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New Developments for Tax Year 2023

Homestead Property Tax Credit - Incorrect Printed Value

The printed tax year 2023 booklets contain an incorrect value. The Homestead Property Tax Credit maximum taxable value for tax year 2023 is $154,400. This has been corrected on the Taxes website and all electronic versions of the booklets and forms.

Tax Year Updates


Tax Rate 4.05%
Personal Exemption Amount $5,400
Special Exemption
Note: Totally and permanently disabled may not be claimed if the taxpayer was age 66 by June 30, 2023
Qualified Disabled Veteran Deduction $400
Exemption for Number of Certificates of Stillbirth from MDHHS $5,400

2023 Retirement & Pension Estimator

Senior Interest, Dividend and Capital Gains

Single Filer $13,712 Jointly Filed $27,424

Michigan Retirement & Pension Deduction – Tiered Structure Subtraction

Single Filer Jointly Filed
born before 1946
private pension limit up to $61,518 $123,036
public pension limit unlimited unlimited
born 1946 - 1952 standard deduction against all income 1 $20,000 $40,000
born 1953 - 1956 standard deduction election 1 2 $20,000 $40,000
born after 1956 pension not deductible 1 3 $0 $0

1 Taxpayers who receive benefits from a deceased spouse, see “Retirement Benefits from a Deceased Spouse” and “Retirement Benefits Election for Tier 2 and Tier 3 Surviving Spouses” in the MI-1040 instruction booklet.
2 Against all income or personal exemption amount and Social Security, Military compensation, Michigan National Guard retirement benefits and railroad retirement benefits included in AGI.
3 Taxpayers in Tier 3 who receive pension benefits from employment with governmental agencies not covered by the Social Security Act may be eligible for a pension deduction. See instructions for Form 4884.

Michigan Retirement and Pension Deduction – Qualified Fire, Police, and Correction Retiree Subtraction

Read Retirement and Pension Benefits for information on who qualifies for this subtraction.

Single Filer Jointly Filed
no age requirement must be a qualified distribution
private pension limit $61,518 $123,036
public pension limit unlimited unlimited

Michigan Retirement and Pension Deduction – Phase-In Subtraction

Read Retirement and Pension Benefits for information on who qualifies for this subtraction.

Single Filer Jointly Filed
born January 1, 1946 - December 31, 1958 up to 25% of the private pension limit $15,380 $30,759

Homestead Property Tax Credit

Maximum Taxable Value $154,400
Total Household Resources (THR) Limit $67,300
Phase-out begins when Total Household Resources exceeds $58,300
Credit Limit $1,700

Note: Totally and permanently disabled may not be claimed if claimant was age 66 by June 30, 2023.

$58,301 or less 100% (1.00)
$58,301 - $59,300 90% (0.90)
$59,301 - $60,300 80% (0.80)
$60,301 - $61,300 70% (0.70)
$61,301 - $62,300 60% (0.60)
$62,301 - $63,300 50% (0.50)
$63,301 - $64,300 40% (0.40)
$64,301 - $65,300 30% (0.30)
$65,301 - $66,300 20% (0.20)
$66,301 - $67,300 10% (0.10)
$67,301 - above 0% (0.00)

Home Heating Costs

Maximum Heating Costs $3,500
New Heat Provider Wesco, Inc.

Note: Totally and permanently disabled may not be claimed if claimant was age 66 by June 30, 2023.

Home Heating Credit Tables

Standard Allowance
Exemptions Standard Allowance Income Ceiling
0 or 1 $562 $16,043
2 $760 $21,700
3 $958 $27,357
4 $1,156 $33,013
5 $1,354 $38,671
6 $1,552 $44,329
+$198 for each exemption over 6 +$5,657 for each exemption over 6
Alternate Credit Computation
Exemptions Income Ceiling
0 or 1 $17,534
2 $23,595
3 $29,661
4 or more $31,818

New Forms and Form Updates

Michigan residents now have the option to join Michigan’s organ donor registry when they file their individual income tax return (MI-1040). The Anatomical Gift Donor Registry Schedule was added to Voluntary Contributions, Form 4642. Anyone can opt into this voluntary contribution. Individuals who have previously elected to donate their organs do not need to complete the Anatomical Gift Donor Registry Schedule.

