Don't leave money on the table. Here are the Michigan-specific credits and deductions you may qualify for.
2023 Update: Michigan Retirement Tax Repealed!
Michigan seniors can now deduct more retirement income. If you're 67+, you may be able to deduct all qualifying pension and retirement income. This can save retirees up to $1,000+ annually. We'll make sure you get the full benefit.
Michigan Form MI-1040CR
Homestead Property Tax Credit
This credit helps Michigan residents offset the cost of property taxes on their primary residence. Both homeowners AND renters may qualify.
Who Qualifies?
Michigan residents who own or rent their primary residence
Homeowners: Property taxes must be on your homestead
Renters: 20% of your rent is considered property tax
Total household resources (income) under $63,000
How Much Can You Get?
The credit is based on the amount your property taxes exceed 3.2% of your household income.
Up to $1,700 credit
What You'll Need
Property tax bill (for homeowners)
Certificate of rent paid or landlord's name/address (for renters)
All income information for everyone in the household
Pro Tip: Even if you don't owe Michigan income tax, you can still claim this credit and receive a refund!
Michigan Form MI-1040CR-7
Home Heating Credit
This credit helps low-income households pay for heating costs during Michigan's cold winters. It's paid directly to you, not your utility company.
Who Qualifies?
Michigan residents responsible for heating costs
Total household resources under $16,614 (varies by exemptions)
Must not be claimed as a dependent on someone else's return
Homeowners, renters, and those living with others may qualify
How Much Can You Get?
The credit amount varies based on income, heating costs, and number of exemptions.
Typically $25 - $450
Important: This is a separate form from your income tax return. We can help you file both together to maximize your refunds.
Michigan EITC
Michigan Earned Income Tax Credit
Michigan offers a state EITC equal to 30% of your federal Earned Income Tax Credit. If you qualify for the federal EITC, you automatically qualify for the Michigan credit.
2024 Federal EITC Limits (Filed in 2025)
Children
Max Income (Single)
Max Credit
0 children
$18,591
$632
1 child
$49,084
$4,213
2 children
$55,768
$6,960
3+ children
$59,899
$7,830
Example: If your federal EITC is $4,000, your Michigan EITC is an additional $1,200 (30% × $4,000).
Important for Some Residents
Michigan Local City Income Tax
Michigan is one of few states where some cities levy their own income tax in addition to state tax. If you live or work in one of these cities, you may owe local taxes.
Cities with Local Income Tax
24 Michigan cities currently impose a local income tax:
Albion
Battle Creek
Big Rapids
Detroit
East Lansing
Flint
Grand Rapids
Grayling
Hamtramck
Highland Park
Hudson
Ionia
Jackson
Lansing
Lapeer
Muskegon
Muskegon Heights
Pontiac
Port Huron
Portland
Saginaw
Springfield
Walker
Wayne
Tax Rates
Taxpayer Type
Detroit Rate
Other Cities
Residents
2.4%
1.0%
Non-Residents (work in city)
1.2%
0.5%
Note: Even if you don't live in one of these cities, you may owe local tax if you work there. We'll help ensure you're compliant and not overpaying.
Other Michigan Deductions
Retirement & Pension Income
Depending on your age and birth year, you may be able to deduct:
Public pension income (government, military)
Private pension income (based on birth year tiers)
401(k), IRA, and other retirement distributions
Social Security is not taxed by Michigan
Other State Deductions
Military pay — Active duty pay is exempt from Michigan tax
Native American income — Certain tribal income exemptions
Political contributions — Up to $50 ($100 joint) for MI candidates
Let Us Find Your Credits
Don't miss out on money you're owed. We know Michigan tax law inside and out.