Michigan SCRA Benefits: Property Shield & Tax-Free Pay
Part of: The Complete Guide to the SCRA
Michigan hosts Selfridge Air National Guard Base, Fort Custer, and Camp Grayling, the largest National Guard training site in the country. Its law gives Michigan service members a creditor shield on state duty and leaves their active-duty pay untaxed.
The two protections Michigan adds
| Protection | Federal SCRA | Michigan |
|---|---|---|
| Property shield on state duty | Federal duty only | ✓ Exempt from levy and seizure (MCL 32.517) |
| Civil arrest privilege | Federal protections | ✓ MCL 32.517, during service and 6 months after |
| 6% cap, leases, foreclosure | ✓ Full strength | Federal framework |
| State income tax on active-duty pay | Depends on state | ✓ None. Exempt |
The property shield: MCL 32.517
The Michigan Military Act does something the federal SCRA reserves for federal duty: it protects Guard members on state orders. Under MCL 32.517, a member on active state service of more than seven days, ordered by the governor, has their separate property exempted from levy of execution, seizure, or attachment for debts contracted before or during the service, plus a civil arrest privilege. The protection lasts through the service and for six months after. If you are Michigan Guard on a state activation, that is a real shield against a creditor moving on your property while you serve.
The tax side: zero on active-duty pay
Michigan exempts active-duty military pay from state income tax. If Michigan is your home of record, your active-duty pay is not taxed, and nonresidents stationed here owe nothing on military pay. Stack it with the tax-state election when you are assigned elsewhere.
The Michigan playbook
- Confirm your active-duty pay is exempt on your Michigan return.
- Work the federal money kit: the 6% cap with letters out, foreclosure shields, and refund audits.
- Michigan Guard on governor-ordered state duty: MCL 32.517 shields your property from creditors. Invoke it if a debt collector moves.
- Lease exit: federal § 3955, written notice plus orders, end date via the calculator.
- For a live dispute, the nearest installation or Guard legal office handles SCRA and MCL 32.517 claims; bring your orders and your LES.
The law behind this: MCL 32.517
Michigan Military Act: privilege from arrest; exemption of property from seizure: read the statute.
Frequently asked questions
What does the Michigan Military Act protect?
Under MCL 32.517, an officer or enlisted member on active state service of more than seven days, ordered by the governor, gets a privilege from arrest in civil matters and, importantly, has their separate property exempted from levy of execution, seizure, or attachment for debts contracted before or during service. That protection runs during service and for six months after it ends.
Does Michigan tax military pay?
No. Active-duty military pay is exempt from Michigan individual income tax. If Michigan is your home of record, your active-duty pay is not taxed by the state. Nonresidents stationed in Michigan are not taxed on military pay either.
How do I break a lease in Michigan on orders?
Use the federal SCRA. Michigan does not add a more generous military lease statute, so the federal 50 U.S.C. § 3955 right is your tool: written notice plus a copy of your orders, with the lease ending about 30 days after the next rent due date.
Where does a Michigan Guard member start?
Confirm your active-duty pay is exempt on your Michigan return. Run the federal SCRA for debt and housing. And if you are Michigan Guard on governor-ordered state duty, know that MCL 32.517 shields your property from creditors. For a live dispute, base legal at Selfridge, Fort Custer, or Camp Grayling does SCRA work at no cost, so walk in with your orders.
Sources
Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.