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Michigan Does Not Tax Military Retirement

Military retirement and pension benefits are subtracted from Michigan taxable income in full. Survivor benefits are addressed separately by Treasury's military FAQ, including where they pass to a beneficiary who is not the spouse.

Verified August 27, 2026

What this benefit is

Military retirement and pension benefits are subtracted from Michigan taxable income in full. Survivor benefits are addressed separately by Treasury's military FAQ, including where they pass to a beneficiary who is not the spouse.

What it's worth: The whole of your military pension, untaxed

  • The saving is your marginal state rate applied to the amount excluded, so it depends on your bracket. We do not publish a figure that would misstate it.
  • Treasury's Military Personnel FAQ hub carries published answers on military retirement benefits, on survivor benefits, and on survivor benefits passing to a non-spouse beneficiary.
  • The non-spouse beneficiary case is treated separately from the spouse case, so a child receiving a survivor benefit should read that answer rather than assuming the spouse rule applies.

Who is entitled to it

  • You receive military retired pay.
  • Your home is in Michigan.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

Deadline: April 15, with your return
  1. 1Claim the subtraction or deduction on your state return for the year.
File with
Your state revenue department, with your annual return
Documents you will need
form 1099 r
Annual
Claimed once a year.
Known gapWe publish the exemption without a statutory section because the Treasury guidance is what we read. The subtraction is long-standing and uncontroversial, but a reader wanting the code section should ask Treasury.

Sources

Why only one source type: We publish this record to describe how the state taxes military income rather than to route a filing, so the administering department's own guidance is sufficient.

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.