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State tax docs / States / Michigan

Michigan state income tax: engine rules, 2026

How the QuantCalc engine computes Michigan tax for tax year 2026, rule by rule, with the official source for each rule. Verification status: Worksheet-tested (what this means).

On this page: How the tax is computed · Rate schedule · Deductions, exemptions and credits · Age 65+ subtractions and credits · Social Security · IRA, 401(k) and private pensions · Public pensions · Military retirement pay · Roth conversions · Capital gains · Blindness and disability · Part-year and nonresident returns · Worked examples · After 2026 · Not calculated · Verification. Machine-readable: this state's entry in the engine config and the provenance file (key MI).

How the tax is computed

Every step the engine takes for Michigan, in the order it takes them. Steps marked with a filing status or household type apply only there. Each step links the section below that carries Michigan's figures and the official sources for it; the calculation order page describes every step for all jurisdictions.

What each filing status gets, read back from the engine for a household with $1 of income (so below every phase-out and income test):

SingleMarried filing jointlyMarried filing separatelyHead of household
Rate schedule usedsingle schedulejoint schedulejoint schedule, thresholds halvedsingle schedule
Top rate4.25% flat4.25% flat4.25% flat4.25% flat
Standard deduction, under 65$5,900$11,800$5,900$5,900
Standard deduction at 70 (joint: both 70)$5,900$11,800$5,900$5,900
Personal exemptionnonenonenonenone
Age subtractions at 70 (joint: both 70)$14,100$28,200$14,100$14,100
  1. Per-person mode joint returns with the spouse's age given On a joint return with the spouse's age given, every age test the state applies per taxpayer is evaluated for each spouse at their own age. Without it one household age applies to both.
    engine step (compute_state_tax_detail). Engine convention, no external source: The engine cannot know the second spouse's age unless told.
  2. Blindness and disability, per person only when the caller says a person is blind or disabled The filer is person one; the spouse counts only on a joint return and only when the caller says so (there is no household convention as for age). Where a state lets a disabled person (and, where it says so, a blind one, or one whose spouse is disabled) qualify for its general retirement exclusion before the age, that person is treated as having reached the age for that exclusion only. Of the 42 taxing jurisdictions, these have a blind amount: Arizona, Arkansas, California, Colorado, Delaware, the District of Columbia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Dakota, Oklahoma, Oregon, Utah, Vermont and Virginia; these have none: Alabama, Connecticut, Georgia, Louisiana, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, West Virginia and Wisconsin. A disability route is calculated in Arkansas, the District of Columbia, Georgia, Hawaii, Idaho, Iowa, Maryland, Michigan, New Jersey, Oregon and West Virginia.
    engine step (compute_state_tax_detail). Engine convention, no external source: Who is blind or disabled is the caller's statement; the engine has no household convention for it.
  3. Rate schedule and standard deduction by filing status Single uses the single schedule and deduction; married filing jointly the joint ones. Head of household and married filing separately follow the two steps below.
    Michigan's values · engine step (select_brackets). Sources (Rate schedule): 2026 Michigan Income Tax Withholding Guide (Form 446, Rev. 02-26) (checked 2026-10-12); 2025 MI-1040 Individual Income Tax Forms and Instructions (checked 2026-10-12); Revenue administrative bulletin 2026 1 (checked 2026-09-27)
  4. Married filing separately Where the state publishes its own separate schedule, that one (with half the joint deduction unless a separate deduction is set). Where one schedule applies to every status, that schedule unscaled with the single deduction. Otherwise the joint schedule with every threshold and the deduction halved (computed as the joint tax on twice the income, halved).
    Michigan's values · engine step (select_brackets). Sources (Rate schedule): 2026 Michigan Income Tax Withholding Guide (Form 446, Rev. 02-26) (checked 2026-10-12); 2025 MI-1040 Individual Income Tax Forms and Instructions (checked 2026-10-12); Revenue administrative bulletin 2026 1 (checked 2026-09-27)
  5. Head of household The state's head-of-household schedule where it has one, else the single schedule; the head-of-household deduction where set, else the single deduction.
    Michigan's values · engine step (select_brackets). Sources (Rate schedule): 2026 Michigan Income Tax Withholding Guide (Form 446, Rev. 02-26) (checked 2026-10-12); 2025 MI-1040 Individual Income Tax Forms and Instructions (checked 2026-10-12); Revenue administrative bulletin 2026 1 (checked 2026-09-27)
  6. The income total every income test uses Other ordinary income + retirement distributions (before any exclusion) + conversion + federally taxable Social Security + long-term gains + Railroad Retirement Tier 2. It stands in for federal adjusted gross income in every threshold, cliff and phase-out below; state subtractions do not reduce it.
    engine step (compute_state_tax_detail). Engine convention, no external source: The inputs are the federal AGI components, so their sum is federal AGI for these income types.
