Michigan Retirement Guide

Overall
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 over 9.9 million people in 2015 with a median age of 39.3 (2 years higher than USA median). 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 Michigan has more facts. (Updated Nov. 2016)

Marquette Park on Mackinac Island

 Michigan Climate
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 household income at just under $49,087, $4000 lower than the United States median. According to MERIC the state has the 3rd lowest cost of living of any state. 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 $127,600 in late 2016. The median home in the Grand Rapids Metro sold for $170,100 in quarter 23of 2016 vs. the national median of $240,900 (NAR).   In Ann Arbor the figure was $247,100. Wealthy suburbs around Detroit such as Grosse Pointe can be more expensive.

Michigan Taxes

Tax Burden: At 9.4% the total tax burden in Michigan is the 25st highest combined tax burden in 2012 according to the Tax Foundation.

Marginal Income Tax Rates. Michigan had a fairly low flat income tax rates at 4.25% in 2015.

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. People born after 1952 face a much more complicated situation, depending on birth year. Those with birth years 1952 - 1956 get some good tax breaks for a few years.  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. See changes in taxation of retirement income. The transition to the new rules are confusing: here is a link to a retirement income tax calculator.

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. Per capita property tax paid was $1320 in 2012.

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 a limited 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.

Free eBook - Baby Boomers Guide to Selecting a Retirement Community - 16 Factors
Download this free eBook and use its fun exercises to help you find your perfect active adult retirement community.

Click on the Michigan Retirement Community reviews on the right. Or to find other state guides to retirement or more on types of retirement communities

 

 
 

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