Michigan Veteran DMV Benefits | Free Plates at 50%+, $0 Registration & Hunting License Waiver

Michigan is home to approximately 580,000 veterans — one of the largest veteran populations in the Midwest — concentrated in the Detroit metro area, Grand Rapids, Lansing, Flint, and the Upper Peninsula. Major military installations include Selfridge Air National Guard Base in Harrison Township (home of the 127th Wing, the largest combat-capable Air National Guard wing in the country), Fort Custer Training Center in Augusta near Battle Creek, Camp Grayling (the largest National Guard training area east of the Mississippi), and Alpena Combat Readiness Training Center.

Michigan’s veteran benefit system has several features that most guides explain incorrectly or incompletely: the DV plate was expanded in 2024 to include 50–99% SC veterans — creating a two-tier system where most guides still only describe the 100% tier; the ISA parking tab is a separate adhesive sticker that must be separately requested and affixed to the plate — the DV plate alone does NOT include ISA parking; the property tax exemption’s “no annual reapplication” rule under MCL 211.7c became effective January 1, 2025 — meaning veterans who filed in 2025 are fully exempt from reapplication forever going forward — but many guides still say “annual application required” using pre-2025 information; the exemption is prorated when a home is purchased mid-year — one of the most important benefits for newly arriving veterans that every guide skips; the surviving spouse can now move and claim the exemption on a NEW property after the veteran dies — a 2023 law change that dramatically expands protection; the “birthday expiration” system for DV plate renewals — plates expire on the veteran’s birth month, not a fixed calendar date; and the Michigan Veterans Trust Fund emergency grants go up to $2,500 for genuine financial emergencies with no repayment required.

This guide covers every benefit, every form, and every rejection scenario Michigan veterans face.

The Two-Tier DV Plate System — The 2024 Expansion Most Guides Miss

Michigan’s disabled veteran plate was significantly expanded in October 2024 — and most guides, websites, and even some Michigan SOS offices still only describe the old single-tier system.

Tier 1 — 100% P&T SC or IU (Free Plates + Free Registration)

An honorably discharged Michigan veteran with a VA disability rating of 100% P&T is exempt from paying taxes on his or her home.

At 100% P&T SC or IU (Individual Unemployability paid at 100% rate), the DV plate is completely free — no plate fee, no annual registration fee, no renewal fee. The plate expires on the veteran’s birth month each year (not a fixed calendar date), and the annual renewal sticker is also free.

Additional vehicles: Only one vehicle receives the full free registration benefit. Additional vehicles with DV plates pay the standard base registration fee.

Tier 2 — 50–99% SC (Free Plates; Standard Registration Fees)

The bill expands the eligibility of the disabled veteran registration plate to partially disabled veterans. Specifically, it would expand eligibility to veterans with a service-connected disability of 50% or more.

At 50–99% SC, veterans now qualify for the Michigan DV plate designation — but they pay standard annual registration fees. The plate is issued free (no plate issuance fee), but annual registration renewal costs apply.

What this means in practice:

• A veteran with 60% SC can now display “Disabled Veteran” plates on their vehicle
• They save the plate issuance fee (typically $15–$25 one-time) but pay full registration annually
• The ISA parking tab (see below) is separately available if mobility disability is certified

The Misdemeanor Plate Misuse Warning:

Misdemeanor using DV plate when veteran not eligible; fine up to $500 or 30 days.

Michigan takes DV plate misuse seriously — using a DV plate when the veteran no longer qualifies (disability rating reduced, veteran deceased and family continues using plates) is a misdemeanor with up to $500 fine or 30 days in jail.

Apply at: Any Michigan Secretary of State (SOS) branch office — in person Documents: VA Summary of Benefits Letter showing 50%+ SC disability + DD-214 + vehicle registration Michigan SOS phone: 888-767-6424 Online SOS: michigan.gov/sos

The ISA Parking Tab — Completely Separate From the DV Plate

ISA parking tab: SEPARATE adhesive tab, requires separate Disability Parking Placard Application + physician certification.

