviving spouses
- +10%: Same groups as above
Additional Consideration During Screening
If applications are randomly reduced, Veterans and eligible spouses must remain in the candidate pool and be evaluated using the same merit-based process.
Eligibility Requirements
To qualify, a Veteran must have:
- Served 90+ days of active duty
- Received an honorable discharge
- Not be receiving military retirement pay
- Disabled Veterans must have a VA or branch-determined disability rating
Applicants must register for preference through the Michigan Civil Service Commission Veterans Registration portal.
Michigan Veteran Employment Rights & Services
Employment Protection for Service Members
Michigan law (Act 133 of 1955) complements federal protections under USERRA. It safeguards Service members from discrimination based on military status, mandates job protection during active duty, and allows for differential pay when deployed.
Veterans’ Employment Services (VES)
VES offers tailored job search and training services through Veterans’ Career Advisors (VCAs), especially for Veterans and spouses facing employment barriers. Services include:
- Career counseling
- Customized job plans
- Resume and job search assistance
- Labor market insights
LARA Licensing Benefits
The Michigan Department of Licensing and Regulatory Affairs (LARA) offers:
- License fee waivers for Veterans
- Renewal and CE exemptions during active duty
- Temporary licenses for military spouses
- Use of military experience for license qualification
- VA reimbursement for exam fees
Federal Employment Preferences for Veterans
Veteran Hiring Priority
Veterans receive hiring and retention advantages for federal civil service jobs, particularly in times of layoffs or reductions.
Federal Point Preferences
- +5 Points: For service during wartime, specific campaigns, or periods such as:
- April 28, 1952–July 1, 1955
- Gulf War (Aug. 2, 1990–Jan. 2, 1992)
- OIF/OEF (Sept. 11, 2001–Aug. 31, 2010)
- Campaign medal recipients
- +10 Points:
- Veterans with a 10%–30% disability
- Those with a Purple Heart
- Certain spouses, surviving spouses, or mothers of disabled or deceased Veterans
- Spouses of 100% disabled Veterans or those unable to work in their usual occupation
Minimum Service Requirements
Veterans who enlisted after Sept. 7, 1980, typically must have served continuously for 24 months unless discharged for hardship, injury, or disability.
USERRA – Uniformed Services Employment and Reemployment Rights Act
Key Protections Under USERRA
- Ensures reemployment after military service (up to 5 years cumulative, with exceptions)
- Mandates job reinstatement at the same level of pay, benefits, and seniority
- Requires reasonable accommodations for service-connected disabilities
- Allows up to 2 years for injured Service members to return to work
- Entitles Service members to pension and health benefits while on active duty
Health Coverage Extension
Military members on duty for over 30 days may continue employer health coverage for up to 24 months (may pay up to 102% of premium). For service under 31 days, coverage remains unchanged.
Eligibility
Applies to any Veteran or member of the Guard/Reserve who leaves civilian employment for military training or service.
The Veterans’ Employment and Training Service (VETS) under the U.S. Department of Labor assists in resolving USERRA claims, including for federal employees.
Burials and Memorials
It’s important to document your burial preferences, including interment in a national cemetery and the use of a VA-provided headstone, and ensure this information is included with your personal and medical records.
The National Cemetery Administration (NCA) honors eligible Veterans and their families by offering a dignified resting place and a lasting tribute that reflects the Veteran’s service to the United States.
VA burial benefits include a gravesite in a national cemetery with available space, grave opening and closing, perpetual upkeep, a government-issued headstone or marker, a burial flag, and a Presidential Memorial Certificate — all provided at no cost to the family. In certain cases, Veterans may also qualify for a burial allowance. Cremated remains are treated with the same respect and are eligible for interment or inurnment within national cemeteries.
These burial benefits are also available to eligible spouses and dependents. They may be laid to rest with the Veteran, and the VA will ensure lifelong maintenance of the gravesite. The spouse’s or dependent’s name, along with their birth and death dates, will be engraved on the Veteran’s headstone at no charge. Notably, spouses and dependents remain eligible for burial benefits regardless of whether they pass away before the Veteran, and they do not have to be buried in the same national cemetery.
National Cemeteries include:
Augusta: Fort Custer National Cemetery
Holly: Great Lakes National Cemetery
Mackinac Island: Fort Mackinac Post Cemetery
Port Huron: Lakeside Cemetery Soldiers’ Lot
Michigan VA Support Services
Veterans in Michigan have access to a Regional Benefits Office and a dedicated VA Medical Center for their healthcare and service-related needs.
Michigan VA Regional Benefits Office
- Detroit: Detroit Regional Office
Michigan VA Medical Centers
- Ann Arbor: VA Ann Arbor Healthcare System
- Battle Creek: Battle Creek VA Medical Center
- Detroit: John D. Dingell VA Medical Center
- Iron Mountain: Oscar G. Johnson VA Medical Center
- Saginaw: Aleda E. Lutz VA Medical Center
Key Details on Michigan Veteran Benefits
If you’re a Michigan Veteran applying for VA benefits for the first time, you’ll need to submit a copy of your DD Form 214. This document confirms your discharge classification, full name, Social Security number, service branch, and dates of service. Veterans with honorable or general discharges are generally eligible for most VA benefits.
Keep all important documents—including your discharge papers and medical records—secure and easily accessible to both you and your family. It’s strongly recommended to store them in a tamper-proof, damage-resistant place, such as a locked safe.
Most VA benefits eligibility requires active duty service with a discharge that isn’t classified as dishonorable. Active service includes full-time duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard, as well as commissioned officers in the Public Health Service, NOAA, or Environmental Services Administration.
Veterans discharged with a “Dishonorable” status due to court-martial may be disqualified from receiving benefits. However, those on parole or currently incarcerated might still qualify for specific VA services. A local VA Regional Office can help clarify eligibility in cases involving incarceration or multiple discharges under different conditions.
Information current as of November 2023.
Veteran Benefits in Michigan
Disabled Veterans in Michigan with a VA disability rating of 90% or lower may qualify for extra benefits. Reach out to Vital Veterans Consultants for a complimentary, no-obligation consultation. We’ll evaluate your claim to see if you’re eligible for more support.
