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Michigan
Military Benefits

A plain-English guide to every major Michigan law and federal protection that affects servicemembers, veterans, and military families stationed in or relocating to Michigan.

Retirement
Military retirement fully exempt
Highlight
Active duty pay 100% exempt
Property tax
100% P&T veteran property tax exemption
Education
National Guard free tuition at state colleges
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The rules families feel first. Jump to the benefit, then who to call.

Military Pay and State Income TaxMichigan fully exempts qualifying active-duty military compensation and U.S. Armed Forces retirement pay from state income tax when included in federal AGI.Military Active Duty PayProperty Tax Exemptions and DiscountsMichigan provides a full property tax exemption for veterans rated 100% permanently and totally disabled by the VA. Additional partial exemptions may apply for veterans with lower disability ratings.100% Disabled VeteransVehicle Registration and Driver LicenseSCRA protects active duty servicemembers from being required to register vehicles in Michigan while stationed here on orders. Michigan also offers veteran-specific license plates and registration benefits for disabled veterans.Out-of-State Vehicle RegistrationMilitary Spouse Employment and LicensingMichigan has enacted military spouse licensing reciprocity laws requiring expedited license transfers for qualified professionals. Military spouses may also maintain their home state domicile and vehicle registration regardless of time spent in Michigan.Michigan Military Spouse License Reciprocity

On this page

  1. 01Military Pay and State Income Tax
  2. 02Property Tax Exemptions and Discounts
  3. 03Vehicle Registration and Driver License
  4. 04Military Spouse Employment and Licensing
  5. 05SCRA
  6. 06Education Benefits in Michigan
  7. 07Voting and Residency Rights
  8. 08Contacts
  9. 09School liaisons
  10. 10Base guides

Not legal advice. Laws change. Verify current rules with your installation JAG office, Michigan state tax authority, or a licensed Michigan attorney before making financial or legal decisions based on this guide. Last reviewed June 2026.

01 · Military Pay and State Income Tax

Military Pay and State Income Tax

Michigan fully exempts qualifying active-duty military compensation and U.S. Armed Forces retirement pay from state income tax when included in federal AGI.

Military Active Duty Pay

Michigan has a flat state income tax, but compensation for services in the U.S. Armed Forces is fully deductible from Michigan taxable income under MCL 206.30, including active-duty pay earned anywhere. Report military pay on MI-1040 Schedule 1 and Schedule W (even if no Michigan tax was withheld) and subtract it to the extent it is included in federal AGI. Civilian pay from the Department of Defense does not qualify. Camp Grayling is the largest National Guard training installation in the United States.

Military Retirement Pay

Retirement or pension benefits received for services in the U.S. Armed Forces (and Michigan National Guard retirement) are fully exempt from Michigan income tax under the same Armed Forces compensation subtraction. This is separate from Michigan's age-based private/public pension deduction rules. Report the income and claim the subtraction on Schedule 1 with Schedule W.

VA Disability Compensation

VA disability compensation is fully exempt from Michigan state income tax. This is a federal-level exemption honored automatically. This applies to all ratings including partial disability compensation and Combat-Related Special Compensation (CRSC).

Military Spouse Income

Under the Veterans Benefits and Transition Act of 2018, military spouses who maintain domicile in another state do not owe Michigan income tax on wages earned in Michigan while accompanying their servicemember on military orders. This applies regardless of how long the spouse has lived in Michigan.

Survivor Benefit Plan (SBP) Payments

SBP annuity payments to surviving spouses should be reviewed with a military-aware tax professional. Related Armed Forces retirement/pension treatment is generally favorable in Michigan, but filing details can vary. Confirm current treatment with Michigan Department of Treasury before filing.

Conditions Apply

Do this next. Claim the Armed Forces compensation and retirement subtraction on Michigan Form MI-1040 Schedule 1 with Schedule W. Contact Michigan Department of Treasury at (517) 335-7508 for current filing guidance.