This is Michigan’s most important DV plate distinction and the source of the most citations. The DV plate and ISA parking access are two completely separate things in Michigan:

DV plate alone: Vehicle recognition, potential registration savings — NO handicapped parking access

ISA tab + DV plate: Full handicapped parking access anywhere in Michigan and nationwide

How to get the ISA tab:

1. Complete the Michigan Disability Parking Placard Application at michigan.gov/sos
2. Have a licensed physician, nurse practitioner, or physician assistant complete the medical certification section confirming a permanent qualifying mobility disability
3. Submit to your SOS branch office
4. An adhesive ISA tab is affixed to the DV plate at issuance

The physician certification requirement: The mobility disability must be permanent and specifically limit walking ability — the physician must certify one of the qualifying conditions (inability to walk 200+ feet without stopping, requirement for assistive devices, loss of limb, etc.).

For veterans with 100% SC PTSD/hearing loss/tinnitus only: No ISA tab qualifies. The DV plate provides recognition and registration savings but not handicapped parking access. If these veterans also have any secondary condition affecting mobility, that condition can qualify for the ISA tab through physician certification.

The Birthday Expiration System — Michigan’s Unique Renewal Schedule

Plates expire on the veteran’s birth month, not a fixed calendar date.

Michigan’s DV plate renewal follows the veteran’s birth month — not a calendar year cycle. A veteran born in September renews their DV plate in September every year. This “birthday” registration system is Michigan’s standard across most personal vehicles, but it creates specific confusion for DV plate holders:

When moving to Michigan from another state:

• Michigan will issue DV plates with expiration in the veteran’s birth month
• If the veteran just had their birth month pass, they may have nearly 12 months until first renewal
• If birth month is approaching, renewal will come quickly after initial issuance

Joint ownership: The DV plate requires the veteran to be the registered owner or joint owner with an immediate family member. If the vehicle is jointly titled and the veteran’s birth month arrives, the renewal must be processed at the SOS branch.

The Property Tax Exemption — MCL 211.7b + The 2025 No-Reapplication Change

Michigan’s disabled veteran property tax exemption is one of the most complete in the Midwest — full 100% elimination of all property taxes on the homestead — and a major 2025 law change now makes it permanent once granted.

The Three Qualification Paths

MCL 211.7b defines “Disabled Veteran” as a veteran who is a resident of this state 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.

• Path 1: 100% P&T SC — most common
• Path 2: VA Specially Adapted Housing grant recipient — SAH or SHA grant holders qualify regardless of disability percentage beyond what qualified for the grant
• Path 3: IU/TDIU — veterans paid at 100% rate for individual unemployability qualify even without a 100% scheduler rating. The IU criteria: one SC disability rated at 60%+ OR two+ SC disabilities with at least one at 40%+ and combined rating of 70%+

The MCL 211.7c No-Reapplication Rule — Effective 2025

Under MCL 211.7c, beginning January 1, 2025, the exemption, once granted, remains in effect without subsequent annual reapplication by the disabled veteran or unremarried surviving spouse. The exemption continues until rescinded by the property owner or denied by the assessor. Veterans Guardian

This is the most important 2025 change in Michigan veteran benefits. Before January 1, 2025, Michigan required annual reapplication for the property tax exemption — veterans had to file Form 5107 with their local township or city assessor every year. Starting in 2026, if the exemption was granted in 2025 or any prior year, it continues automatically.

The 2024/2025 transition nuance:

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 City Assessor.

Veterans who filed in 2025 do NOT need to file again for 2026. Veterans who never filed must apply once using Form 5107.

How to rescind the exemption (when moving or status changes):

The disabled veteran or un-remarried surviving spouse must file Form 6054 with the assessor for the city or township within 45 days of any of the following: 1) They cease to use and own as a homestead the property for which the exemption was granted. 2) They no longer meet the qualifications under MCL 211.7b to receive the exemption. Usmilitary

Veterans who sell their home, move, or have their disability rating reduced must file Form 6054 within 45 days. Failure to rescind can create back-tax liabilities.

