Puzzle pieces with word tax

Michigan Taxes

According to Kiplinger website, “33 States with No Estate Taxes or Inheritance Taxes,
Even with the federal exemption from death taxes raised, retirees should pay more attention to estate taxes and inheritance taxes levied by states.” by: Rocky MengleSandra BlockDavid Muhlbaum February 15, 2022

In Michigan:

Overall Rating for Taxes on Retirees: Not tax-friendly.

Sales Tax: 6% state levy. No local taxes.

Groceries: Exempt, but prepared food is taxable
Clothing: Taxable Motor Vehicles: Taxable
Prescription Drugs: Exempt

Income Tax Range: Michigan has a flat tax rate of 4.25%. Cities can levy income taxes as well, on both residents and non-residents (who are taxed 1/2 the rate of residents).

Taxes on Social Security: Social Security benefits are not taxed by the state. Although taxpayers born after 1952 can claim a $20,000 deduction ($40,000 for joint filers) in lieu of the Social Security exemption and other tax breaks.

Property Taxes: In Michigan, the median property tax rate is $1,448 per $100,000 of assessed home value.

For more information on these and other Michigan state taxes, see the Michigan State Tax Guide for Retirees.