02 · Property Tax Exemptions and Discounts

Property Tax Exemptions and Discounts

Michigan provides a full property tax exemption for veterans rated 100% permanently and totally disabled by the VA. Additional partial exemptions may apply for veterans with lower disability ratings.

100% Disabled Veterans

Michigan veterans rated 100% P&T disabled receive a full property tax exemption on their primary residence. Additional exemptions apply to veterans with at least a 10% disability rating. The exemption passes to a surviving spouse who remains in the home. Apply at your local city or township assessor.

Surviving Spouse Protection

The surviving spouse of a 100% P&T disabled veteran in Michigan retains the full property tax exemption as long as they remain unmarried and continue to occupy the property as their primary residence. The exemption passes automatically without the spouse needing to re-qualify with a new VA rating.

Active Duty Vehicle Personal Property Tax

Active duty servicemembers stationed in Michigan on military orders are not required to pay Michigan personal property taxes on vehicles registered in their home state. SCRA protects home-state registration from challenge. If you register a vehicle in Michigan, local personal property tax rules apply.

Conditions Apply

Do this next. Apply for the 100% P&T property tax exemption at your county assessor or auditor office. Bring your VA award letter showing 100% P&T rating, DD-214, and proof of primary residence. Processing typically takes 30 to 60 days.

03 · Vehicle Registration and Driver License

Vehicle Registration and Driver License

SCRA protects active duty servicemembers from being required to register vehicles in Michigan while stationed here on orders. Michigan also offers veteran-specific license plates and registration benefits for disabled veterans.

Out-of-State Vehicle Registration

Active duty servicemembers are not required to register their vehicles in Michigan while stationed here under SCRA. You may keep home-state plates and registration. Michigan cannot require registration change based solely on military orders. Keep a copy of current orders in your vehicle at all times in case of a traffic stop.

100% Disabled Veterans

Veterans with a 100% P&T disability rating may receive a vehicle registration fee waiver or significant reduction in Michigan. Free specialty disabled veteran license plates are also available. Contact Michigan SOS, Veterans Services to verify current eligibility and apply.

Driver License

A Michigan driver license for a servicemember or dependent stationed outside the state does not expire during active duty. The license remains valid for 90 days after separation or return to Michigan. When you PCS back, you will have at least 60 days to renew before enforcement.

Military Spouse Vehicle and License

Military spouses may maintain their home state vehicle registration and driver license while residing in Michigan due to military orders. They are not required to obtain a Michigan license or plates. This applies regardless of how long they have lived in the state.

Do this next. SCRA vehicle protections apply at traffic stops. Carry a printed copy of current orders in your vehicle. If law enforcement questions your out-of-state plates, calmly explain your active duty status and provide orders. If you encounter issues, contact your installation JAG office.

04 · Military Spouse Employment and Licensing

Military Spouse Employment and Licensing

Michigan has enacted military spouse licensing reciprocity laws requiring expedited license transfers for qualified professionals. Military spouses may also maintain their home state domicile and vehicle registration regardless of time spent in Michigan.

Michigan Military Spouse License Reciprocity

Michigan Compiled Laws 339.6075 requires licensing boards to grant expedited temporary authorization and full licenses to military spouses. Michigan participates in the nurse licensure compact for seamless RN and LPN transfers. Spouses may also maintain their home state vehicle registration under SCRA.

Unemployment Compensation for Spouses Following PCS

Michigan law allows a military spouse who voluntarily leaves employment to accompany their servicemember on a PCS move to collect unemployment benefits. They are not considered to have voluntarily quit without good cause. The spouse must have worked in Michigan prior to the PCS move.

Federal Hiring Preference for Military Spouses

Military spouses of active duty servicemembers are eligible for non-competitive appointment to federal civil service positions under Executive Order 13473. This applies at any federal agency with a presence near Michigan installations, including DoD civilians, VA, and other federal employers.