Annual Instruction Booklet Mailings

If you filed a paper return last tax season (tax year 2022) the following forms were mailed to you:

  • MI-1040 (Michigan Individual Income Tax Return)
  • MI-1040CR-2 (Homestead Property Tax Credit Claim for Veterans and Blind People)
  • MI-1040CR-5 (Farmland Preservation Tax Credit)
  • MI-1040CR-7 (Home Heating Credit Claim)

Taxpayers who e-filed or had a tax preparer complete their forms will not be mailed any booklets. You can find tax year 2023 forms and instructions on Treasury’s Taxes website or in the following places:

  • most public libraries.
  • post offices in Northern Michigan.
  • Michigan Department of Health and Human Services (MDHHS) county offices.

You can call the Treasury Individual Income Tax Contact Center to request forms be mailed to you, however, this service is not available until mid-February.

Other Developments

Payment Processing System Changes

Treasury is able to offer electronic tax payment options by utilizing our banking contractor’s payment platform. In September 2023, JP Morgan Chase began launching refreshed payment processing platforms for Treasury systems, including Individual Income Tax. Their new payment system, Paymentus, takes advantage of the latest design and technology while prioritizing continuity of electronic payment access and minimal disruption to normal processes. Visit Pay Income Taxes Online to make a Michigan individual income tax payment by check, debit, or credit as well as confirm electronic payment status.

IVR System

The Income Tax Automated Call System (IIT IVR) is the system that answers the Individual Income Tax Customer Contact line (517-636-4486) and directs calls to ensure that taxpayers receive accurate, timely information from Treasury representatives. Please share feedback about your experience using this system by taking the Income Tax Automated Call System Survey.

Taxpayer Rights & Responsibilities

Treasury Offset Program (TOP)

Treasury has entered into an agreement with the IRS to intercept, or offset, federal tax refunds and payments for Michigan Department of Treasury income tax debts. For more information, visit Treasury Offset Program.

Property Tax Credits / Refunds

Michigan homestead property tax credit and state refunds from the Michigan Department of Treasury received in 2023 may be taxable on your 2023 U.S. 1040. If you have questions about the taxability of your property tax credit or state refunds for federal tax purposes, call the IRS at 800-829-1040.

Statute of Limitations for Prior Year Returns and Credits

A taxpayer has 4 years from the due date of the original return to file and claim a refund with the Michigan Department of Treasury. For example, you must file the 2019 Michigan Individual Income Tax Return (MI-1040/MI-1040X-12) and/or a Homestead Property Tax Credit (MI-1040CR/MI-1040CR-2) on or before July 15, 2024.

Contacting Treasury

Taxpayers and Representatives with Power of Attorney (Form 151) Authorization:

Follow the instructions on Prepare to Contact Treasury

Tax Preparers with Check-the-Box Authorization:

Check-the-Box Authorization is applicable only to the individual named as the preparer on the tax return and does not extend to others in the preparer’s office or firm. This authorization does not take the place of a form designating power of attorney. Check-the-box authorization on a tax return authorizes Treasury to communicate with the tax preparer concerning the contents of the return they prepared. In addition, it authorizes the tax preparer to:  

  • provide Treasury with information missing from the return.
  • call Treasury to obtain information about the status of a return submitted for processing, the status of a refund, and payments related to the return.
  • request copies of notices related to the return.
  • respond to notices related to matters such as math errors, return preparation, and any adjustments made to the return.

To obtain information about an account from Treasury, you will need the following information from a taxpayer's return:

  1. tax preparer’s name
  2. tax preparer’s PTIN, FEIN, or SSN
  3. tax preparer’s and/or firm address