  7. Attributing income to each spouse joint returns with each spouse's own amounts given With a caller's split (the API's spouse object), each spouse's own distributions (employer-plan money included), pension, public pension, conversion, wages and military pay; spouse 2's shares are clamped into the household totals and spouse 1 gets the rest. Without a split, in per-person mode, every item is divided 50/50. Social Security is divided by each spouse's own gross benefits where the caller gives spouse.socialSecurityGross, else 50/50; other ordinary income and gains are always divided 50/50 where a rule needs a per-person amount. The split is used only where a state's rule is per taxpayer; household totals stay authoritative for the base and the income tests.
    engine step (compute_state_tax_detail). Engine convention, no external source: Equal attribution is the neutral split when the owner of a dollar is not known.
  8. Early IRA distributions The IRA and employer-plan dollars each person took before 59½: the amount the caller gave, else every such dollar of a person under 59 at the end of the year (none of an older person, or when the age is not given). Where the state keeps its retirement break only for some federal early-withdrawal exceptions, the other early dollars leave the retirement pool and are taxed as ordinary income; the exception is the caller's, else death for a survivor's benefits, disability for a disabled person, else none. Where the state taxes only the part over the IRA basis, the part within it is left out altogether. A kept exception passes the state's IRA age gate. The additional state tax on the early dollars with no exception is added before the credits, or after them where the state says so (next steps).
    Michigan's values · engine step (compute_state_tax_detail). Sources (IRA, 401(k) and private pensions): 2026 Michigan Income Tax Withholding Guide (Form 446, Rev. 02-26) (checked 2026-10-12); 2025 Michigan Pension Schedule (Form 4884) Instructions (checked 2026-10-12); Revenue administrative bulletin 2026 1 (checked 2026-09-27); Michigan Department of Treasury: MI-1040-Book.pdf (checked 2026-10-12); Michigan Legislature: MCL-206-30 (checked 2026-09-27)
  9. Keeping the per-spouse shares inside the household joint returns with each spouse's own amounts given After the public-pension and employer-pension carve-outs, if the two spouses' remaining shares add up to more than the household's exclusion-eligible distributions (an inconsistent split), spouse 1's share is reduced so they do not.
    engine step (compute_state_tax_detail). Engine convention, no external source: Input normalisation.
  10. Military retirement pay The state's military rule runs first, on military pay alone, per taxpayer: each spouse's own pay at their own age when attributed, otherwise half each at the household age on a joint return. Exempt dollars leave the base; the rest become pension dollars for the general retirement rules. Where the state lets a disabled retiree qualify at any age, a disabled person is treated as having reached the rule's age.
    Michigan's values · engine step (compute_state_tax_detail). Sources (Military retirement pay): Are military retirement benefits exempt from michigan individual income tax (checked 2026-09-27); Revenue administrative bulletin 2026 1 (checked 2026-09-27)
  11. One taxpayer's military exemption Exempt: all of it (below the age split, up to the younger cap). Capped: up to the cap for the age tier, plus the earned-income bonus below the age split when the taxpayer's own wages exceed the threshold, less the taxpayer's own Social Security where the rule says so. Percentage: the percentage (below the age split, up to the younger cap). Then the income limit: above it the exemption is lost, or phased out over the range where one is set.
    Michigan's values · engine step (military_exempt_one). Sources (Military retirement pay): Are military retirement benefits exempt from michigan individual income tax (checked 2026-09-27); Revenue administrative bulletin 2026 1 (checked 2026-09-27)
  12. Military exclusion reduces other caps Where the statute says so, the military amount a taxpayer excluded reduces that taxpayer's general retirement-exclusion cap, their age-65 subtraction, or both. A survivor's military pay (a surviving-spouse military deduction) reduces neither, where the state says so.
    Michigan's values · engine step (compute_state_tax_detail). Sources (Military retirement pay): Are military retirement benefits exempt from michigan individual income tax (checked 2026-09-27); Revenue administrative bulletin 2026 1 (checked 2026-09-27)
  13. Capital-loss deduction off the base The deduction comes off the other ordinary income (negative income, as Form 1040 line 7a is), so the base and every state-AGI figure summed from it carry it; WI no more than Wisconsin ordinary income (Schedule WD line 28(c)). States whose base is federal taxable income (with the caller's figure) already have it there and take it only once. Engine 1.13.1: the allowed rental loss comes off the same way, on its own line (rental_loss_deduction).
    Michigan's values · engine step (compute_state_tax_detail). Sources (Capital gains): 2025 MI-1040 Individual Income Tax Forms and Instructions (checked 2026-10-12); 2025 MI-1040 Book (checked 2026-10-12); 2025 Schedule D (Form 1040), Capital Gains and Losses (checked 2026-10-12)
  14. Social Security exempt None of the federally taxable benefit enters the base.
    Michigan's values · engine step (ss_amount_in_state_base). Sources (Social Security): 2025 Michigan Pension Schedule (Form 4884) Instructions (checked 2026-10-12)
  15. Does a conversion draw the retirement cap? Where the state lets a conversion draw the capped exclusion, and the filer is at or above the conversion age (the state's own pooling age where it has one; any age for a disabled person where the state says so), the conversion is pooled with distributions against the cap. A spouse who elects not to claim the exclusion draws none of it.
