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Michigan Exempts Income Tax on Tips, Boosting Family Savings

10/9/2025

46 6 Full Breakdown

Center

Whitmer Signs Tax Relief

Gretchen Whitmer, Michigan governor, signed a law exempting Michigan state income tax on tips, overtime, and Social Security.
The measure provides tax relief for working families and seniors, saving about $400 annually.
It aligns with a federal law signed by President Trump and the $81 billion budget funds roads, public safety, and healthcare.

Left

Whitmer Signs Budget

Gretchen Whitmer signed Michigan FY 2026 budget, highlighting bipartisan cooperation on education and infrastructure.
The package allocates nearly $2 billion for road improvements funded by a cannabis tax.
Health and Human Services (HHS) faces $7.6B in cuts. A $3B school aid package raises per-pupil funding to $10,050 and preserves free meals.
Republicans cite transparency and elimination of 2,000 unfilled positions.

History

Historical Context

The Tax Cuts and Jobs Act, signed by President Trump on December 22, 2017, marked a significant shift in U.S. tax policy, reducing the corporate tax rate from 35% to 21%. This $1.5 trillion overhaul prompted states like Michigan to adjust their tax structures, leading to fiscal pressures, exemplified by Michigan's $7.6 billion cuts in Health and Human Services, reflecting broader implications for state budgets.

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Whitmer Signs Tax Relief

Gretchen Whitmer, Michigan governor, signed a law exempting Michigan state income tax on tips, overtime, and Social Security.
The measure provides tax relief for working families and seniors, saving about $400 annually.
It aligns with a federal law signed by President Trump and the $81 billion budget funds roads, public safety, and healthcare.

1 / 3