Updated October 5, 2026. Quick answer: No. Michigan has no inheritance tax for a death in 2026. Michigan Treasury says the tax is in effect only for those who “inherited from a person who died on or before September 30, 1993”.
Michigan inheritance tax at a glance
| Item | What the documents say |
|---|---|
| State inheritance tax | None |
| What the documents say | Treasury says the inheritance tax still applies only to heirs of people who died on or before September 30, 1993 |
| State estate tax | None collected: the House Fiscal Agency says Michigan has not collected a state estate tax on new estates since 2005 |
| Source | Michigan Department of Treasury; Michigan House Fiscal Agency; IRS Revenue Procedure 2025-32 |
What the Michigan documents say
Michigan Treasury’s Inheritance Tax FAQ asks whether there is still an inheritance tax and answers that it is still in effect, but only for those who “inherited from a person who died on or before September 30, 1993”. A death in 2026 is outside that window.
The House Fiscal Agency says that after the federal change in 2005 “Michigan has not collected a state estate tax on new estates”.
What an heir in Michigan still faces
The federal estate tax is paid by the estate, with a 2026 basic exclusion amount of “$15,000,000 for calendar year 2026”. Michigan’s estate tax was a credit-based tax: the House Fiscal Agency says “Michigan has not collected a state estate tax on new estates” since the 2005 federal change. CMG’s Michigan estate tax page covers it.
An heir’s basis under 26 U.S.C. 1014(a) is generally the value at “the date of the decedent’s death”. Inherited retirement money is an income tax question: Michigan 401(k) and IRA withdrawals, the inherited IRA RMD calculator and Michigan probate cost cover the rest.
How current the Michigan documents are
Read on October 5, 2026: Inheritance Tax Frequently Asked Questions (Michigan Department of Treasury, dated 2026); Repeal Michigan Estate Tax Act (House Bill 4237 legislative analysis) (Michigan House Fiscal Agency, dated 2021).
What the documents do not say
- Michigan’s Estate Tax Act (MCL 205.201 to 205.256) is still in the compiled laws; this page relies on Treasury’s statement of who the inheritance tax still reaches.
Common mistakes
- Missing the 1993 cutoff; Treasury says the inheritance tax is still in effect for heirs of people who died on or before September 30, 1993.
Related: inheritance tax by state, Michigan estate tax, Michigan probate cost, and how Michigan taxes 401(k) and IRA withdrawals.
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Answer againSources
- Inheritance Tax Frequently Asked Questions: https://www.michigan.gov/taxes/iit/tax-guidance/tax-situations/inheritance-tax-frequently-asked-questions
- Repeal Michigan Estate Tax Act (House Bill 4237 legislative analysis): https://www.legislature.mi.gov/documents/2021-2022/billanalysis/house/pdf/2021-HLA-4237-2351D036.pdf
- Revenue Procedure 2025-32 (Internal Revenue Service): https://www.irs.gov/pub/irs-drop/rp-25-32.pdf
- 26 U.S.C. 1014 Basis of property acquired from a decedent (U.S. Code, 2023 edition, GovInfo): https://www.govinfo.gov/content/pkg/USCODE-2023-title26/html/USCODE-2023-title26-subtitleA-chap1-subchapO-partII-sec1014.htm
Sources: the primary documents linked above, read on October 5, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.