VetUnlock
State Benefit·Michigan·🏛️Tax Benefits

Military Retirement Pay Tax Exemption

Full exemption of military retirement pay from Michigan individual income tax.

Verified May 12, 2026againstmichigan.gov

At a glance

Benefit type
Tax Benefits — Michigan
Who it's for
Veterans, Active Duty, National Guard, Reservists
VA rating needed
No rating requirement
Estimated value
Full retirement pay exemption
Where it applies
Michigan
Last verified
May 12, 2026

What is Military Retirement Pay Tax Exemption?

Military Retirement Pay Tax Exemption is a Michigan tax benefits benefit for veterans, active duty, national guard, reservists. Full exemption of military retirement pay from Michigan individual income tax. The listed value is Full retirement pay exemption.

Who qualifies

VeteransActive DutyNational GuardReservists
  • Available to any veteran
  • Michigan residency

How to apply

Apply through the official Michigan agency.

Open application

Who is eligible

Eligibility

Any military retiree receiving retirement pay from any branch of the U.S. Armed Forces (including Reserve and National Guard retirement). No disability rating required. Must file Michigan state income taxes.

Active-duty military pay is also exempt.

How to apply for Military Retirement Pay Tax Exemption

How to claim

Deduct on Schedule 1 of Michigan income tax return; report on Schedule W.

Open applicationVerify at official source

Verified information & sources

Last verified: May 12, 2026

Official source: michigan.gov

Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.

How VetUnlock verifies benefits →

Frequently asked questions about Military Retirement Pay Tax Exemption

Who qualifies for Military Retirement Pay Tax Exemption?▾
Military Retirement Pay Tax Exemption is for Veterans, Active Duty, National Guard, Reservists; available to any veteran; michigan residency. See the eligibility details on this page and confirm with the official source before applying.
How much is Military Retirement Pay Tax Exemption worth?▾
The listed value is Full retirement pay exemption. Amounts can change — confirm the current figure at the official source linked on this page.
How do I apply for Military Retirement Pay Tax Exemption?▾
Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.
Where can I verify Military Retirement Pay Tax Exemption?▾
Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.

Other Michigan Tax Benefits

Disabled Veterans Property Tax Exemption

Complete exemption from property taxes on homestead for 100% permanently and totally disabled veterans.

100% property tax exemption

See every benefit you qualify for in Michigan

Get a personalized list of federal, state, and local veteran benefits based on your service history, disability rating, and Michigan residency — in under 2 minutes.

Find My Michigan Benefits