Property Tax Exemption

A property tax exemption is available for disabled veterans. Michigan law provides an exemption from property taxes for real property owned and used as a homestead by a qualifying disabled veteran who served in the United States Armed Forces (including reserve components) and who was discharged or released under honorable conditions.

Qualifying Criteria

The law defines a “disabled veteran” as a veteran who is a resident of Michigan and who meets one of the following criteria:

  1. 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.
  2. 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.
  3. Has been rated by the United States Department of Veterans Affairs as individually unemployable.

Michigan law also allows an unremarried surviving spouse of a qualifying disabled veteran to retain and claim the exemption if the disabled veteran was eligible for the exemption immediately before the veteran’s death. The exemption continues for the surviving spouse as long as the surviving spouse does not remarry. The exemption applies to any property used and owned as a homestead by the surviving spouse and can include homestead property which was acquired after the death of the veteran.

Applications

The disabled veteran (or the unremarried surviving spouse) must file Form 5107, Affidavit for Disabled Veterans Exemption (PDF), with their local Assessing Department at their municipality or the Equalization Department before Dec. 31 in the year in which the exemption is requested. Property owners are encouraged to apply early in the year, otherwise revised tax billings/refunds can become necessary. Official documentation from the United States Department of Veterans Affairs establishing that the veteran meets one or more of the qualifying criteria listed above must be provided with the completed Form 5107. Until 2026, it is necessary to apply for this exemption annually. A disabled veteran who has been receiving the exemption must still file again for 2025 to get the exemption for 2025. Beginning in 2026, exemptions which were previously granted will remain in place until rescinded by the property owner or denied by the assessing unit.

Rescission and Revocation of the Exemption

Property owners must use Form 6054, Request to Rescind Disabled Veterans Exemption (PDF), to rescind the exemption with their local Assessing Department at their municipality or the Equalization Department. The property owner is responsible for filing Form 6054 within 45 days of (1) the date they cease to use and own as a homestead the property which was receiving the exemption or (2) the date they no longer meet the qualifications to receive the exemption. If it becomes necessary for officials to deny the exemption, the property owner will be liable for the taxes, plus penalties and interest; the exemption can be denied for the current year and the three immediately preceding years.