    Michigan's values · engine step (compute_state_tax_detail). Sources (Roth conversions): 2025 MI-1040 Individual Income Tax Forms and Instructions (checked 2026-10-12)
  16. Retirement exclusion per spouse (both ages known) joint returns with the spouse's age given Full-exclusion states exclude each qualifying spouse's own dollars. Capped states give each spouse the single cap for their own age against their own eligible dollars (pension dollars only where the exclusion is pension-only; employer dollars only below the IRA age), less their military exclusion and their own Social Security offset (by the spouse's stated gross benefits, else half). Per-return states (and the pooled-if-both-qualify rule when both qualify) apply the joint cap to the couple's pooled eligible dollars when either spouse qualifies. The income tests then apply once to the summed deduction.
    Michigan's values · engine step (compute_state_tax_detail). Sources (IRA, 401(k) and private pensions): 2026 Michigan Income Tax Withholding Guide (Form 446, Rev. 02-26) (checked 2026-10-12); 2025 Michigan Pension Schedule (Form 4884) Instructions (checked 2026-10-12); Revenue administrative bulletin 2026 1 (checked 2026-09-27); Michigan Department of Treasury: MI-1040-Book.pdf (checked 2026-10-12); Michigan Legislature: MCL-206-30 (checked 2026-09-27)
  17. Conversion pooled with distributions The conversion joins the distributions against the one cap (with a spouse split in a per-taxpayer state, each spouse's own distributions and conversion against that spouse's cap). Nothing of the conversion is added separately.
    Michigan's values · engine step (compute_state_tax_detail). Sources (Roth conversions): 2025 MI-1040 Individual Income Tax Forms and Instructions (checked 2026-10-12)
  18. Retirement exclusion (household) The distributions eligible for the exclusion go through the exclusion below. Taxable public-pension dollars left by a cap are not eligible; below the IRA age only employer-plan dollars are.
    Michigan's values · engine step (compute_state_tax_detail). Sources (IRA, 401(k) and private pensions): 2026 Michigan Income Tax Withholding Guide (Form 446, Rev. 02-26) (checked 2026-10-12); 2025 Michigan Pension Schedule (Form 4884) Instructions (checked 2026-10-12); Revenue administrative bulletin 2026 1 (checked 2026-09-27); Michigan Department of Treasury: MI-1040-Book.pdf (checked 2026-10-12); Michigan Legislature: MCL-206-30 (checked 2026-09-27)
  19. Conversion taxed or exempt In full-exclusion states a conversion is exempt at the qualifying age (at any age where the state says so). Elsewhere, unless pooled above, it is ordinary income taxed in full.
    Michigan's values · engine step (compute_state_tax_detail). Sources (Roth conversions): 2025 MI-1040 Individual Income Tax Forms and Instructions (checked 2026-10-12)
  20. Cap by age tier The full cap at or above the exclusion age, the lower cap at or above the partial age, otherwise none. Joint returns use the joint cap; every other status the single cap.
    Michigan's values · engine step (retirement_distributions_in_state_base). Sources (IRA, 401(k) and private pensions): 2026 Michigan Income Tax Withholding Guide (Form 446, Rev. 02-26) (checked 2026-10-12); 2025 Michigan Pension Schedule (Form 4884) Instructions (checked 2026-10-12); Revenue administrative bulletin 2026 1 (checked 2026-09-27); Michigan Department of Treasury: MI-1040-Book.pdf (checked 2026-10-12); Michigan Legislature: MCL-206-30 (checked 2026-09-27)
  21. The capped deduction Deduction = the smaller of the eligible distributions and the cap, then reduced by the income limit above; the rest of the distributions stays in the base.
    Michigan's values · engine step (retirement_distributions_in_state_base). Sources (IRA, 401(k) and private pensions): 2026 Michigan Income Tax Withholding Guide (Form 446, Rev. 02-26) (checked 2026-10-12); 2025 Michigan Pension Schedule (Form 4884) Instructions (checked 2026-10-12); Revenue administrative bulletin 2026 1 (checked 2026-09-27); Michigan Department of Treasury: MI-1040-Book.pdf (checked 2026-10-12); Michigan Legislature: MCL-206-30 (checked 2026-09-27)
  22. One taxpayer's cap joint returns with the spouse's age given For per-spouse calculations, each spouse's cap is the single-column cap for their age tier.
    Michigan's values · engine step (per_taxpayer_cap_single). Sources (IRA, 401(k) and private pensions): 2026 Michigan Income Tax Withholding Guide (Form 446, Rev. 02-26) (checked 2026-10-12); 2025 Michigan Pension Schedule (Form 4884) Instructions (checked 2026-10-12); Revenue administrative bulletin 2026 1 (checked 2026-09-27); Michigan Department of Treasury: MI-1040-Book.pdf (checked 2026-10-12); Michigan Legislature: MCL-206-30 (checked 2026-09-27)
  23. Long-term gains in the base Where gains are taxed as ordinary income: net long-term gain less the flat exclusion (never below zero), times the inclusion share. Elsewhere none enters.
    Michigan's values · engine step (compute_state_tax_detail). Sources (Capital gains): 2025 MI-1040 Individual Income Tax Forms and Instructions (checked 2026-10-12); 2025 MI-1040 Book (checked 2026-10-12); 2025 Schedule D (Form 1040), Capital Gains and Losses (checked 2026-10-12)
  24. Exemption for blindness only when the caller says a person is blind or disabled An extra exemption for each blind person (the filer, and the spouse on a joint return). Where the state's exemption is for a person who is blind or disabled, a disabled person below the state's age limit (if any) qualifies too, one exemption per person either way.
