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Does Michigan Have an Estate Tax? (2026)

Updated October 5, 2026. Quick answer: No. Michigan collects no estate tax on a death in 2026. The House Fiscal Agency’s analysis of a bill to repeal the Michigan Estate Tax Act says “Michigan has not collected a state estate tax” on new estates since the federal credit ended in 2005. The federal exclusion is $15,000,000 for 2026.

Putting a loan in writing? The interest limit, the signing rules and the time limit to sue, from the state’s own statutes: Michigan promissory note.

Naming a beneficiary on a brokerage account or a vehicle title is covered here: transfer-on-death registration in Michigan.

Inheriting from, or planning for, someone in this state? Whether the state has an inheritance tax, from its own tax documents: Does Michigan have an inheritance tax?.

Michigan estate tax at a glance

ItemWhat the documents say
State estate taxNone
WhyMichigan’s tax was tied to the federal credit, which was eliminated in 2005; the Act remains on the books
State inheritance taxOnly for heirs of a person who died on or before September 30, 1993
Federal estate tax basic exclusion amount, 2026$15,000,000
SourceMichigan House Fiscal Agency; Michigan Department of Treasury; Michigan Legislature; IRS Revenue Procedure 2025-32

Why Michigan has no estate tax

The analysis explains that Michigan’s tax depended on the federal credit: because the estate tax is determined by the credit on the federal return, and “the state credit was eliminated in 2005”, the tax no longer generates ongoing revenue. The Legislature’s site still lists the Michigan Estate Tax Act (Act 188 of 1899).

Does Michigan have an inheritance tax?

The Department of Treasury’s inheritance tax FAQ says the tax is still in effect, but only for those who inherited from a person who “died on or before September 30, 1993”. It does not apply to later deaths.

CMG’s inheritance tax by state page covers the beneficiary side.

What applies to a Michigan estate instead

Federal estate tax is separate. Revenue Procedure 2025-32 says the One Big Beautiful Bill Act, section 70106, increased the “basic exclusion amount to $15,000,000 for calendar year 2026”.

An estate of $3,000,000 in Michigan owes $0 of state estate tax, and $3,000,000 is below the federal $15,000,000.

Probate: Michigan probate cost. Retirement accounts: how Michigan taxes 401(k) and IRA withdrawals.

What the documents do not say

  • The House Fiscal Agency’s 2021 analysis is the only document read that says Michigan has collected no estate tax since 2005, and it is not a Treasury statement. The Legislature’s site still lists the Michigan Estate Tax Act, and no document read shows it repealed.

Common mistakes

  • Reading the existence of the Michigan Estate Tax Act as a tax in force; its amount is tied to a federal credit that was eliminated.
  • Assuming the state answer settles the federal one, or the answer for property held in another state.

Related: estate tax by state, inheritance tax by state, and probate cost by state.

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Sources

Sources: the primary documents linked above, read on October 5, 2026. General information, not tax advice. Your own facts decide the outcome, and an estate attorney, a tax preparer or the state agency itself is the right place to confirm anything consequential.

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