Remote Work and Michigan Income Tax

A military spouse who maintains domicile in another state and works remotely for an out-of-state employer while living in Michigan on military orders may be exempt from Michigan income tax on those remote wages. Michigan-source income may still be taxable. Consult a military-aware CPA for your specific situation.

Conditions Apply

Do this next. Contact your installation Family Support Center for a list of Michigan licensing boards with military spouse reciprocity processes. Each board has its own form and documentation requirements. Submit applications with your spouse's military orders, your out-of-state license copy, and verification of good standing from the prior state.

05 · SCRA

SCRA, Federal Protections That Apply in Michigan

Michigan courts and landlords are required to honor all federal SCRA protections. Your installation JAG office can provide free legal assistance for any SCRA issue including lease terminations, interest rate caps, and foreclosure stays.

Lease Termination

You can terminate any Michigan residential lease with 30 days written notice upon receiving PCS orders or a deployment of 90 or more days. Deliver written notice and a copy of orders to the landlord. Termination is effective 30 days after the next rent due date. Michigan landlords cannot charge early termination fees to servicemembers exercising SCRA rights.

6% Interest Rate Cap on Pre-Service Debt

Any debt taken on before entering active duty, including mortgages, car loans, credit cards, and student loans, must be reduced to 6% interest upon written request. Submit written notice with a copy of orders to each lender. The cap applies retroactively, excess interest above 6% is forgiven, not deferred.

Foreclosure Protection

Michigan courts cannot foreclose on a servicemember's primary residence during active duty without a court order. The protection extends for 1 year after separation. Contact your installation JAG immediately if you receive any foreclosure notice while on active duty.

Civil Court Stay of Proceedings

Michigan courts must grant at least a 90-day stay of civil proceedings when a servicemember cannot appear due to military duties. Courts cannot enter a default judgment against an active duty servicemember without a hearing and an attorney appointed to represent their interests.

Do this next. Every Michigan installation has a JAG Legal Assistance Office. Contact information is in the Key Contacts section below. SCRA violations should be reported to JAG immediately. Landlords and lenders familiar with military areas are generally aware of the law, but violations do occur.

06 · Education Benefits in Michigan

Education Benefits in Michigan

Michigan provides in-state tuition for active duty families stationed in the state. Multiple Yellow Ribbon schools operate in Michigan, covering tuition and fees beyond the GI Bill cap for eligible veterans at participating private and out-of-state schools.

In-State Tuition for Active Duty Families

Federal law and Michigan policy grant immediate in-state tuition eligibility to active duty servicemembers stationed in Michigan, their spouses, and dependents. No 12-month waiting period is required. This applies to all Michigan public colleges and universities.

Post-9/11 GI Bill and Yellow Ribbon Schools

Michigan has multiple Yellow Ribbon-participating schools that cover tuition and fees beyond the GI Bill state cap at no additional cost to the veteran. For veterans with 100% GI Bill eligibility, Yellow Ribbon schools eliminate out-of-pocket tuition entirely. Verify current participation at benefits.va.gov/GIBILL before enrolling.

Michigan National Guard Education Assistance

Michigan National Guard members may receive state tuition assistance supplementing federal MGIB-SR benefits. The program can provide substantial tuition coverage at Michigan public schools. Contact the Michigan National Guard Education Office for current benefit amounts and eligibility.

In-State Tuition Preserved After PCS Out of Michigan

Dependent children who establish domicile in Michigan and begin enrollment at a Michigan public university do not automatically lose in-state tuition eligibility if their active duty parent PCSes out of state, provided they maintain continuous enrollment.

Conditions Apply

Do this next. Each Michigan public university has a Veterans Services Office with a School Certifying Official (SCO). Contact the SCO as soon as you enroll to initiate GI Bill certification. Processing can take 4 to 8 weeks; plan accordingly for initial enrollment periods.