    Michigan's values · engine step (compute_state_tax_detail). Sources (Blindness and disability): 2025 MI-1040 booklet (checked 2026-10-12)
  25. Dependent exemptions and deductions only when the caller lists dependents An amount per dependent subtracted like the personal exemption: the state's flat amount, or the stepped per-exemption amount the filer gets, or the state's own income steps; nothing above an income limit where there is one; a percentage phase-out per income step where there is one; one more for a dependent in an age band or a student up to an age, for a dependent born in the year, and for a disabled dependent; a deduction per dependent beyond the first on joint and head-of-household returns; and a child deduction by an income table for dependents under an age. A head of household's status exemption that already holds one dependent's amount counts one fewer. Where the state says so, the phase-out is measured on the state AGI (the base before deductions).
    Michigan's values · engine step (compute_state_tax_detail). Sources (Deductions, exemptions and credits): 2026 Michigan Income Tax Withholding Guide (Form 446, Rev. 02-26) (checked 2026-10-12); Michigan Department of Treasury: MI-1040-Book.pdf (checked 2026-10-12); Michigan Department of Treasury: revenue-administrative-bulletin-2026-1 (checked 2026-09-27); Michigan Legislature: MCL-206-30 (checked 2026-09-27); 2025 Michigan Individual Income Tax Return MI-1040 Instruction Book (checked 2026-10-01); 2025 MI-1040CR Homestead Property Tax Credit Claim (Wayback copy) (checked 2026-10-12)
  26. Born before 1946 A filer (on a joint return the older spouse) at or above the age: public pensions are subtracted without limit (the private cap is the cap less the public amount, so the public amount over the exclusion taken is added), and the interest, dividend and gain deduction takes the cap less the retirement, military and taxable railroad subtractions (non-wage ordinary income and gains are read as interest, dividends and gains).
    Michigan's values · engine step (compute_state_tax_detail). Sources (Public pensions): 2026 Michigan Income Tax Withholding Guide (Form 446, Rev. 02-26) (checked 2026-10-12); Michigan Department of Treasury: MI-1040-Book.pdf (checked 2026-10-12); Michigan Department of Treasury: revenue-administrative-bulletin-2026-1 (checked 2026-09-27); Michigan Legislature: MCL-206-30 (checked 2026-09-27)
  27. Age standard deduction instead of the retirement subtraction When the older spouse is between the two ages, a deduction per return against all income: the filing status's amount less the military pay the state excluded and, at or below the lower tier's age, less the personal exemptions. It replaces the retirement subtraction: when it is larger, the retirement income that subtraction removed returns to the base and this deduction is taken instead.
    Michigan's values · engine step (compute_state_tax_detail). Sources (Age 65+ subtractions and credits): 2025 Michigan Individual Income Tax Return MI-1040 Instruction Book (checked 2026-10-12); Revenue Administrative Bulletin 2026-1 (Michigan Treasury; Wayback copy) (checked 2026-09-27); MCL 206.30 (Michigan taxable income) (checked 2026-09-27); 2025 MI-1040 Individual Income Tax Instruction Book (Schedule 1 line 25) (checked 2026-10-12)
  28. Age standard deduction: the non-covered pension add-on only when the caller says the pension was not covered by Social Security Above the Tier 3 ages, a household with a public pension from employment not covered by Social Security (pensionPublicSsCovered: false) adds the add-on to the age standard deduction before the military pay comes off.
    Michigan's values · engine step (compute_state_tax_detail). Sources (Age 65+ subtractions and credits): 2025 Michigan Individual Income Tax Return MI-1040 Instruction Book (checked 2026-10-12); Revenue Administrative Bulletin 2026-1 (Michigan Treasury; Wayback copy) (checked 2026-09-27); MCL 206.30 (Michigan taxable income) (checked 2026-09-27); 2025 MI-1040 Individual Income Tax Instruction Book (Schedule 1 line 25) (checked 2026-10-12)
  29. State taxable income Other ordinary income + Social Security, retirement income, conversion and gains left in the base − standard deduction − personal exemption − age subtractions.
    engine step (compute_state_tax_detail). Engine convention, no external source: The order of subtraction follows the state forms; each amount is sourced at its own step.
  30. No tax at or below zero State taxable income at or below zero returns a tax of 0 (credits are not refundable), unless the state has a tax computed apart from taxable income that still applies (next step).
    engine step (compute_state_tax_detail). Engine convention, no external source: Every credit the engine carries is nonrefundable, so nothing below can make a zero tax negative; each credit is sourced at its own step.
  31. Separate-return scaling married filing separately For the halved-joint rule, taxable income is doubled before the schedule and the result halved.
    Michigan's values · engine step (compute_state_tax_detail). Sources (Rate schedule): 2026 Michigan Income Tax Withholding Guide (Form 446, Rev. 02-26) (checked 2026-10-12); 2025 MI-1040 Individual Income Tax Forms and Instructions (checked 2026-10-12); Revenue administrative bulletin 2026 1 (checked 2026-09-27)
  32. The rate schedule Each bracket's rate on the part of taxable income inside it, summed. No rounding: the result is carried in full precision.
