Financial Benefits for Veterans in Michigan
2 Financial benefits for veterans in Michigan.
Military Retirement Pay Income Tax Exemption
Military retirement and pension benefits are exempt from Michigan individual income tax, and active-duty military pay earned by Michigan residents is also not taxed by the state.
Eligibility: Recipients of U.S. Armed Forces (including Reserve and National Guard) retirement pay; active-duty pay exemption applies to Michigan residents on active duty.
Estimated value: Full exemption of military retirement pay from state income tax
How to apply: Deduct qualifying military retirement benefits on your Michigan individual income tax return (Schedule 1) when filing. See Treasury guidance for details.
Michigan Veterans Trust Fund Emergency Grants
One-time emergency financial assistance to help veterans and their families overcome an unforeseen, temporary financial hardship such as utility bills, home repairs, or mortgage assistance.
Eligibility: Veteran (or spouse) with at least 180 days of active service and an honorable discharge who served during a wartime era (or holds a qualifying Expeditionary Medal); peacetime-era veterans 65+ with 180 days of service also qualify under the 65+ Peacetime Program. Generally limited to once per two-year period.
Estimated value: One-time emergency grant (amount based on need)
How to apply: Apply through the Michigan Veterans Trust Fund county committee serving your county of residence.