Michigan
#9
retiree-friendly rank
- Social Security
- SS exempt from state tax
- Retirement income
- Retirement income exempt
- Death tax
- None
Prop 1.19% · Sales 6%
2026Michigan vs Ohio Retirement Taxes
Michigan ranks more retiree-friendly than Ohio on Social Security, retirement-income, and estate/inheritance treatment. Compare Social Security, pensions and IRA withdrawals, estate/inheritance taxes, and supporting property and sales rates.
By Sammy S. · Founder · AuthorUpdated for 2026
More retiree-friendly on this model
Michigan ranks ahead
Michigan ranks #9 vs #23 for Ohio. Score gap: 2.50 (lower score = more friendly).
Side-by-side retirement tax scoreboard
Ohio
#23
retiree-friendly rank
- Social Security
- SS exempt from state tax
- Retirement income
- Retirement income taxed
- Death tax
- None
Prop 1.36% · Sales 7.29%
Retirement tax metric comparison
Rankings emphasize income and death taxes. Property and sales rates matter for cash flow but do not drive the retiree-friendliness score.
| Metric | Michigan | Ohio |
|---|---|---|
| Retiree-friendly rank | #9 | #23 |
| Social Security | SS exempt from state tax | SS exempt from state tax |
| Retirement income | Retirement income exempt | Retirement income taxed |
| Estate / inheritance | None | None |
| Estate exemption | — | — |
| Estate top rate | — | — |
| Effective property tax | 1.19% | 1.36% |
| Combined sales tax | 6% | 7.29% |
State rules explained
Why Michigan and Ohio differ for retirees
The gap is rarely one rule. Social Security thresholds, pension exclusions, and estate taxes can each flip which state looks better for a given household.
Michigan rules
Exempts Social Security and, for 2026, shelters qualifying retirement distributions up to published dollar caps.
Michigan does not tax Social Security benefits at the state level. Federal tax rules still apply.
Social Security exempt. For 2026, PA 4 of 2023 phase-in reaches 100%: deduct qualifying retirement/pension benefits up to the published maximum ($67,610 single / $135,220 MFJ per Michigan ORS FAQ — CPI-adjusted). Amounts above the cap remain taxable. Confirm Form MI-1040 / Form 4884 and RAB 2026-1.
- Property
- 1.19%
- Sales
- 6%
Ohio rules
Exempts Social Security; taxes other retirement income above Ohio's low-income band.
Ohio does not tax Social Security benefits at the state level. Federal tax rules still apply.
Social Security exempt. Other retirement income generally taxed (with a 0% band on lower taxable income).
- Property
- 1.36%
- Sales
- 7.29%
Income mix matters
A household living mostly on Social Security may prefer different rules than one drawing large IRA RMDs. Compare Michigan and Ohio against your actual income mix.
Death taxes are separate
Federal estate tax can still apply above about $15M. State estate or inheritance tax is an extra layer in some states.
Property & sales still count
Michigan property 1.19% vs Ohio 1.36%; sales 6% vs 7.29%.
Compare a different pair
Compare any two states
Social Security, pensions/IRA, estate taxes, and supporting property/sales rates.
Related tools
Estimate federal retirement figures
Use Social Security and RMD tools, then apply each state's rules from this comparison.
Michigan vs Ohio retirement tax FAQs
Michigan ranks more retiree-friendly on this site's Social Security, retirement-income, and estate/inheritance score. Also compare property tax (1.19% vs 1.36%) and combined sales tax (6% vs 7.29%).
Michigan: ss exempt from state tax. Ohio: ss exempt from state tax. Federal Social Security tax rules apply in both states.
Michigan: retirement income exempt. Ohio: retirement income taxed.
Michigan: no estate tax. Ohio: no estate tax.
Not always. Property taxes, sales taxes, and estate taxes can offset income-tax savings. Compare total household exposure, not income tax alone.
Federal income tax, Medicare IRMAA surcharges, and the federal estate tax framework do not depend on the state of residence in the same way state income tax does. State rules sit on top of federal rules.
Educational comparison only. Confirm current state return instructions and estate planning rules before relocating.