Michigan · 2027 and beyond
Michigan in 2027 and beyond: what is already law, and what is still open
No tax measure on the ballot. Michigan matches the federal tips and overtime deductions for 2026 through 2028. What is on the 2026 return, what starts with tax year 2027, and what is scheduled or conditional after that.
By Charles Trautman, EA, editor
Need to Know Tax · written from Michigan Department of Treasury sources and the unofficial November 3 election returns, November 12, 2026 · not yet reviewed by a Michigan practitioner
No tax measure on the ballot. Michigan matches the federal tips and overtime deductions for 2026 through 2028. This page keeps apart three things that get mixed together in the news: what is on the 2026 return you file in early 2027, what begins with tax year 2027, and what is scheduled, conditional or still undecided after that. Election figures are the unofficial November 3, 2026 returns and are not final until the state certifies them.
What the voters decided on November 3, 2026
No statewide tax measure was on the November 3, 2026 ballot in Michigan. Nothing voted on that day changes a Michigan return.
This return, next year, and later
| When | What applies |
|---|---|
| The 2026 return, filed in early 2027 | Michigan allows a subtraction equal to the federal deductions for tips and overtime claimed for the same year (Public Act 24 of 2025). |
| A filer born after 1952 who takes the Michigan standard deduction at 67 no longer has it reduced by the Social Security subtraction. | |
| Bonus depreciation follows the old phase-down, not the restored federal 100%. | |
| Starting with tax year 2027 | The tips and overtime subtractions continue. |
| The rate for 2027 is set by the statutory formula and announced in the spring of 2027. | |
| 2028 and later, or conditional | The tips and overtime subtractions end after 2028 unless extended. |
| The Invest in MI Kids surtax petition fell short of signatures for 2026; its backers have said they may try again for 2028. |
Items under 2027 and later do not change the 2026 return. They matter for 2027 withholding, estimated payments and planning. The detail behind each line is in the other Michigan articles.
The 2025 federal law and the Michigan return
Michigan uses a fixed conformity date. The Legislature moved it to January 1, 2025 and then listed what it would not follow, including the restored bonus depreciation and research expensing.
That is the reason a change on the federal return, such as the deductions for tips, overtime and people 65 and older, may or may not show up on the Michigan return. The federal side is in The new deductions for tips, overtime and seniors.
What to watch
The Treasury’s rate announcement in April 2027. When something on this page changes, the change is logged on the updates page with its date.
What to bring
- Your 2026 federal and Michigan returns, once filed, to set 2027 withholding and estimated payments against them
- Your last pay stub of 2026 and the first of 2027, to see whether withholding changed
- Any notice from the state about a 2027 rate, credit or filing change
Questions people ask
Does anything here change the Michigan return I file in early 2027?
Only what is listed under the 2026 return. Everything listed under 2027 or later affects withholding, estimated payments and planning, not the return for 2026.
How will I know if this page changes?
Every change is logged on the updates page with its date and the article it affects. State legislatures meet in early 2027 and some act before the filing deadline.
Michigan, after the election
No tax measure on the ballot. Michigan matches the federal tips and overtime deductions for 2026 through 2028.
Written by Charles Trautman, EA, editor · Need to Know Tax, Lone Tree, Colorado
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Sources and where to check
- Treasury notice, April 15, 2026: 4.25% income tax rate for the 2026 tax year
- Treasury notice, January 6, 2026: new deductions for qualified overtime compensation and qualified tips
- Treasury notice, November 17, 2025: Social Security taxation changes in Public Act 24 of 2025
- Revenue Administrative Bulletin 2026-1: retirement and pension benefits
- Treasury: withholding rate and personal exemption by year ($5,900 for 2026)
- House Fiscal Agency, legislative analysis of HB 4961 (Public Act 24 of 2025)
- Treasury: Homestead Property Tax Credit, 2025 limits