The Proration Rule for New Home Purchases

The exemption is prorated, both in the year of purchase by the disabled veteran and the year of sale by the disabled veteran.

When a veteran with 100% P&T SC buys a Michigan home mid-year, the property tax exemption applies from the date of purchase — not from January 1 of the following year. A veteran who closes on a home in July 2026 gets approximately 6 months of property tax exemption for 2026 — reflected as a credit or cancellation of the remaining 2026 taxes.

This is critical for veterans relocating to Michigan: Apply for Form 5107 immediately upon purchase — include closing documents to support the proration calculation. The assessor must cancel taxes for the portion of the year after the purchase date.

The 2023 Surviving Spouse Can Move Provision

2023 PA 150, Senate Bill 176: An unremarried surviving spouse can move and claim the exemption on the newly purchased home.

Before 2023, the property tax exemption transferred to the surviving spouse only if they remained in the same home. The 2023 law change allows the unremarried surviving spouse to:

• Sell the veteran’s home
• Purchase a new Michigan home
• Apply the exemption to the NEW home

This is significant — surviving spouses who wanted to downsize, move closer to family, or relocate to a different Michigan city can now do so without losing the property tax exemption.

Veterans Exemption — Rev. 03-26) Download at: michigan.gov/treasury Submit to: Local city or township assessor’s office (NOT county, NOT state tax commission) Deadline: January 1 through December 31 of the year the exemption is claimed (file as early as possible)

Military Retirement Income Tax — Phased Exemption by Age

Michigan’s military retirement tax system uses an age-based phase-in rather than a flat full exemption.

Michigan Taxes on Military Retired Pay: Michigan offers military retirees a deduction on retirement pay. For taxpayers born after 1952 who are under age 67 and not disabled, the maximum retirement income deduction is $20,000 for single filers ($40,000 for joint filers). Retired taxpayers who are age 67 or older or disabled (including those receiving Social Security disability insurance benefits) can deduct all qualifying retirement income, including military retirement pay.

The age and disability structure:

Annual savings for a 100% P&T SC veteran (any age) with $42,000 military retirement: Michigan’s income tax rate is 4.25% (2026 — reduced from 4.5%). Full exemption: $42,000 × 4.25% = $1,785/year saved.

Michigan has been reducing its income tax rate — targeted further reductions toward 3.9% by 2027 are under legislative consideration.

Active duty pay: Michigan Taxes on Active Duty Military Pay: Active duty pay is included in Michigan’s taxable income but there is a deduction available. Active military service members can subtract the amount of their active duty pay from their Michigan taxable income.

State Parks — Free Lifetime for DV/Ex-POW/MOH Plate Holders

Veterans who are 100% permanently and totally disabled receive free entry to Michigan state parks. Veterans with valid Ex-Prisoner of War, Medal of Honor, or Disabled Veteran license plates receive free lifetime access to state parks. Veterans DMV Guide

The DV plate = free lifetime state parks access — not just the disability status but the specific plate display provides this benefit.

Michigan has 103 state parks — from the great sand dunes of Sleeping Bear Dunes National Lakeshore area to the remote wilderness parks of the Upper Peninsula. Standard Michigan state park vehicle permit: $37/year or $16/day.

The Quiet Fireworks camping program:

The Michigan Department of Natural Resources and MVAA offer designated “Quiet Fireworks” camping options at select campgrounds for veterans who prefer to avoid holiday fireworks displays. Contact DNR for participating locations. Veterans DMV Guide

This PTSD-sensitive camping program — a joint DNR/MVAA initiative — designates specific campgrounds as fireworks-free zones around July 4th for veterans with noise sensitivity. Michigan is one of very few states with a formal state park program specifically designed around veteran PTSD needs.