07 · Voting and Residency Rights

Voting and Residency Rights

Michigan must honor your right to maintain home-state domicile and vote by absentee ballot. Your installation Voting Assistance Officer can help you register and request a ballot under UOCAVA.

Maintain Home State Domicile

Being stationed in Michigan does not change your legal domicile. You may continue to vote in your home state via absentee ballot under the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA). Submit a Federal Post Card Application (FPCA) at FVAP.gov. Your installation Voting Assistance Officer (VAO) can assist.

Establish Michigan Domicile Voluntarily

If you want to vote in Michigan and claim it as your home state, register at your county election office. Consider the financial implications of switching domicile, including Michigan income tax rates and property tax rules, compared to your current home state.

Conditions Apply

Military Spouse Independent Domicile

Military spouses may independently maintain domicile in any state they choose under VBTA 2018. It does not have to match the servicemember's domicile. Michigan cannot force a spouse to establish Michigan domicile based on their physical presence in the state.

Absentee Voting While Deployed

Michigan accepts the Federal Post Card Application (FPCA) as a combined registration and absentee ballot request. UOCAVA voters may request electronic ballot transmission. Submit your FPCA at least 45 days before any election to ensure ballot delivery and return.

Do this next. Your installation Voting Assistance Officer (VAO) is the best resource for domicile and absentee voting questions. Contact your unit's chain of command to locate your VAO. The Federal Voting Assistance Program at FVAP.gov provides state-specific absentee ballot request forms and deadlines.

Call before it is urgent

Michigan key contacts

Tap the number. These desks handle tax, licensing, benefits, and JAG.

Michigan Veterans Affairs AgencyState benefits, veterans facilities(800) 642-4838Selfridge ANGB JAGSCRA, legal assistance, wills(586) 239-5500Michigan Treasury, Military TaxPension exemption, military pay(517) 335-7508Michigan SOS, Veterans ServicesVeteran license plates, registration(888) 767-6424Camp Grayling HQNational Guard training, mobilization(989) 344-6000Detroit Arsenal LegalSCRA, federal civilian issues(586) 282-5000

State Legislature

Veterans and Servicemember Advocacy

Legislative Committee
Senate Veterans and Military Affairs Committee
This committee oversees legislation affecting active duty servicemembers, veterans, and military families in Michigan. It handles bills on veterans benefits, military employment protections, property tax exemptions, and National Guard policy.
Website: legislature.mi.gov
How to Engage
Contact Your State Representative
Military families can contact their state legislators to weigh in on veteran and servicemember legislation. Find your Michigan representative using your home address at legislature.mi.gov. Committee hearings on veterans bills are typically open to the public and remote testimony is often accepted.

Research-Ranked

Military-Friendly Colleges in Michigan

Rankings based on Military Times Best for Vets, GI Jobs Military Friendly Schools, and Victory Media research methodology. Yellow Ribbon participation verified annually.

Central Michigan University
Military Times Best for Vets
Nation-leading military student population, global campuses on military installations
Eastern Michigan University
GI Jobs Military Friendly
Near Selfridge ANGB, veteran resource center
Ferris State University
Military Friendly
Yellow Ribbon participant, ROTC program, Big Rapids

Rankings and program details change annually. Verify current Yellow Ribbon participation and benefit amounts at benefits.va.gov/GIBILL before enrolling.

Free for military families

School liaison officers in Michigan

Every Michigan military installation has a School Liaison Officer on staff, free of charge. Call before orders drop to get ahead of enrollment deadlines.

Selfridge ANGB

DSN
312-239-5448

Camp Grayling

DSN
312-344-6107

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Michigan housing and schools

Base guides, BAH, and agents who already know this state.

MI BAH RatesCalculate your housing allowance for Michigan installationsOpenCompare All StatesSee how Michigan compares to other states for military familiesOpenPCS PlannerPlan your move to Michigan with our free military PCS toolOpenCareer TransitionCivilian career paths for veterans separating in or near MichiganOpen

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