Michigan Disabled Veteran Property Tax Exemption

There is no dollar cap and no percentage: the statute exempts the homestead from the collection of taxes under the General Property Tax Act, and each local taxing unit bears the loss of its portion of the taxes. A rating that does not fit one of the three criteria below gets nothing under this section, and the section as read has no income or home-value test.

• Real property used and owned as a homestead by a disabled veteran, or by the surviving spouse of one, is exempt from the collection of taxes under the General Property Tax Act.

  “Real property used and owned as a homestead by either of the following individuals is exempt from the collection of taxes under this act:”

• Upon granting the exemption, each local taxing unit bears the loss of its portion of the taxes upon which the exemption has been granted.

  “Upon granting the exemption under this section, each local taxing unit shall bear the loss of its portion of the taxes upon which the exemption has been granted.”

• Treasury’s Form 5107 says a homestead is generally defined as any dwelling with its land and buildings where a family makes its home.

  “Homestead is generally defined as any dwelling with its land and buildings where a family makes its home.”

The veteran must be a Michigan resident and must meet one of three criteria set by the VA. A veteran is someone who served in the Armed Forces, including the reserve components, and was discharged or released under honorable conditions. The application needs the VA letter or certificate that proves the criterion; Form 5107 lists which one to attach.

Legal title must be held by the veteran alone or jointly with the veteran’s spouse.

• A disabled veteran is a veteran who is a resident of this state (Michigan) and who meets 1 of the following criteria, listed below.

  “"Disabled veteran" means a veteran who is a resident of this state and who meets 1 of the following criteria:”

• The VA has determined the veteran to be permanently and totally disabled as a result of military service and entitled to veterans’ benefits at the 100% rate.

  “Has been determined by the United States Department of Veterans Affairs to be permanently and totally disabled as a result of military service and entitled to veterans' benefits at the 100% rate.”

• The veteran has a certificate from the VA certifying that the veteran is receiving or has received pecuniary assistance due to disability for specially adapted housing.

  “Has a certificate from the United States Department of Veterans Affairs certifying that the veteran is receiving or has received pecuniary assistance due to disability for specially adapted housing.”

• The VA has rated the veteran as individually unemployable.

  “Has been rated by the United States Department of Veterans Affairs as individually unemployable.”

• A veteran is an individual who served in the Armed Forces, including the reserve components, and was discharged or released under honorable conditions.

  “"Veteran" means an individual who served in the United States Armed Forces, including the reserve components, and was discharged or released under honorable conditions.”

• For a veteran, legal title to the property must be held solely by the veteran or jointly by the veteran and the veteran’s spouse.

  “For an individual described in subsection (1)(a), legal title to the property is held solely by that individual or jointly by that individual and that individual's spouse.”

The exemption can continue for the surviving spouse of a disabled veteran who was eligible immediately before death, and it can follow the spouse to a different homestead bought after the veteran’s death. It ends if the spouse remarries. For a surviving spouse the statute requires legal title to be held by the spouse alone.

• A surviving spouse of a disabled veteran who, immediately before death, was eligible for the exemption keeps it as long as the surviving spouse does not remarry, including on a homestead acquired after the veteran’s death.

  “A surviving spouse of a disabled veteran who, immediately before death, was eligible for the exemption under this section. An exemption under this subdivision continues as long as the surviving spouse does not remarry, and the exemption applies to any property used and owned as a homestead by the surviving spouse, including homestead property acquired after the decedent's death.”

• For a surviving spouse, legal title to the property must be held solely by the surviving spouse.

  “For an individual described in subsection (1)(b), legal title to the property is held solely by that individual.”

File Form 5107, the State Tax Commission affidavit, with the assessor of the city or township where the property is located, not with the state. Attach the VA letter or certificate. For a newly bought home add the closing documents, which Michigan uses to prorate the first year. Michigan’s statute lets the application be filed after January 1 and before December 31 of the year for which the exemption is claimed; confirm the date your assessor uses.

