© 2025 Michigan State University Board of Trustees
Public Media from Michigan State University
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Mich. seniors plotting costs of pension income tax

By AP

LANSING, MI –
Now that many retirees know they'll have to start paying Michigan state taxes on their pensions next year, they're scrambling to figure out how the law affects them.

The law sets up three ways they'll be taxed, depending on their age. Those born before 1946 won't pay state taxes on their retirement income.

But others will, although Social Security payments and military pensions will be exempted.

The change is expected to bring in $330 million in 2012, an average of $870 per tax return filed by retirees, although the amount will vary by income. It will help cover revenues lost to a business tax break.

Republican Gov. Rick Snyder says Michigan can't afford what was the nation's most generous senior tax breaks.

Local journalism matters—and it’s at risk.


WKAR brings you trusted news, without barriers—no paywalls, no corporate spin. But now, federal funding that helps make it all possible is on the chopping block. Your support is more important than ever. Stand up for independent journalism in mid-Michigan—make your gift today.