    Michigan's values · engine step (apply_state_brackets). Sources (Rate schedule): 2026 Michigan Income Tax Withholding Guide (Form 446, Rev. 02-26) (checked 2026-10-12); 2025 MI-1040 Individual Income Tax Forms and Instructions (checked 2026-10-12); Revenue administrative bulletin 2026 1 (checked 2026-09-27)
  33. Credits cannot make the tax negative The credits are subtracted and the result floored at zero.
    engine step (compute_state_tax_detail). Engine convention, no external source: Every credit the engine carries is nonrefundable; each credit is sourced at its own step.
  34. Qualifying surviving spouse qualifying surviving spouse returns A qualifying surviving spouse (filingStatus qss) is one person on the return, taxed from the single figures with the state's own treatment of the status laid over them: where the state says so, the joint rate schedule, the joint standard deduction, the joint personal exemption, the joint income limits and phase-outs (only those the state sets for joint returns), the married 65+ and blindness amounts, or the head-of-household return; where the state gives the status nothing of its own, the single return. The federal figures the engine derives for the status are the federal qualifying-surviving-spouse ones (the joint standard deduction, the married 65+ amount).
    Michigan's values · engine step (state_tax_effective_config). Sources (Rate schedule): 2026 Michigan Income Tax Withholding Guide (Form 446, Rev. 02-26) (checked 2026-10-12); 2025 MI-1040 Individual Income Tax Forms and Instructions (checked 2026-10-12); Revenue administrative bulletin 2026 1 (checked 2026-09-27)
  35. Railroad Retirement benefits only when the caller gives Railroad Retirement benefits Railroad Retirement benefits are never taxed by a state (45 U.S.C. §231m). Tier 2 (railroadRetirementTier2) is in the income total the tests use but never in the base. Tier 1 (railroadRetirementTier1) is a part of the gross benefits (socialSecurityGross); its share of the taxable benefits is taken out of the Social Security every state rule sees, so a state that taxes Social Security never reaches it. Where a state's worksheet says so, the benefits reduce a retirement cap or subtraction (ID, IN, MD, ME, MN: both tiers; MI: the taxable railroad benefits); Minnesota's and Utah's Social Security rules test an income without them, Minnesota's, New Jersey's and California's retirement income tests an income without Tier 2; Ohio and Delaware test their own AGI everywhere, which never holds the benefits.
    Michigan's values · engine step (compute_state_tax_detail). Sources (Social Security): 2025 Michigan Pension Schedule (Form 4884) Instructions (checked 2026-10-12)
  36. The capital-loss deduction the state allows With a net capital loss (capitalLoss): the smaller of the loss and the state's limit (the federal $3,000 / $1,500 where the state follows the federal return; MA $2,000, and no more than the interest and dividends); AL the loss less the part carried in, unlimited; PA and NJ none. It comes off the income total the income tests use (and the Social Security worksheets' income); the gross-income filing test (LA) reads the total before it. Engine 1.13.1: with a rental loss (rentalNetIncome below 0, the federal Schedule E line 26 amount) the state allows, the whole loss where the state starts from federal AGI or follows the federal schedule, none in PA and NJ (rental_loss_no_offset): it comes off the same income the same way; a rental profit is other ordinary income.
    Michigan's values · engine step (compute_state_tax_detail). Sources (Capital gains): 2025 MI-1040 Individual Income Tax Forms and Instructions (checked 2026-10-12); 2025 MI-1040 Book (checked 2026-10-12); 2025 Schedule D (Form 1040), Capital Gains and Losses (checked 2026-10-12)
  37. Each spouse's own Social Security joint returns On a joint return, each spouse's own Social Security is the spouse's share of the benefits by spouse.socialSecurityGross when the caller gives it (Tier 1 railroad benefits left out), else half each. It is what the per-spouse rules read: Colorado's per-spouse subtraction, Rhode Island's per-spouse modification, and the Maine, Maryland and other retirement caps reduced by the benefits each spouse received (with each spouse's own railroad benefits where the state counts them).
    Michigan's values · engine step (compute_state_tax_detail). Sources (Social Security): 2025 Michigan Pension Schedule (Form 4884) Instructions (checked 2026-10-12)
  38. Refundable state credits The credits paid beyond the tax (reported in refundableCredits; netTax = totalTax less them): earned income credits as a share of the federal EIC with each state's own age band (OK on the 2020 federal credit, DC's own childless schedule, the CalEITC table, MN's Working Family Credit), the NYC EIC and school tax credits, and the property-tax, renter, grocery and senior credits of MA, MI, NJ, ID, HI, NM, OK, AZ, NY, RI, WV, ME, DC, MN, MO, WI, IN and MT, each on its own income measure. Engine 1.13.1: a part-year NYC resident's school tax credits (the Table 2 proration chart and the rate-reduction amount on IT-360.1 line 47; IT-203 lines 60 / 60a for a part-year state resident).
    Michigan's values · engine step (state_tax_refundable_credits). Sources (Deductions, exemptions and credits): 2026 Michigan Income Tax Withholding Guide (Form 446, Rev. 02-26) (checked 2026-10-12); Michigan Department of Treasury: MI-1040-Book.pdf (checked 2026-10-12); Michigan Department of Treasury: revenue-administrative-bulletin-2026-1 (checked 2026-09-27); Michigan Legislature: MCL-206-30 (checked 2026-09-27); 2025 Michigan Individual Income Tax Return MI-1040 Instruction Book (checked 2026-10-01); 2025 MI-1040CR Homestead Property Tax Credit Claim (Wayback copy) (checked 2026-10-12)

