Military retirement pay in Michigan
Varies
Does Michigan Tax Military Retirement Pay?
Short answer: No. Michigan fully exempts military retired pay from state income tax. Other retirement income: For 2026, with the phase-in complete, all taxpayers may subtract public and private retirement benefits (pensions, 401(k), IRA) up to $67,610 single / $135,220 joint.
Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Military retirement pay in Michigan
Varies
Individuals / Personal Taxes
No. Michigan fully exempts military retired pay from state income tax. Other retirement income: For 2026, with the phase-in complete, all taxpayers may subtract public and private retirement benefits (pensions, 401(k), IRA) up to $67,610 single / $135,220 joint.
Business justification
No. Michigan fully exempts military retired pay from state income tax. Other retirement income: For 2026, with the phase-in complete, all taxpayers may subtract public and private retirement benefits (pensions, 401(k), IRA) up to $67,610 single / $135,220 joint. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions