MICHIGAN RETIREMENT INCOME TAX · TAX YEAR 2026
Does Michigan tax Social Security and retirement income?
Michigan does not tax Social Security benefits. Michigan exempts public and private retirement income, including pensions and 401(k) and IRA withdrawals, up to $67,610 ($135,220 joint) in 2026 and taxes the rest. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays no Michigan income tax for 2026.
Your estimate
- Michigan income tax
- $0.00
- Federal income tax
- $1,810.00
- Total income tax
- $1,810.00
Subtracted from Michigan income
- Social Security
- $11,300.00
- Retirement and pension subtraction
- $30,000.00
The optional age-67 standard deduction ($20,000/$40,000) and older tier choices, and the full public safety pension deduction, are not modeled.
Michigan tax at different retirement incomes
Michigan income tax for 2026 on a single 67-year-old with $24,000 of Social Security, and on a married couple, both 67, with $20,000 each. Half the pension and IRA income is a private pension and half IRA withdrawals, all received by one spouse in the couple.
| Pension and IRA income | Single | Married |
|---|---|---|
| $20,000 | $0 | $0 |
| $40,000 | $0 | $0 |
| $60,000 | $0 | $0 |
| $100,000 | $1,126 | $0 |
| $150,000 | $3,251 | $127 |
Does Michigan tax Social Security?
No. Michigan lets you deduct Social Security benefits included in federal adjusted gross income. For 2026 through 2028, taxpayers born after 1952 and 67 or older can claim both the Michigan standard deduction for retirees and the Social Security deduction.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and Michigan taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and Michigan taxes none of it.
Does Michigan tax pensions?
Partly. For 2026, retirees of any birth year can subtract combined public and private pension, IRA and 401(k) income up to $67,610 for single filers or $135,220 on a joint return. Military retirement is subtracted in full but uses up part of that limit. Federal and Michigan government pensions of retirees born before 1946 are subtracted in full, as are pensions of retired Michigan police officers, firefighters, state troopers and county corrections officers.
State tax for a single 67-year-old with $24,000 of Social Security, a $20,000 pension of each type and $10,000 of IRA withdrawals. Excluded is the part of the pension Michigan exempts.
| Pension | Excluded | State tax |
|---|---|---|
| Private | $20,000 | $0 |
| Michigan government | $20,000 | $0 |
| Federal civil service | $20,000 | $0 |
| Military | $20,000 | $0 |
Does Michigan tax IRA and 401(k) withdrawals?
Partly. IRA distributions and most 401(k) payments count as retirement income under the same limit. Nonqualified deferred compensation generally does not.
With $24,000 of Social Security, $20,000 of IRA withdrawals and no other income, a single 67-year-old pays no Michigan income tax for 2026.
At what age do retirement tax breaks start in Michigan?
No age is needed in 2026: the retirement subtraction applies to every birth year. From 2026 through 2028, people 67 or older born after 1952 can instead take Michigan's retirement standard deduction along with the Social Security subtraction; the calculator does not model that choice.
What the calculator leaves out
The optional age-67 standard deduction ($20,000/$40,000) and older tier choices, and the full public safety pension deduction, are not modeled.
- On a joint return where one spouse was born before 1946, both spouses' public pensions are deducted in full.
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.