Does Michigan Have an Estate or Inheritance Tax?

No. Michigan has no state estate tax and no current state inheritance tax. For most recent deaths, the estate owes nothing to Michigan in death taxes, and probate does not begin with a Michigan inheritance-tax filing. The older state inheritance tax usually matters only for older deaths or after-discovered assets from an older estate.

So if there is no state tax, what should a family actually check? Three things: the federal estate tax threshold for high-value estates, whether another state's inheritance tax could reach a Michigan heir who inherits property located there, and step-up in basis before any inherited property is sold. The estate may also need final income tax work, estate income tax review, property tax review, or real estate transfer tax review.

For the full breakdown, see our Michigan estate and inheritance tax guide; this post answers the common question and what to check. If inherited property may be sold, pair it with Michigan step-up in basis.

Michigan Inheritance Tax Is an Older-Death Issue

Michigan Treasury says Michigan inheritance tax remains in effect only for people who inherited from someone who died on or before September 30, 1993.

That date matters when a family finds an old asset years later. Treasury says a letter should be sent within 90 days of discovering an after-discovered asset, with asset details and date-of-death value information.

For a recent death, the old inheritance-tax rule usually does not drive the probate plan.

Federal Estate Tax

Federal estate tax is separate from Michigan probate. For 2026 deaths, the IRS estate tax page lists a filing threshold of $15,000,000.

A federal filing can also matter for portability or other federal choices. High-value estates may need a tax professional early because valuation, deadlines, deductions, and elections can change the filing plan.

Income Tax After Death

The decedent may need a final individual income tax return. An estate may also need a separate tax return if it earns income after death.

Post-death income can include:

• Interest
• Dividends
• Rent
• Business income
• Sale income from estate assets

Keep account statements and closing documents so a tax preparer can separate pre-death income from post-death estate income.

Real Estate Transfer Tax

Michigan real estate transfers can require transfer tax review. MCL 207.526 lists exemptions from state real estate transfer tax, but a deed may still need county recording review, transfer tax documentation, and local filing steps.

Do not assume an exemption applies without checking the deed, transfer facts, and county register of deeds instructions.

Records to Keep

Keep:

• Date-of-death account statements
• Real estate valuations or appraisals
• Business ownership records
• Sale closing statements
• Estate bank statements
• Funeral and administration expense receipts
• Distribution records
• IRS and Michigan Treasury letters

Clear records help with tax filings and beneficiary questions.

When to Ask a Tax Professional

Get tax help when an estate has a high value, business assets, rental property, farm property, real estate sales, securities, out-of-state property, or any after-discovered asset from a pre-October 1993 death.

For costs outside tax, compare Michigan probate costs and court fees. For real estate and title steps, use Transfer Property After Death in Michigan and Michigan transfer-on-death deed alternatives. For planning before death, compare Michigan estate planning basics and Michigan revocable living trust.

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Sources:

• Title: Inheritance Tax Frequently Asked Questions. Publisher: Michigan Department of Treasury. Publication Date: not listed. URL: https://www.michigan.gov/taxes/iit/tax-guidance/tax-situations/inheritance-tax-frequently-asked-questions
• Title: Estate Tax. Publisher: Internal Revenue Service. Publication Date: page updated for 2026 threshold table. URL: https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax
• Title: Estate and Gift Taxes. Publisher: Internal Revenue Service. Publication Date: not listed. URL: https://www.irs.gov/businesses/small-businesses-self-employed/estate-and-gift-taxes
• Title: MCL 207.526, Written instruments and transfers of property exempt from tax. Publisher: Michigan Legislature. Publication Date: Michigan Compiled Laws current through PA 9 of 2026. URL: https://legislature.mi.gov/doc.aspx?mcl-207-526

This article provides general Michigan tax information. Ask a tax professional about filing duties, valuation, elections, deductions, and deadlines for a specific estate.