Since the 2025 tax year an approved exemption stays in place without a new application each year. You must file the Treasury form that rescinds it within 45 days after you stop using and owning the home as a homestead or no longer qualify. The assessor must audit under a program set by the State Tax Commission and may not audit the same property more than once every 3 years without a reasonable belief that it is ineligible. A denial or an audit finding can reach back the current year and the 3 preceding years, with interest at 1% per month, and can be appealed to the residential and small claims division of the tax tribunal within 35 days of the notice.

• To obtain the exemption, the veteran, the surviving spouse or a legal designee must file an application with the assessing officer for the local assessing unit after January 1 and before December 31 of the calendar year for which the exemption is claimed.

  “must file an application, in a form and manner prescribed by the state tax commission, showing the facts required by this section and a description of the real property with the assessing officer for the local assessing unit after January 1 and before December 31 of the calendar year for which the exemption is claimed.”

• Submit the completed Form 5107 with the required documentation to the local assessor in the city or township where the property is located.

  “Submit the completed form with required documentation to the local assessor in the city or township where the property is located.”

• An exemption granted as to taxes levied on or after January 1, 2025 remains in effect, without subsequent reapplication, until it is rescinded by the individual or denied by the assessor.

  “An exemption granted under this section as to taxes levied on or after January 1, 2025 remains in effect, without subsequent reapplication, until it is rescinded by the individual who was granted the exemption or is denied by the assessor, as provided in section 7c.”

• The individual must file a form rescinding the exemption with the local assessing unit within 45 days after ceasing to use and own the property as a homestead or no longer meeting the qualifications.

  “The individual shall file with the local assessing unit, in a form and manner prescribed by the state tax commission, a form rescinding the exemption within 45 days after the occurrence of either of the following:”

• The audit must not occur on a property more than once every 3 years unless there is a reasonable belief that the property is ineligible.

  “The audit must not occur on a property more than once every 3 years unless there is a reasonable belief that the property is ineligible for the exemption.”

• The assessor may deny a claim for the current year and for the 3 immediately preceding calendar years.

  “The assessor may deny a claim for exemption for the current year and for the 3 immediately preceding calendar years.”

• A denial may be appealed to the residential and small claims division of the tax tribunal within 35 days after the date of the notice.

  “the denial may be appealed to the residential and small claims division of the tax tribunal within 35 days after the date of the notice”

• If closing or other purchase documents are not provided, the first-year exemption is prorated: the local treasurer divides the total property taxes levied in the year by 365 and multiplies by the number of days the individual will use and own the property as a homestead.

  “If closing or other purchase documents are not provided for the proration under subdivision (a), based on a proration under which the local treasurer calculates the amount of property taxes levied in the current tax year to be exempted by dividing the total property taxes levied in the year by 365 and then multiplying that number by the number of days the individual will use and own the property as a homestead.”

• If the closing documents are not provided, the current-year exemption is prorated by the days the claimant owned and occupied the home as a homestead, even if those documents make the claimant pay all of the year’s property taxes.

  “If these documents are not provided, the current-year property tax exemption will be prorated based on the number of days of the calendar year that the claimant owned and occupied the home as a homestead, even if the closing or other purchase documents require the claimant to pay all property taxes for the current calendar year.”

The history line of section 7b shows its latest amendment as 2023 Act 150 and section 7c was added by 2023 Act 151, both effective October 19, 2023; together they carry the end of yearly reapplication for taxes levied from 2025. The copy of section 7b read for this page is an Internet Archive capture of December 7, 2025; the 7c capture of April 26, 2026 is marked complete through Public Act 7 of 2026. Treasury’s page lists Form 5107 (Rev. 03-26) and a memo approved April 7, 2026 on Form 5107 updates and proration examples that this page did not read, so check it and your assessor for newer instructions.