The web Browser you are currently using is unsupported, and some features of this site may not work as intended. Please update to a modern browser such as Chrome, Firefox or Edge to experience all features Michigan.gov has to offer.
Treasury Provides Special Benefits to Military Members and Veterans
November 09, 2023
As Veterans Day approaches on Saturday, Nov. 11, the state of Michigan extends its gratitude to current and former military members by reminding them of the special benefits they may be entitled to receive through the Michigan Department of Treasury.
Current and former military members may be eligible to receive:
- Military Pay Tax Exemption. Military pay is exempt from Michigan tax, including military retirement benefits and exit and separation pay.
- Children of Veterans Tuition Grant. This program provides undergraduate tuition assistance to the children of Michigan veterans who were totally and permanently disabled, missing in action or died while serving. Students may receive scholarship assistance for up to four academic years for a total of up to $11,200.
- Disabled Veterans Property Tax Exemption. A property tax exemption for real property used and owned as a homestead as outlined in state law.
- Principal Residence Exemption (PRE) for Active-Duty Military Personnel. Property owners can retain a PRE while on active duty if their property is rented or leased.
- Property Tax Relief during Active Military Service. Property owned by a serviceperson cannot be sold to pay delinquent property taxes during a tour of active duty.
- Summer Property Tax Deferment. A serviceperson, veteran or widow or widower whose income outside of military compensation is no more than $7,500 per year may be eligible for a summer property tax deferment.
- Federal Military Spouses Residency Relief Act. The spouse of an individual in the military may not be subject to the state's taxation if they are a nonresident of the state, the service member is present in the state due to military orders, the spouse is solely in the state to accompany the service member, and the spouse maintains a domicile in another state. This act was amended in December 2018 to alternately allow military spouses to elect the same state of domicile as their service member spouse, even if they are not present in that state.
"The Michigan Department of Treasury has a commitment to work closely with our military members past and present to ensure they get the tax benefits and other resources they’ve earned," Chief Deputy State Treasurer Jeff Guilfoyle said. "If you have questions about any of these benefits, please contact us so we can talk about your options."
Individuals with questions about tax relief and other benefits for current and past military members should go to Michigan.gov/Treasury and click on "Contact." Program-specific phone numbers can be found on the "Contact" webpage.
In addition to providing military benefits to military members and veterans, the Michigan Department of Treasury achieved a Gold-Level Veteran-Friendly Employer Certification from the Michigan Veterans Affairs Agency (MVAA) in June 2023.
To be selected as a Gold-Level Veteran-Friendly Employer, Treasury is required to follow guidelines outlined by the MVAA. Employers must retain at least 75% of veteran hires over the most recent 12 months, implement internal veteran support networks, and create either a hiring rotation or leadership development program within their organization, among other requirements.