Skip to main content
Are military retirement benefits exempt from Michigan individual income tax?

Are military retirement benefits exempt from Michigan individual income tax?

Military retirement benefits paid to retirees of the armed forces of the United States for services performed while a member are exempt from Michigan individual income tax. Military retirement benefits may be deducted on Schedule 1 to the extent they are included in adjusted gross income. As with other pensions, only the participant, or in the case of death or disability, his or her surviving spouse, may claim the subtractions.

Note: Military retirement benefits must be reported on the Schedule W even if no Michigan tax was withheld.

Note: If you receive a civilian pension from the military, if eligible, you may claim it on Pension Form 4884.