Retirement Tax Breakdown for Michigan Residents

Complete Michigan retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #35 of 51.

State Income Tax
4.25% top rate

1 bracket(s)

Capital Gains Rate
4.25%

Treated as ordinary income

Property Tax Rate
1.31%

#13 (Low)

Sales Tax Rate
6%

State 6% + local avg 6%

Less Tax-Friendly State

Michigan exempts Social Security but taxes most pensions and retirement distributions. The flat 4.25% rate is moderate. Property taxes are above average.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Taxable

Retirement Exemption

None

Tax Comparison Summary

State income tax4.25% top
Capital gains4.25%
Property tax1.31% effective
Sales tax6% combined
Overall retiree rank#35 of 51

Michigan Income Tax Brackets

State Tax Bracket Schedule

RateFromTo
4.25%$0No limit

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