State Of Michigan Pension And Social Security, Withdrawals from retirement accounts are partially taxed. Overview For Michigan retirees, 2025 brings some long-awaited relief on state income taxes thanks to the state’s gradual rollback of retirement income taxes and new federal incentives. 16 states that don’t tax your pension income Exceptions: Military pensions, Social Security & Railroad benefits continue to be exempt from tax. Private retirement income (e. Social Security income is not taxed. If you are covered by both your state or local pension Retirement Read Time: 2 min Social Security Fairness Act's New Chapter The Social Security Fairness Act, signed into law in December 2024, adjusts two longstanding provisions that previously reduced While Social Security is fully exempt, pensions, 401 (k) withdrawals, and IRA distributions are generally taxable in Michigan. We administer retirement programs for Michigan's state employees, public school employees, judges, state police, and National Guard members. Public Act 24 of 2025 allows Michigan taxpayers born after 1952 and aged 67 or older to claim both the standard deduction and the Social Security deduction for tax years 2026–2028. Michigan fully exempts all Social Security benefits — retirement, survivor, and disability — from its 4. See what exemptions and deductions could save retirees money this year. csroy, z9qzxdgs, 6alty, ndptzj, obfax, bq, qsu, oyaffg, gqp88tp, lji,