Outdoor Adventures Program: Michigan DNR and MVAA offer outdoor recreation opportunities specifically designed for wounded veterans and individuals with health challenges. Activities take place at Sharonville State Game Area and Camp Liberty, focusing on recovery through connecting with nature. Veterans DMV Guide

Michigan Veterans Trust Fund — Emergency Grants Up to $2,500

The intent of the Emergency Grant Program is to assist veterans in a financial emergency. When short-term financial hardships occur, the grant can provide the needed funds. Applicants are expected to make the necessary steps to meet their future financial needs. Army

The Michigan Veterans Trust Fund (MVTF) provides emergency financial assistance grants to qualifying Michigan veterans — non-repayable, determined at the county committee level.

Eligibility: Michigan resident; honorably discharged; financial emergency not caused by the veteran’s own negligence; must have served at least 180 days on active duty (or fewer if SC discharge)

Grant amount: Up to $2,500 for genuine financial emergencies.

Apply through: Your county MVTF committee — find yours at michiganveterans.com/find-benefits-counselor Or: Fill out the Emergency Assistance Form at michiganveterans.com/mvaaEmergencyAssistanceForm Note: The Governor-appointed Board of Trustees reviews applications monthly — allow processing time.

Michigan Military Family Relief Fund (separate): For Guard/Reserve members called to active duty — emergency assistance for families facing financial hardship during deployment. Contact: Michigan DMVA at 517-481-7644 or dmva-mfrf@michigan.gov

Children and Surviving Spouses Tuition Waiver

Michigan offers a tuition waiver for children and spouses of veterans. The Michigan Veterans Trust Fund provides education benefits for children and spouses of those who were killed in action, became 100% permanently and totally disabled, are a prisoner of war, or are missing in action. Children must be between the ages of 16 and 26 and be a Michigan resident. The waiver covers tuition and fees at any Michigan public community college, public four-year college, or university. University of Southern Indiana

Annual value at University of Michigan: Resident tuition + fees approximately $16,000/year. At Michigan State University: approximately $15,500/year. At Michigan community colleges: approximately $4,000–$6,000/year.

Surviving spouse: No age limit for spouses — waiver continues as long as unremarried.

Apply through: Michigan Veterans Affairs Agency (MVAA) at michigan.gov/mvaa or call 800-MICH-VET (800-642-4838)

Rejection Scenarios Specific to Michigan

Rejection #1 — DV Plate ISA Parking Without ISA Tab

A veteran with 70% SC gets Michigan DV plates in 2025 after the expansion. They park in an ISA handicapped space relying on the DV plate. They receive a citation.

Fix: ISA parking tab: SEPARATE adhesive tab, requires separate Disability Parking Placard Application + physician certification. Michigan DV plates do NOT include ISA parking access by default — regardless of disability percentage. To park in handicapped spaces, the veteran must separately obtain the ISA tab through a Disability Parking Placard Application with physician certification of a permanent mobility disability. Both the DV plate AND the ISA tab must be present on the vehicle for legal handicapped parking.

Rejection #2 — Property Tax: Annual Reapplication After 2026

A veteran who received the property tax exemption in 2025 files a new Form 5107 in February 2026, assuming annual reapplication is still required. While this causes no harm, many veterans unnecessarily spend time on a paperwork process that is no longer needed.

Fix: Under MCL 211.7c, beginning January 1, 2025, the exemption, once granted, remains in effect without subsequent annual reapplication. The exemption continues until rescinded by the property owner or denied by the assessor. Veterans who filed in 2025 or earlier do NOT need to refile for 2026 or subsequent years. The exemption continues automatically. The only action needed is filing Form 6054 within 45 days IF circumstances change (selling home, disability rating reduced, remarriage of surviving spouse).

Rejection #3 — Property Tax: IU Rating Not Presented Correctly

A veteran with 70% SC combined rating plus IU designation applies for the property tax exemption. The assessor denies the application because the VA letter shows 70% not 100%.

