MI · Tax Year 2026
How Michigan taxes Social Security, pensions, 401(k)/IRA withdrawals, and military retirement pay in 2026.
Qualifying combined retirement deduction $67,610 single or $135,220 joint; certain public pensions have uncapped exemptions
2026 phase-in complete regardless of birth year
Additional Notes
Not an unlimited exemption; public pensions for taxpayers born before 1946 exempt from general cap
Does Michigan tax Social Security benefits?
No. Michigan does not tax Social Security retirement benefits.
Does Michigan tax pension income?
Partially. Michigan provides exemptions for certain types of pension income — often public, government, or military pensions — while private pensions may be partially or fully taxable. See eligibility details above.
Does Michigan tax 401(k) and IRA withdrawals?
Yes, traditional 401(k) and IRA withdrawals are generally taxable in Michigan. However, exclusions or credits may apply depending on your age and income — review the details above.
Is Michigan a tax-friendly state for retirees?
It depends on your income mix. Michigan offers some retirement income relief, but the rules vary by income type and eligibility. Review the details above and consider consulting a tax professional for your specific situation.
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Data Source
Official Michigan state tax authority guidance. Tax year 2026. Some annually indexed thresholds may not yet be finalized — confirm with the state revenue department before filing.
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Data reflects tax year 2026 rules sourced from official Michigan state tax authorities. This page is for informational purposes only — always confirm current rules with the state revenue department or a qualified tax professional before making financial or relocation decisions.