IRAs: Taxable at ordinary income tax rates unless a Michigan retirement plan*
401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
Private pensions: Taxable at ordinary income tax rates*
Public Pensions: Taxable at ordinary income tax rates*
Active Duty Pay: Exempt
Military Retirement Pay: Exempt
Military Disability Pay: Exempt
VA Disability Dependency & Indemnity Compensation Benefits: Exempt
SBP/SSBP/RCSBP/RSFPP: Michigan will not tax military survivor benefits that are exempt from federal income tax and are not included in federal adjusted gross income. Survivor benefits that are classified as military compensation or military retirement pay may be deducted to the extent they are included in federal adjusted gross income for the surviving spouse only. Military retirement benefits must be reported on the Schedule W even if no Michigan tax was withheld. (Source)
Income tax comments: *Retirement and survivor benefits are taxed differently depending on age. More favorable retirement income rules are in effect for some individuals born before 1952. Retirement income for individuals born after 1952 is usually fully taxable. (There is a narrow exception for individuals born between 1953 and 1955./State allows county- and city-level income tax.
Statewide property tax: $6 per $1,000 of assessed value
Local municipalities average 1.54% of the property's assessed value.
Calculation of assessed value: 100% of fair market value
Relief programs for:
Owner-occupied: Property tax credit of up to $1,500 if meet income and property value requirements. Cannot increase more than 5% or the Consumer Price Index per year, whichever is lower.
Disabled Veterans: 100% tax credit available if 100% service-connected disability
65 and over: Credit of up to $1,200 if income is less than $50,000.
Over 62 and Disabled/Blind: May defer taxes if income is less than $40,000.
Personal Property Tax: Yes. Rates and exemptions vary.