100% VA Disability Benefits in Michigan: Tax, Tuition, Healthcare

A 100% VA disability rating unlocks the broadest package of 100% VA disability benefits in Michigan available to any veteran: tax-free monthly compensation from the federal government, no-cost VA medical care, a full exemption from property taxes on your home, a nearly free disabled veteran license plate with registration taxes waived, free hunting and fishing licenses, free state park entry, tuition grants for your children, and health and education benefits for your spouse and dependents.

Monthly VA Compensation

For the 2026 rate year (effective December 1, 2025), a veteran rated at 100% with no dependents receives $3,938.57 per month. With a spouse and no children, the amount is $4,158.16. With a spouse and one child, it is $4,318.98.¹ This compensation is not subject to federal or state income tax, and because it is already excluded from federal adjusted gross income, it does not factor into Michigan taxable income either.

No-Cost VA Healthcare

A 100% rating puts you in VA Priority Group 1, the highest enrollment tier. You pay no copays for VA care, tests, or medications, including treatment for conditions unrelated to your military service.² Michigan is served by five VA Medical Centers (Ann Arbor, Battle Creek, Detroit, Iron Mountain, and Saginaw) and a network of community-based outpatient clinics.³

Full Property Tax Exemption on Your Home

The most valuable state benefit is a complete exemption from property taxes on your homestead. The exemption is set out in MCL 211.7b, formally the “Dannie Lee Barnes disabled veteran property tax relief act” (Public Act 161 of 2013), and it wipes out the entire property tax bill on a qualifying home.⁴

To qualify, you must be a Michigan resident with an honorable discharge, and the VA must have determined one of the following: that you are permanently and totally disabled and entitled to benefits at the 100% rate, that you are certified for specially adapted housing assistance, or that you are rated as individually unemployable.⁴ Legal title to the home must be held solely by you or jointly with your spouse.

You apply by filing Form 5107 (State Tax Commission Affidavit for Disabled Veterans Exemption) with your local assessing officer between January 1 and December 31 of the tax year.⁵ For taxes levied on or after January 1, 2025, an approved exemption remains in effect without annual re-filing until you rescind it or an assessor denies it.⁴ If you do not own and occupy the home for the full year, the exemption is prorated on a daily basis.

Surviving Spouse Coverage

An unremarried surviving spouse keeps the full exemption, including on a home acquired after the veteran’s death.⁴ Public Acts 150, 151, and 152 of 2023 formalized that continuation, extended it to any homestead the spouse owns and occupies, and, beginning January 1, 2025, eliminated the need to reapply each year.⁶

State Income Tax Treatment

If you paid property taxes before the exemption took effect, you or a surviving spouse can seek a credit on Michigan form MI-1040CR-2.⁷ Michigan also fully exempts military retirement and pension pay from state income tax.⁸

A separate provision in MCL 206.30 lets a taxpayer claim an additional $250 exemption for each dependent who is a qualified disabled veteran. Starting with the 2025 tax year, disabled veterans may also deduct income reported on federal Form 1099-C when the U.S. Department of Education discharges a student loan under its disability discharge rules.⁹

Disabled Veteran License Plate

With a total and permanent 100% rating, you can register one passenger vehicle with a disabled veteran (“DV”) plate for a one-time $5 administrative fee, and you are exempt from paying registration taxes.⁷ A 2024 law (Public Act 149 of 2024) opened DV plate eligibility to veterans rated at 50% or higher, but the registration tax waiver stays reserved for the 100% level. A surviving spouse of a 100% disabled veteran can continue to renew the plate on the same tax-exempt terms.¹⁰

Free Hunting, Fishing, and State Parks

Michigan resident veterans who are permanently and totally disabled at the 100% rate (for disabilities other than blindness), or who are rated as individually unemployable, may obtain any resident hunting or fishing license that does not require a separate application, at no cost.¹¹ Carry VA documentation proving eligibility when picking up the licenses and while afield.

A Michigan-registered vehicle displaying a valid DV plate is also exempt from the Recreation Passport, which means free entry to all state parks, recreation areas, state forest campgrounds, boating access sites, and state-managed trails.¹²

Tuition Grant for Your Children

The Children of Veterans Tuition Grant (CVTG) provides undergraduate tuition assistance to the natural or adopted children of Michigan veterans who have a total and permanent VA disability rating, who died from a service-connected cause, or who are listed as missing in action.¹³ A full-time student can receive up to $2,800 per year, with proportionally lower amounts for part-time enrollment.¹⁴

The student must be 16 to 26 years old, a U.S. citizen or permanent resident, a Michigan resident for at least one year before applying, enrolled at least half-time, and holding a cumulative GPA of at least 2.25. The grant is renewable for up to four academic years, and applications are filed annually with the Michigan Department of Lifelong Education, Advancement, and Potential.¹³

Health and Education for Spouses and Dependents

A 100% permanent and total rating opens several federal programs for the rest of your household.

