Gasoline Tax: 66.40 cents/gallon (Includes all state, local, and federal taxes)
Diesel Fuel Tax: 77.90 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Personal Income Tax Rate Range: 4.25%.
Standard deduction: None
Personal Exemption Allowance: $5,600. Dependent Exemption: $5,600. Disabled: $2,900, plus additional $400 if a veteran.
Itemized Deductions Allowed? No
Retirement Income
Social Security: Exempt
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*
Military Pay
Active Duty Pay: Exempt
Military Retirement Pay: Michigan exempts military retirement pay, but the pay still may factor into tax calculations. The state uses a three-tier system based on age and the amount of pension received. Consult a tax professional to determine its impact on you.
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 1946. Retirement income for individuals born after 1952 is usually fully taxable. (There is a narrow exception for individuals born between 1946 and 1952. State allows county- and city-level income tax.
Property Tax
Statewide property tax: $6 per $1,000 of assessed value
Local municipalities average 1.35% 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 $1,700 if meet income and property value requirements. Cannot increase more than 5% or the Consumer Price Index per year, whichever is lower.
Disabled Veterans/Surviving Spouses: 100% tax credit available if 100% service-connected disability.
65 and Over: Credit of up to $1,700 if meet certain requirements.
62 or Older and Disabled/Blind: May defer summer taxes if income is less than $40,000. Winter tax deferral available if 65 or older.
Personal Property Tax: Yes. Rates and exemptions vary.
Premium and Life members can consult our financial staff for education and consumer advice.
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