Michigan Best Places to Retire - A Guide
If you have been looking for the best places to retire in Michigan we can help you make an informed choice. This website will give you useful data and opinions about the best places to retire in Michigan, including the top active adult retirement communities. This mid-western state had just under 9.9 million people in 2012. It has several large cities such as Detroit, many mid-sized cities like East Lansing, and the sparsely inhabited and very wild Upper Peninsula (UP). Michigan is surrounded by 4 of the 5 Great Lakes and reportedly has the longest fresh water coastline in the world. The Wikipedia entry for Michiganhas more facts.
Marquette Park on Mackinac Island
The Michigan climate is called humid-continental. There are 4 seasons. Summers are hot and winters are cold with frequent snowstorms. The southern part of the state is a bit warmer, and the UP is notorious for frigid weather.
Economy and Real Estate Values
Michigan's per capita income at just under $34,500 is slightly higher than the United States average. Median home prices are quite less expensive than in rest of the U.S. Thanks to the state's well-publicized economic woes, the statewide median as reported by Zillow was $96,500 in late 2012. The median home in the Grand Rapids Metro sold for $115,000 in quarter 1 of 2013 vs. the national median of $186,000 (NAR). Wealthy suburbs around Detroit such as Grosse Pointe can be more expensive.
Tax Burden: Total tax burden in Detroit is among the highest of all large cities at 10.5%, thanks mostly to high property taxes. Michigan had the 21st highest combined tax burden in 2009.
Marginal Income Tax Rates. Michigan has one of the lowest income tax rates at 4.25% in 2013.
Retirement Income and Social Security exemption. Prior to 2011, Michigan did not tax income from public pensions, 401k's, 457's, IRA's, private pensions less than about $45,000.00 annually, or social security income. In 2011, those 67 years old as of that time remained untaxed as before. Those not 67 years of age at the start of 2012 but born 1952, not taxed on social security and pensions taxed after $20,000.00 individual or $40,000 couples. When people born after 1952 start turning 67 in 2020 they have the choice of the $20,000/$40,000 exemption or to be exempt on social security and military pensions. They will be fully taxed on all pensions , IRA's, 401k's, and capital gains.
Sales Tax: State sales tax is 6% there is no local or city tax.
Property Taxes: Property in Michigan is usually assessed at 50% of its true cash value.
Homestead Exemption. The Michigan Homestead Exemption program provides some property tax relief on a principal residence to eligible taxpayers.
Estate and/or Inheritance Taxes. There is no inheritance tax but there is an estate tax.
Link to Michigan Department of Treasury
Certified Retirement Communities
Michigan does not have a certified retirement community program.
Best retirement communities in Michigan
Michigan can be a great state for active adults and people over 50, particularly if they like living in a college town like East Lansing, Ann Arbor, or Ypsilanti. Active adults who enjoy living near a lake will find many great retirement communities such as beautiful Charlevoix or the popular tourist town of Holland. Topretirements will be profiling other Michigan towns that make great retirement communities in the coming months.
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