Michigan disabled veteran property tax exemption (2026)
Full homestead exemption at 100% or IU.
See your true monthly cost in Michigan →
Free. Applies your rating, VA pay and this exemption to any home.
Property tax break by VA rating
| VA rating | Property tax break | Saves / yr* |
|---|---|---|
| 10–90% | No statewide exemption | — |
| 100% or IU | Full exemption | $4,960 |
*Example: a $400,000 home at Michigan's average property tax rate of 1.24%, about $4,960 a year before any exemption. Your bill depends on your county and home. IU means paid at the 100% rate for individual unemployability. P&T means permanent and total. Exemptions aren't automatic: you apply with your county assessor after you buy.
Military retirement pay
Military retirement not taxed.
VA disability pay is tax-free in every state.
Home loan and down payment help
- Michigan State Housing Development Authority ↗ (state housing agency: first-time buyer and down payment programs)
Programs change often. Check income limits, first-time buyer rules and whether they can be combined with a VA loan.
Get help in Michigan
- Michigan Veterans Affairs Agency ↗: free help with state veteran benefits.
- Your county assessor's office handles the property tax exemption application.