CHAMPVA (the Civilian Health and Medical Program of the Department of Veterans Affairs) provides health coverage to spouses, dependents, and survivors who meet service-connected disability requirements. Enrollees can also access discounted dental insurance, fill prescriptions through the VA’s Meds by Mail program, and in some cases receive care directly at VA facilities.¹⁵
Dependents’ Educational Assistance (DEA, Chapter 35) pays spouses and children of veterans with a permanent and total service-connected disability a monthly stipend for school or job training. For the October 2025 through September 2026 rate year, a full-time student at an institution of higher learning receives $1,574 per month, with lower amounts at part-time rates.¹⁶¹⁷
Veterans with a 100% service-connected rating (or 100% unemployability) are authorized DOD-issued ID cards, and dependents are eligible for those cards too. That card unlocks commissaries, military exchanges, recreational lodging, and other morale, welfare, and recreation facilities for the whole family. At ratings below 100%, commissary access extends only to the veteran, not family members.¹⁸

Michigan Veterans Homes

Three state-run veterans homes (in Chesterfield Township, Grand Rapids, and Marquette) offer long-term care, short-term rehabilitation, memory care, palliative care, and domiciliary care. Services include an in-house pharmacy, dental and vision clinics, physical therapy, and structured recreation.¹⁹ To apply, submit a completed application with a DD-214, proof of income and insurance, and a recent physical examination to the facility of your choice.²⁰

Emergency Financial Help

For a short-term crisis such as an unexpected utility bill, vehicle repair, or housing expense, the Michigan Veterans Trust Fund (MVTF) provides state-funded emergency grants under Public Act 9 of 1946. Eligibility runs on honorable discharge and qualifying wartime or expeditionary service, and applications go through local MVTF county committees. Since December 2021, peacetime-era veterans aged 65 and older with at least 180 days of honorable service also qualify.²¹ County-level Soldier and Sailor Relief Funds can add further emergency assistance, including burial cost support. Call the MVAA at 800-MICH-VET (800-642-4838) or submit the online Resource Assistance Form to be routed to the right program.²²

Help Filing and Claiming

Accredited Veteran Service Officers can file and manage disability claims, pull discharge documents, and identify state and federal benefits you qualify for. You and your dependents can choose any accredited VSO or VA Benefits Counselor in your county and may switch counselors at any point.²³ The Michigan Veteran Resource Service Center at 800-642-4838 is the single number to call to be connected.²⁴

1
U.S. Department of Veterans Affairs. Veterans Disability Compensation Rates
2
U.S. Department of Veterans Affairs. Your Health Care Costs
3
U.S. Department of Veterans Affairs. Michigan VA Facilities
4
Michigan Legislature. MCL 211.7b
5
Michigan Department of Treasury. Disabled Veterans Exemption Information
6
Michigan Veterans Affairs Agency. Michigan Public Acts Benefiting Disabled Veterans and Surviving Spouses
7
Michigan Veterans Affairs Agency. Benefits for 100 Percent Disabled Veterans
8
Michigan Department of Treasury. Are Military Retirement Benefits Exempt From Michigan Individual Income Tax
9
Michigan Legislature. MCL 206.30
10
Michigan Legislature. House Bill 5127 Analysis
11
Michigan Department of Natural Resources. Fishing License Information
12
Michigan Department of Natural Resources. Recreation Passport
13
University of Michigan Financial Aid. Non-Need-Based Grants
14
Michigan Department of Lifelong Education, Advancement, and Potential. MiLEAP Fiscal Year 2026 Budget Update
15
U.S. Department of Veterans Affairs. Health and Disability Benefits for Spouses, Dependents, and Survivors
16
U.S. Department of Veterans Affairs. Education and Career Benefits for Family Members
17
U.S. Department of Veterans Affairs. DEA Rates
18
Military OneSource. Expanding Access Fact Sheet
19
Michigan Veteran Homes. D.J. Jacobetti Home for Veterans
20
Michigan Veteran Homes. Apply for Admission
21
Michigan Veterans Affairs Agency. Michigan Veterans Trust Fund
22
Michigan Veterans Affairs Agency. Emergency Assistance
23
Michigan Veterans Affairs Agency. County Filter Search Locations
24
Michigan Veterans Affairs Agency. MVAA Home