Michigan retirement taxes at a glance
| Income | Taxed? | How |
|---|---|---|
| Social Security | No | Subtracted in full. |
| IRA withdrawals | Partly | Deductible within the cap if taken at 59½ or later (or for death, disability or 72(t) payments). Early withdrawals are taxable. |
| 401(k), 403(b) and 457(b) | Partly | Deductible within the same cap. |
| Private pensions | Partly | Deductible within the same cap. |
| Government pensions | Partly | Within the same cap; for people born before 1946, public pensions are deductible without limit. |
| Military retirement pay | No | Fully exempt, with no age or amount limit. |
| Roth conversions and Roth withdrawals | Partly | A conversion at 59½ or later counts as retirement income within the cap; qualified Roth withdrawals are not taxed. |
What retirees pay in Michigan
Five households, priced on the same 2026 tax engine Killion’s planner uses: Social Security plus withdrawals from a traditional IRA, the standard deduction, and every age break the state and federal returns give. Estimates for planning, not tax advice.
| Household | Social Security | IRA withdrawals | Michigan tax | Federal tax |
|---|---|---|---|---|
| Single, 67 | $24,000 | $20,000 | $0 (0.0%) | $0 |
| Single, 67 | $30,000 | $50,000 | $0 (0.0%) | $6,016 |
| Married, both 67 | $42,000 | $40,000 | $0 (0.0%) | $1,295 |
| Married, both 67 | $50,000 | $100,000 | $0 (0.0%) | $10,904 |
| Single, 62, before Social Security | $0 | $60,000 | $0 (0.0%) | $5,020 |
Michigan compared with other states
The same two households in each state we cover. In the nine states with no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming) both pay $0 of state tax.
| State | Married, 67: $42,000 Social Security, $40,000 IRA | Single, 67: $30,000 Social Security, $50,000 IRA |
|---|---|---|
| Arizona | $0 | $646 |
| California | $0 | $815 |
| Colorado | $0 | $1,139 |
| Maryland | $0 | $964 |
| Massachusetts | $1,490 | $2,245 |
| Michigan | $0 | $0 |
| North Carolina | $579 | $1,486 |
| Ohio | $347 | $682 |
| Pennsylvania | $0 | $0 |
| Virginia | $0 | $1,325 |
2026 rates and senior breaks
Michigan’s rate: Flat 4.25%, with a $5,900 personal exemption in 2026.
- Retirement deduction of $67,610 single, $135,220 joint for 2026, per return and indexed.
- From 67, a standard deduction of $20,000 single or $40,000 joint against all income is an alternative.
Local taxes: City income taxes, including Detroit’s, exempt pensions and retirement benefits; IRA withdrawals before 59½ can be taxed.
What people get wrong about Michigan
- The cap is per return, not per person.
Tax on a 401(k) withdrawal in Michigan
A single filer aged 60 with no other income, taking one withdrawal in 2026:
| Withdrawal | Federal | Michigan |
|---|---|---|
| Tax on a $25,000 401(k) withdrawal | $890 | $0 |
| Tax on a $50,000 401(k) withdrawal | $3,820 | $0 |
| Tax on a $100,000 401(k) withdrawal | $13,170 | $1,126 |
| Tax on a $200,000 401(k) withdrawal | $36,734 | $5,376 |
Social Security across all fifty states, including the eight that can tax it, is on which states tax Social Security. Required minimum distributions add to this income from 73: see the RMD on $1 million.
The retirement tax calculator, set to Michigan
Set to a married couple, both 67, with $42,000 of Social Security and $40,000 of IRA withdrawals. Change any input, including the state.
On $82,000 of income, the 2026 tax is about $1,295: $1,295 federal and $0 Michigan. $20,450 of your Social Security is taxable. The next $1,000 you withdraw from an IRA would cost $185 in tax.
This year’s income sets your Medicare premiums for 2028. See your IRMAA tier.
Figures checked on against Michigan ORS, Public Act 4 of 2023 FAQ, Michigan Treasury, 2026 withholding guide (Form 446) (PDF) and Michigan Treasury, retirement and pension benefits.