MICHIGAN 529 PLAN · TAX YEAR 2026
Michigan 529 tax deduction calculator
Michigan lets you deduct up to $5,000 of contributions to Michigan's 529 plan, or $10,000 on a joint return. A single filer with $75,000 of wages who contributes $5,000 saves $213 of Michigan tax.
State tax saved
- Michigan tax saved
- $212.50
- Deduction
- $5,000.00
- Deduction limit
- $5,000.00
- Michigan tax before
- $2,936.75
- Michigan tax after
- $2,724.25
Michigan tax saved by contribution
With $75,000 of wages and one beneficiary.
| Contribution | Single | Married filing jointly |
|---|---|---|
| $1,000 | $43 | $43 |
| $5,000 | $213 | $213 |
| $10,000 | $213 | $425 |
| $20,000 | $213 | $425 |
Michigan 529 tax questions
Does Michigan have a 529 tax deduction?
Yes. Michigan lets you deduct up to $5,000 of contributions to Michigan's 529 plan, or $10,000 on a joint return.
How much does a $5,000 529 contribution save in Michigan?
$213 of Michigan tax for a single filer with $75,000 of wages, and $213 for a married couple filing jointly with the same income.
Which 529 plans qualify for Michigan's deduction?
Only the Michigan Education Savings Program. Amounts moved from another 529 plan are not eligible.
Is a Michigan 529 withdrawal for K-12 tuition taxed?
Yes. Michigan recaptures the deduction on withdrawals for K-12 tuition, and adds back nonqualified withdrawals up to the amount deducted.
What the calculator leaves out
- Michigan reduces the deduction by qualified withdrawals made in the same year; the calculator assumes none.
The calculator assumes the contribution goes to a plan that qualifies for the state's benefit: the state's own plan unless the state accepts any 529 plan. Wages are the only income, and they stand in for the income a state tests against its limits. Per-beneficiary limits assume the contribution is split evenly. Federal tax does not change, because 529 contributions aren't federally deductible. Carryforwards of earlier contributions, recapture on nonqualified withdrawals and city or school district taxes are left out.