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Tax Year 2025 Information

Tax Year 2025 Information

  • Year-Specific Guidance

    General

    Tax Rate 4.25%
    Personal Exemption Amount $5,800
    Special Exemption
    Note: Totally and permanently disabled may not be claimed if the taxpayer was age 66 by February 28, 2025    		 $3,400
    Qualified Disabled Veteran Deduction $500
    Exemption for Number of Certificates of Stillbirth from MDHHS $5,800

    2025 Retirement & Pension Estimator

    Senior Interest, Dividend and Capital Gain

    Filing Type Limit
    Single Filer
    		 $14,688
    Jointly Filed $29,376

    2025 Retirement and Pension Subtraction

    Filing Type Private Retirement and Pension Limit 1 Phase-In Limit 2 Michigan Standard Deduction 3
    Single Filer $65,897 $49,423 $20,000
    Joint Filer $131,794 $98,846 $40,000

    1 Retirees born before 1946 and Qualified Safety Officers, or a qualified surviving spouse
    2 Retirees born after 1945 through 1966 or a qualified surviving spouse
    3 Individuals born after 1945 through January 1, 1959

    Homestead Property Tax Credit

    Maximum Taxable Value $165,400
    Total Household Resources (THR) Limit $71,500
    Phase-out begins when Total Household Resources exceeds $62,500
    Credit Limit $1,900

    Note: Totally and permanently disabled may not be claimed if claimant was age 66 by February 28, 2025.

     

    TOTAL HOUSEHOLD RESOURCES (THR) PERCENTAGE
    $62,500 or less 100% (1.00)
    $62,501 - $63,500 90% (0.90)
    $63,501 - $64,500 80% (0.80)
    $64,501 - $65,500 70% (0.70)
    $65,501 - $66,500 60% (0.60)
    $66,501 - $67,500 50% (0.50)
    $67,501 - $68,500 40% (0.40)
    $68,501 - $69,500 30% (0.30)
    $69,501 - $70,500 20% (0.20)
    $70,501 - $71,500 10% (0.10)
    $71,501 or above 0% (0.00)

    Home Heating Credit

    Maximum Heating Costs = $3,765
    Note:     Totally and permanently disabled may not be claimed if claimant was age 66 by February 28, 2025.

    Home Heating Credit Tables

    Standard Allowance
    Exemptions Standard Allowance Income Ceiling
    0 or 1 $604 $17,243
    2 $815 $23,271
    3 $1,207 $29,329
    4 $1,239 $35,385
    5 $1,451 $41,443
    6 $1,662 $47,471
    >6 +$ for each exemption over 6 +$6,057 for each exemption over 6
    Alternate Credit Computation
    Exemptions Income Ceiling
    0 or 1 $18,595
    2 $25,018
    3 $31,449
    4 or more $34,227

    School District Codes

    School District Codes Updated for Tax Year 2025

  • New Tax Resources and Web Content

    New and Improved Michigan Treasury eServices

    On November 12, 2025, Michigan Treasury eServices replaced the individual income tax (IIT) functionality previously available in several other Treasury web platforms (IIT eService, ePayments, and Tax Professionals eService). Michigan Treasury eServices provides a single, secure pathway to free file the state income tax return, make online payments, check tax refund status, view tax records, respond to a letter, and more. Whether you are the taxpayer, a tax professional, or just helping someone out, you can use Michigan Treasury eServices this tax season.

    Taxes Website Redesigns

    Treasury has been busy this year working piece-by-piece to make our website more navigable and useful for you. Check out our recently updated webpages to see what this change looks like:

    • Individual Income Tax

  • Annual Instruction Booklet Mailings

    If you filed a paper return last tax season (tax year 2024) 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 2025 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.

  • 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 2025 may be taxable on your 2025 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 2021 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 April 18, 2026.

    Contacting Treasury

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

    Follow the instructions on Contact Individual Income Tax

    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