Rate schedule

A flat 4.25% on state taxable income.

Deductions, exemptions and credits

  • Standard deduction (or the exemption the engine carries in its place): $5,900 single, $11,800 married filing jointly, and the single amount for head of household.

Source review notes (what the sources do not state outright, or what the engine does not carry):

Age 65+ subtractions and credits

    Source review notes (what the sources do not state outright, or what the engine does not carry):

    Social Security

    Social Security benefits are fully exempt: none of the federally taxable amount enters the state base.

    API value: socialSecurityRule: "exempt". The engine's input is the federally taxable amount; income tests use the sum of the income components as the adjusted-gross-income proxy.

    IRA, 401(k) and private pensions

    • Pension, annuity and IRA/401(k) distributions: up to $67,610 excluded per taxpayer ($135,220 on a joint return) at any age.
    • Joint returns: the cap is per return. With both ages given, the age test is met when either spouse qualifies and the $135,220 joint cap covers the couple's pooled income.

    Source review notes (what the sources do not state outright, or what the engine does not carry):

    Public pensions

    For a filer (on a joint return, the older spouse) 81 or older — born before 1946 — public pensions are subtracted without limit (see the age rules). Otherwise public pensions follow the rules for other retirement income above.

    Source review notes (what the sources do not state outright, or what the engine does not carry):

    Military retirement pay

    • Military retirement pay is fully exempt, at any age.
    • The military amount excluded reduces that taxpayer's general retirement-income exclusion.
    • Rules are applied per taxpayer at that person's own age when the spouse's age is given. API value: rules.militaryRetirement.treatment: "exempt".

    Roth conversions

    A conversion draws the retirement-income exclusion together with distributions from age 60 (on a joint return, by the converting person's own age); a disabled person's conversion qualifies at any age; the part above the cap is taxed as ordinary income.

    Capital gains

    • Net long-term gain is taxed as ordinary income.
    • Short-term gains are ordinary income.

    Blindness and disability

    • An extra exemption of $3,400 for each person who is blind, or who is disabled and under 66 (the filer, and the spouse on a joint return), one per person.
    • The API applies these through its blind, disabled, spouse.blind and spouse.disabled fields; absent means false.

    Part-year and nonresident returns

    • Part-year resident (Schedule NR): the tax on the state's own income (what was received while a resident, plus the state-source income while a nonresident), with the deductions and exemptions the form prorates scaled by its ratio.
    • Nonresident (Schedule NR): the tax on the state's own income (what was received while a resident, plus the state-source income while a nonresident), with the deductions and exemptions the form prorates scaled by its ratio.
    • The ratio: the federal AGI of the state's income over the federal AGI of the whole year, not rounded (the form states no rounding), at most 1.
    • Prorated on a part-year return: the standard deduction, the personal exemptions, dependent exemptions.
    • Prorated on a nonresident return: the standard deduction, the personal exemptions, dependent exemptions.
    • A nonresident's retirement income is not taxable by the state (4 U.S.C. §114); the API refuses it in residency.stateIncome. The credit for tax paid to another state and the earned income credits on these returns are not computed.

    Married couples whose residency differs (engine 1.13.0)

    With residency.spouse on a joint request, each allowed treatment is calculated and reported in residency.couple; tax is the required one, else the state's default, else the couple's residency.election, else the joint return the request's mfj names. Each rule is quoted from the state's instructions (engine 1.14.0: and its statutes, regulations, bulletins and other official guidance) in the sources below.

    SpousesMichigan's rule
    One spouse a full-year resident, the other a part-year residenta joint part-year / nonresident return is required; the full-year resident's exemption in full, the other spouse's by their own income ratio.
    One spouse a full-year resident, the other a nonresidenta joint part-year / nonresident return is required; the full-year resident's exemption in full, the other spouse's by their own income ratio.
    One spouse a part-year resident, the other a nonresidenta joint part-year / nonresident return is required.
    Both part-year residents, different resident periodsa joint part-year / nonresident return is required.
    Both nonresidents, only one with income from the statea joint part-year / nonresident return is required.

    Worked examples

    Computed by the engine for the fixed households below (the same ones for every state, so states compare directly). Federal tax is not supplied, so a federal-tax deduction is not taken; the income tests use the sum of the components as income.

    Household (engine inputs)State tax
    Single, 67: $30,000 private pension, $20,000 IRA, $10,000 interest, $24,000 Social Security ($17,000 federally taxable), $5,000 long-term gain$386.75
    Married filing jointly, 70: $40,000 public pension, $40,000 IRA, $20,000 interest, $40,000 Social Security ($34,000 federally taxable), $10,000 long-term gain$773.50
    Single, 60: $60,000 other ordinary income and a $50,000 Roth conversion$2,299.25
    Married filing jointly, 66: $30,000 IRA, a $40,000 Roth conversion, $30,000 Social Security ($25,500 federally taxable)$0
    Single, 58: $36,000 military retirement pay and $30,000 wages$1,024.25
    Married filing jointly, ages 67 and 61: $50,000 IRA, $10,000 interest, $30,000 Social Security ($25,500 federally taxable), each spouse's age given$0

    Line by line

    The intermediate lines the engine records while it computes each example (its detail record, printed as it comes out; lines that are zero are left out). The engine's documentation build checks that the lines add up to the taxable income and the tax, for every state, filing status and a grid of households. Each line links the engine step that produces it.

