State Reps. Carol Glanville (D-Walker), Phil Skaggs (D-East Grand Rapids), Kristian Grant (D-Grand Rapids), Rachel Hood (D-Grand Rapids), Gov. Gretchen Whitmer and others pose with a tax refund check for seniors at a Lowering MI Costs event in Grand Rapids.

GRAND RAPIDS, Mich., Jan. 11, 2024 — State legislators and Gov. Gretchen Whitmer joined together for a retirement tax rollback press event to discuss the positive impacts of this much-deserved tax relief on retirees across Michigan. The new law phases out taxes on nearly all forms of retirement income providing over 500,000 households in Michigan an average tax cut of $1,000 per year.

Speaking at the event, state Rep. Phil Skaggs (D-East Grand Rapids) said, “The retirement tax cut not only helps seniors, it helps all families. As I speak with my constituents, it’s clear we all share a common goal — we all want our families to be happy, healthy, safe and nearby. By repealing the retirement tax and putting money back in the pockets of seniors, we’re helping grandparents have more financial abilities to stay here in Michigan. We are working on retaining and attracting young people to Michigan, but the retirement tax cut is about grandma retention!”

“The repeal of the retirement tax was one of the top concerns I heard from constituents when I began my work in the House. Their personal stories of struggling to make ends meet were a driving force behind the continued commitment to get this legislation across the finish line,” said state Rep. Carol Glanville (D-Walker). “I am proud to provide all retirees, especially public service workers, teachers and first responders, with the financial security they earned through all their years on the job.”

House Bill 4001, now Public Act 4 of 2023,  phases out state-level taxes on nearly all forms of retirement income. Taxes on those with public pensions were initially implemented in 2011 to reduce corporate income taxes during the Republican-led Snyder administration.

“One of our top priorities is helping Michiganders make ends meet,” said state Rep. John Fitzgerald (D-Wyoming). “An extra $1,000 a year will be a gamechanger for seniors struggling to pay at the pump, at the pharmacy counter and at the grocery store.”

Protecting the economic security of seniors is part of Michigan Democrats’ Lowering MI Costs platform, which addresses the higher cost of living. Other initiatives to lower costs for Michigan families passed into law include free meals for public school students, lowering the cost of preschool, expanding tax credits for low-income workers and weatherizing homes to lower utility bills.

“House Dems have rolled back taxes on retirement income because we can’t let our seniors slip into poverty. We did the right thing by reversing a Snyder-era policy that should never have gotten to the Governor’s desk. It’s unfair to penalize our seniors by taxing their IRAs, pensions and brokerage accounts. I’m proud to stand with our seniors and repeal the retirement tax,” state Rep. Rachel Hood (D-Grand Rapids).

“People moved from other states to Michigan to retire here because we didn’t tax pensions, and then they had the rug pulled out from under them,” said state Rep. Kristian Grant (D-Grand Rapids). “As we focus on developing every aspect of the state economy and lowering the cost of living, repealing taxes on retirement is one way to bring people to Michigan while also supporting those who have been here for generations.”