Retirement taxes by state
How Michigan taxes retirement income in 2026
Michigan has a flat 4.25% income tax. Here's how Michigan treats Social Security, retirement-account withdrawals, pensions and Roth conversions in 2026 — and what that means in dollars: a retired couple, both 67, with $98,000 of income pays nothing in Michigan income tax.
Updated October 2026 · 2026 tax year
Michigan at a glance
- Flat 4.25% income tax.
- Social Security isn't taxed.
- Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $67,610 ($135,220 joint) excluded from age 59½.
Michigan retirement tax questions
Does Michigan tax Social Security?
No. Social Security isn't taxed.
Does Michigan tax 401(k) and IRA withdrawals?
Partly. Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $67,610 ($135,220 joint) excluded from age 59½.
Does Michigan tax pensions?
Partly. Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $67,610 ($135,220 joint) excluded from age 59½.
Does Michigan tax Roth conversions?
Partly. Retirement income (pensions, 401(k)s, IRAs, Roth conversions): up to $67,610 ($135,220 joint) excluded from age 59½. Anything above that is taxed like other income.
What is Michigan's income tax rate in 2026?
Michigan has a flat 4.25% income tax.
What retirees actually pay in Michigan: three examples
Calculated with Retirology's tax engine under 2026 law, using each state's standard deduction, its retirement breaks and the 2026 federal rules for how much Social Security is taxable. That couple would owe nothing in Michigan — one of 24 states (counting DC) where they'd pay $0.
| Household | Total income | Michigan tax | Share |
|---|---|---|---|
| Retired couple, both 67 $48,000 of Social Security, $40,000 drawn from IRAs and 401(k)s, and $10,000 of qualified dividends | $98,000 | $0 | 0.0% |
| Single retiree, 70 $30,000 of Social Security, a $25,000 pension and $15,000 of IRA withdrawals | $70,000 | $0 | 0.0% |
| Early-retired couple, both 56, converting to Roth A $60,000 Roth conversion and $20,000 of long-term gains and qualified dividends, living on savings | $80,000 | $2,898 | 3.6% |
State income tax only — before local taxes, property tax relief and credits not listed above. Federal income tax is extra and the same in every state.
Details and limits
2026 completes the retirement-deduction phase-in: up to $67,610 ($135,220 joint) of pension, 401(k) and IRA income for everyone 59½+. Detroit's city tax is a locality.
Local income taxes
Some places in Michigan add a local income tax. Retirology models these when you pick your locality:
- Detroit (resident)
Sources
Rates and rules for the 2026 tax year, from Retirology's state tax data (reviewed October 2026):
This page explains state tax rules in general terms. It isn't tax advice — check your state's official instructions or a tax professional for your situation.