Michigan's 4.25% flat income tax, pension exemption rules by birth year, and property tax comparison — the full picture for Michigan retirees eyeing South Hillsborough County.
Michigan has a significant presence in Sun City Center's community mix — the state sends retirees south in large numbers, particularly from Metro Detroit, Grand Rapids, and the Flint-Saginaw corridor. The financial case is real but has some Michigan-specific nuances that are worth understanding before you move.
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Talk to a Specialist →Michigan has a flat income tax rate of 4.25% on most income. Unlike New York or Ohio, there's no graduated rate — everyone pays the same percentage. For retirement income, Michigan's treatment depends heavily on your birth year, creating a three-tier system that has confused Michigan retirees for years.
Michigan changed its pension taxation rules in 2011, creating a birth year-based system:
Michigan also updated pension tax rules starting in 2023 — the phase-in of lower taxes for younger retirees has been modified. Verify the current rules with a Michigan tax professional before moving, as the specific thresholds and phase-ins have changed in recent legislative sessions.
Michigan property taxes vary significantly by county and local millage. The state has a homestead exemption (Principal Residence Exemption or PRE) that reduces school operating millage by 18 mills for primary residences. Effective rates after PRE typically run 1.0–1.8% in suburban areas.
| Michigan County | Home Value | Annual Tax (est.) | Hillsborough FL Equivalent |
|---|---|---|---|
| Oakland County (Metro Detroit) | $380,000 | ~$5,700 (1.5%) | ~$4,475 on $340K FL home |
| Macomb County | $290,000 | ~$4,060 (1.4%) | ~$3,850 on $300K FL home |
| Kent County (Grand Rapids) | $320,000 | ~$4,480 (1.4%) | ~$3,850 on $300K FL home |
| Genesee County (Flint) | $170,000 | ~$2,890 (1.7%) | ~$3,580 on $280K FL home* |
*Flint-area sellers with lower equity may not be able to fully cash-purchase at the same price point as other Michigan markets. Property taxes may be similar or slightly higher in Florida for lower-equity buyers purchasing at entry-level price points.
Michigan's Proposal A (1994) capped annual taxable value increases at the lesser of 5% or inflation — similar to Florida's Save Our Homes 3% cap. Long-time Michigan homeowners may have a significant gap between their taxable value and their home's state equalized value. When they sell, the taxable value resets to 50% of the new purchase price — eliminating the accumulated cap benefit.
This means Michigan sellers who've owned for 20+ years are often paying taxes on a taxable value far below current market value. Their effective tax rate may look lower than it appears in the table above. When evaluating Florida's tax burden, compare to what you're actually paying in Michigan, not a theoretical market-rate calculation.
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Michigan home equity varies significantly by market. Metro Detroit suburbs have appreciated meaningfully, while Flint, Saginaw, and parts of the Upper Peninsula have seen more modest gains.
Michigan transplants at Sun City Center often gravitate toward:
Michigan buyers are a big part of our Sun City Center community. Let us help you find the right fit for your situation.
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