Roth conversion taxes in Michigan (2026)
By Mario Bailey · Published · Last reviewed
Michigan taxes Roth conversions as ordinary income at a flat 4.25%. A conversion adds to your state taxable income in the year you convert, on top of federal tax. The table below shows the computed Michigan tax on a $50,000 conversion at three baseline income levels, using 2026 rates.
Computed example: $50,000 conversion
State tax only (federal not included), age 66, standard deduction, no other state adjustments. Computed with the same functions the calculator uses.
| Filing status | Baseline income | State tax without conversion | With $50,000 conversion | Tax on the conversion | Effective rate |
|---|---|---|---|---|---|
| Single | $40,000 | $1,462 | $3,587 | $2,125 | 4.3% |
| Single | $80,000 | $3,162 | $5,287 | $2,125 | 4.3% |
| Single | $150,000 | $6,137 | $8,262 | $2,125 | 4.3% |
| Married filing jointly | $40,000 | $1,224 | $3,349 | $2,125 | 4.3% |
| Married filing jointly | $80,000 | $2,924 | $5,049 | $2,125 | 4.3% |
| Married filing jointly | $150,000 | $5,899 | $8,024 | $2,125 | 4.3% |
Social Security and retirement income
Michigan does not tax Social Security benefits. A conversion can still raise the federally taxable share of your benefits through the provisional income formula. Michigan also excludes up to $20,000 of retirement income for filers age 67 and over, which can shelter part of a conversion depending on how the state defines eligible retirement income.
FAQ
Does Michigan tax Roth conversions?
Yes. Michigan taxes Roth conversions as ordinary income at a flat 4.25%. Federal tax applies on top.
Does Michigan tax Social Security benefits?
No. Social Security benefits are not subject to Michigan income tax.
What is the top Michigan rate on a conversion in 2026?
4.25% at the highest flat rate.
Model your Michigan conversion in the calculator
Rate data source: https://www.michigan.gov/treasury/reference/taxpayer-notices/2026/04/15/425-income-tax-rate-for-individuals-and-fiduciaries-in-2026-tax-year (MI Treasury notice: 4.25% for 2026)