    Single, 67: $30,000 private pension, $20,000 IRA, $10,000 interest, $24,000 Social Security ($17,000 federally taxable), $5,000 long-term gain: $386.75
    LineAmount
    Income total used by the income tests$82,000
    Retirement income and conversions excluded (not in the base)$50,000
    + Other ordinary income in the base$10,000
    + Long-term gain in the base$5,000
    − Standard deduction$5,900
    = State taxable income$9,100
    Tax from the rate schedule$386.75
    = Tax before credits$386.75
    = Tax$386.75
    Married filing jointly, 70: $40,000 public pension, $40,000 IRA, $20,000 interest, $40,000 Social Security ($34,000 federally taxable), $10,000 long-term gain: $773.50
    LineAmount
    Income total used by the income tests$144,000
    Retirement income and conversions excluded (not in the base)$80,000
    + Other ordinary income in the base$20,000
    + Long-term gain in the base$10,000
    − Standard deduction$11,800
    = State taxable income$18,200
    Tax from the rate schedule$773.50
    = Tax before credits$773.50
    = Tax$773.50
    Single, 60: $60,000 other ordinary income and a $50,000 Roth conversion: $2,299.25
    LineAmount
    Income total used by the income tests$110,000
    Retirement income and conversions excluded (not in the base)$50,000
    + Other ordinary income in the base$60,000
    − Standard deduction$5,900
    = State taxable income$54,100
    Tax from the rate schedule$2,299.25
    = Tax before credits$2,299.25
    = Tax$2,299.25
    Married filing jointly, 66: $30,000 IRA, a $40,000 Roth conversion, $30,000 Social Security ($25,500 federally taxable): $0
    LineAmount
    Income total used by the income tests$95,500
    Retirement income and conversions excluded (not in the base)$70,000
    − Standard deduction$11,800
    = State taxable income$0
    Tax from the rate schedule$0
    = Tax$0
    Single, 58: $36,000 military retirement pay and $30,000 wages: $1,024.25
    LineAmount
    Income total used by the income tests$66,000
    Military pay excluded (not in the base)$36,000
    + Other ordinary income in the base$30,000
    − Standard deduction$5,900
    = State taxable income$24,100
    Tax from the rate schedule$1,024.25
    = Tax before credits$1,024.25
    = Tax$1,024.25
    Married filing jointly, ages 67 and 61: $50,000 IRA, $10,000 interest, $30,000 Social Security ($25,500 federally taxable), each spouse's age given: $0
    LineAmount
    Income total used by the income tests$85,500
    Retirement income and conversions excluded (not in the base)$50,000
    + Other ordinary income in the base$10,000
    − Standard deduction$11,800
    = State taxable income$0
    Tax from the rate schedule$0
    = Tax$0

    After 2026: how the amounts move

    A request with projection (API) estimates a later tax year from these rules: every dollar amount and age test below moves the way Michigan's law moves it. Rates and the rules themselves stay the 2026 ones (how projection works).