Fix: Under this program, veterans may receive compensation at the 100% rate even though their service-connected disability is not rated at 100%. The Veterans Administration determines eligibility; to be eligible a veteran must prove they are unable to maintain substantially gainful employment because of their service-connected disability. In addition, they must have one service-connected disability rated at 60% or more or two or more service-connected disabilities with at least one rated at 40% or more with a combined rating of 70% or more. Individuals filing the affidavit for the exemption under criteria c) must provide a copy of the letter from the Veterans’ Administration indicating they are individually unemployable. IU/TDIU veterans qualify but must provide the specific VA letter stating they are “individually unemployable” — not just a letter showing the combined disability percentage. Download the IU award letter from VA.gov specifically. Present both the combined rating letter AND the IU determination letter to the assessor with Form 5107.

Rejection #4 — 50% SC Veteran Expects Free Registration With New 2024 DV Plate

A veteran with 55% SC gets DV plates under the 2024 expansion expecting free annual registration like their friend with 100% P&T SC. They receive a registration renewal bill.

Fix: The bill expands the eligibility of the disabled veteran registration plate to partially disabled veterans with a service-connected disability of 50% or more. Under the 2024 expansion, 50–99% SC veterans get the DV plate issued free (no plate issuance fee) but pay standard annual registration fees. Only 100% P&T SC or IU veterans at 100% rate receive the full registration fee waiver. The 50–99% tier provides the DV designation and plate at no cost, with full standard registration fees applying annually. Government of Indiana

Rejection #5 — Surviving Spouse Cannot Move After Veteran’s Death (Pre-2023 Understanding)

A surviving spouse was told by their county assessor that they must stay in the same home to keep the property tax exemption after their veteran spouse died. They sell the home and lose the exemption.

Fix: 2023 PA 150, Senate Bill 176: An unremarried surviving spouse can move and claim the exemption on the newly purchased home. The 2023 law change explicitly allows the surviving spouse to purchase a new Michigan home and apply the exemption there. File a new Form 5107 at the assessor’s office for the new property immediately upon purchase, with the veteran’s most recent VA P&T letter and marriage/death certificate documentation. This law change took effect in 2023 — any surviving spouse who lost the exemption by moving since 2023 should contact the Michigan State Tax Commission for guidance on retroactive claims.

Rejection #6 — Form 5107 Filed at County Not City/Township Assessor

A veteran files their Form 5107 at the Wayne County Assessor’s office. The county office tells them the form must go to their city or township assessor.

Fix: Submit the completed form with required documentation to the local assessor in the city or township where the property is located. Michigan’s property tax exemption is administered at the city or township level — not county. Every Michigan city and township has its own assessor. Find your local assessor at michigan.gov/taxes or by contacting your city or township government directly. Form 5107 filed at the county level will not be processed. Usmilitary

Application Process — Step by Step

For DV Plates (50%+ SC — Tier 2 or 100% P&T — Tier 1)

At any Michigan Secretary of State branch office — in person:

• VA Summary of Benefits Letter showing SC disability percentage (50%+ for Tier 2; P&T for Tier 1)
• DD-214 with honorable discharge
• Vehicle registration or title

For ISA tab (separate step): Complete Michigan Disability Parking Placard Application with physician certification of permanent mobility disability at SOS office

SOS Phone: 888-767-6424 | Website: michigan.gov/sos

For Property Tax Exemption (100% P&T, IU, or SAH Grant)

File Form 5107 with your local city or township assessor — anytime January 1 through December 31

Documents:

• Form 5107 (Michigan Treasury — Rev. 03-26, download at michigan.gov/treasury)
• VA letter confirming 100% P&T, IU determination, or SAH grant certificate
• DD-214
• If new home purchase: include closing documents for proration

After 2025: One-time filing — no annual reapplication needed unless circumstances change

If moving: File Form 6054 within 45 days at the current property’s assessor to rescind; File new Form 5107 at new city/township assessor

For Veterans Trust Fund Emergency Grant

Find your county MVTF committee: michiganveterans.com/find-benefits-counselor OR: Complete online form at michiganveterans.com/mvaaEmergencyAssistanceForm MVAA Phone: 800-MICH-VET (800-642-4838)