    Amounts (engine fields)After 2026What the law says, and the source
    std_deduction_single, std_deduction_mfj, dep_exemptionIndexed: U.S. CPI for the state fiscal year (Oct-Sep) ending in the prior tax year, relative to a base fiscal year (MCL 206.30(7)), base FY2010-11, plus a fixed $600; the increase rounded to the nearest $100.The personal/dependency exemption (the engine's 'standard deduction' is the folded exemption) is the 2012 amount times the ratio of U.S. CPI for the state fiscal year ending in the prior tax year to the 2010-11 fiscal-year CPI, plus $600 (from 2022), rounded to the nearest $100. $5,900 for 2026.
    • MCL 206.30 (Income Tax Act of 1967; Internet Archive capture 2026-07-17) (Michigan Legislature, statute): Subsection (7). Quoted: "the personal exemption allowed under subsection (2) shall be adjusted by multiplying the exemption for the tax year beginning in 2012 by a fraction"; "the adjusted amount determined under this subsection shall be increased by an additional $600.00. the resultant product shall be rounded to the nearest $100.00 increment". Checked 2026-09-30.
    • 2026 Michigan Income Tax Withholding Guide (Form 446) (Michigan Department of Treasury, instructions): 2026 amount. Quoted: "personal exemption amount: $5,900". Checked 2026-10-12.
    blind_exemption, dep_disabled_exemptionIndexed: U.S. CPI for the state fiscal year (Oct-Sep) ending in the prior tax year, relative to a base fiscal year (MCL 206.30(7)), base FY1998-99; the increase rounded to the nearest $100. The engine carries the 2025 figure (the latest published) for 2026, so a projection adds 1 year of indexing at the factor's average annual rate.The additional exemption for deaf, blind, paraplegic/hemiplegic/quadriplegic or totally and permanently disabled persons ($1,800 base) is adjusted each year by the fiscal-year CPI ratio to 1998-99, rounded to the nearest $100. The engine carries the 2025 amount ($3,400).
    • MCL 206.30 (Income Tax Act of 1967; Internet Archive capture 2026-07-17) (Michigan Legislature, statute): Subsections (3)(a) and (7). Quoted: "$1,800.00 for each taxpayer and every dependent of the taxpayer who is a deaf person"; "the denominator of which is the united states consumer price index for the 1998-1999 state fiscal year. the resultant product shall be rounded to the nearest $100.00 increment". Checked 2026-09-30.
    • 2025 MI-1040 Individual Income Tax Forms and Instructions (Michigan Department of Treasury, instructions): 2025 amount. Quoted: "the special exemption allowance for deaf, blind, hemiplegic, paraplegic, quadriplegic, or totally and permanently disabled is $3,400". Checked 2026-10-12.
    blind_exemption_disabled_max_age, dep_disabled_exemption_max_ageNot established from an official source: held, and a projected API result that depends on it is refused (400).The statute defines 'totally and permanently disabled' by Social Security Act disability (42 USC 416, MCL 206.522), which ends at full retirement age; Treasury's 2025 instructions bar the disabled exemption for those who reached 66 by February 28, 2025. Full retirement age rises to 67 for people born in 1960 or later, and no Treasury rule for later years was found, so the future cutoff (66 vs 67, and its date convention) is not established. Engine 1.12.0 re-check: MCL 206.30(3)(a) and 206.522 set no age (disability as defined in 42 USC 416); the 66 is Treasury's TY2025 date test, and no TY2026 rule is published, so the future cutoff stays unknown.
    retirement_income_exclusion_single, retirement_income_exclusion_mfjIndexed: percentage increase in the U.S. CPI for the immediately preceding calendar year (MCL 206.30(1)(f)(iv), (1)(p)); not rounded (the statute states no rounding).From 2026 every taxpayer may deduct retirement/pension benefits up to the (1)(f)(iv) maximum ($42,240 / $84,480 in 2007), adjusted each year by the percentage increase in the U.S. CPI for the preceding calendar year; no rounding stated (Treasury 'annualizes'). $67,610 / $135,220 for 2026.
    • MCL 206.30 (Income Tax Act of 1967; Internet Archive capture 2026-07-17) (Michigan Legislature, statute): (1)(f)(iv) indexing and (10)(d) full phase-in. Quoted: "for the 2008 tax year and each tax year after 2008, the maximum amounts allowed under this subparagraph shall be adjusted by the percentage increase in the united states consumer price index for the immediately preceding calendar year"; "for the 2026 tax year and each tax year after 2026, a taxpayer may deduct retirement or pension benefits as provided under subsection (1)(f)". Checked 2026-09-30.
    • 2026 Michigan Income Tax Withholding Guide (Form 446) (Michigan Department of Treasury, instructions): 2026 amounts. Quoted: "up to the remaining balance of $67,610 if single or married filing separately, or $135,220 if married and filing a joint return". Checked 2026-10-12.
    conversion_exclusion_min_ageAttained age: the same age in every year.IRA distributions count as retirement benefits only if made after the participant reaches 59 1/2 (engine: 60); fixed age.
    tier1_min_ageBirth-year cutoff (born in 1945 or earlier): age 81 in 2026, one year older each later year.The born-before-1946 rules (unlimited public pension, interest/dividend/gain deduction) are a birth-date cohort: the youngest member is Y-1945 in tax year Y (81 in 2026).
    tier1_invest_cap_single, tier1_invest_cap_mfjIndexed: percentage increase in the U.S. CPI for the immediately preceding calendar year (MCL 206.30(1)(f)(iv), (1)(p)); not rounded (the statute states no rounding). The engine carries the 2025 figure (the latest published) for 2026, so a projection adds 1 year of indexing at the factor's average annual rate.Interest, dividends and capital gains deduction for seniors born before 1946: $9,420 / $18,840 (2007) adjusted by the percentage increase in the U.S. CPI for the preceding calendar year. The engine carries the 2025 figure ($14,688 / $29,376).
    • MCL 206.30 (Income Tax Act of 1967; Internet Archive capture 2026-07-17) (Michigan Legislature, statute): Subsection (1)(p). Quoted: "not to exceed $9,420.00 for a single return and $18,840.00 for a joint return"; "the maximum amounts allowed under this subdivision shall be adjusted by the percentage increase in the united states consumer price index for the immediately preceding calendar year". Checked 2026-09-30.
    • 2025 MI-1040 Individual Income Tax Forms and Instructions (Michigan Department of Treasury, instructions): 2025 amount. Quoted: "for 2025, the deduction is limited to a maximum of $14,688 for single filers and $29,376 for joint filers". Checked 2026-10-12.
    age_std_deduction_single, age_std_deduction_mfj, age_std_noncov_addonFixed in law: held at the rules-year amount in every later year.The deduction against all income for a person 67+ born after 1945 is $20,000 single / $40,000 joint, and the non-Social-Security-covered public pension amount is $15,000 ($30,000 when both spouses); nominal in MCL 206.30(9), no indexing.
    age_std_deduction_min_ageAttained age: the same age in every year.Available once the person (older spouse on a joint return) reaches 67; fixed age.
    age_std_deduction_max_ageBirth-year cutoff (born in 1946 or earlier): age 80 in 2026, one year older each later year.The tier-2 rules apply to persons born 1946 through 1952, so the oldest member of that cohort is Y-1946 in tax year Y (80 in 2026).
    age_std_deduction_tier3_max_ageBirth-year cutoff (born in 1953 or earlier): age 73 in 2026, one year older each later year.The tier-3 rules apply to persons born after 1952, so the oldest member is Y-1953 in tax year Y (73 in 2026).
    cap_loss_limit, cap_loss_limit_mfsFixed in law: held at the rules-year amount in every later year.Michigan starts from federal AGI, so the fixed IRC 1211(b) limit applies.
    • 26 U.S.C. 1211 (Limitation on capital losses) (Legal Information Institute (Cornell) - U.S. Code, federal): IRC 1211(b) limits a non-corporate capital loss against other income to $3,000 ($1,500 MFS), with no inflation adjustment. Quoted: "(1) $3,000 ($1,500 in the case of a married individual filing a separate return), or". Checked 2026-10-12.
    mi-homestead-property-tax-credit (a table held in code)Indexed: Michigan annual adjustment of the homestead credit amounts; the increase rounded to the nearest $1. The engine carries the 2025 figure (the latest published) for 2026, so a projection adds 1 year of indexing at the factor's average annual rate.The THR limit, taxable-value limit, phase-out start and maximum credit increase each year (MCL 206.520); the engine carries the 2025 amounts.

    Enacted for later years, not applied by the projection

    What the engine does not calculate, and known approximations

    What the engine does not calculate for any state (itemized deductions, credits beyond those listed, part-year residents, and more) is listed on the calculation order page.

    Verification

    Worksheet-tested 16 JSON-API scenarios replay the 2025 MI-1040, Schedule 1 and Form 4884 (Worksheet 3.3, Section A) with the official 2026 figures ($5,900 exemption, $67,610 / $135,220 limit, 100% phase-in); the 6 further differences the worksheet pass found are resolved and asserted (engine 1.6.0 and 1.7.0). The form-line map (research/data/state-tax-form-map/MI.json) adds 11 asserted cases and the Tier 2 add-on of Worksheet 2 line 2a (fm3-MI-01, engine 1.8.0); no difference is pending.