Michigan 529 tax deduction in 2026
Michigan subtracts what you put in minus what you took out, account by account, before it applies the cap.
Michigan tax saved on this contribution
$255
4.3 % of what you put in comes back on your 2026 return.
| Subtracted from state income | $6,000 |
| Your state marginal rate | 4.25 % |
| Cap that applies this year | $10,000 |
| Back per $1,000 contributed | $43 |
Michigan: Deduction of net contributions to MESP or MAP accounts (contributions minus that year's withdrawals not subject to Michigan tax, computed per account), capped at $5,000 per single return or $10,000 per joint return; rollovers in from another state's 529 do not count. Read on 2026-10-19. No federal deduction exists for 529 contributions.
| Taxable income | Marginal rate | Tax saved |
|---|---|---|
| $50,000 | 4.25 % | $255 |
| $100,000 | 4.25 % | $255 |
| $200,000 | 4.25 % | $255 |
| $400,000 | 4.25 % | $255 |
Worked out by Radif Partners · How we calculate · Michigan rule read on October 19, 2026, brackets of tax year 2026 · not tax advice
A Michigan return can subtract up to $5,000 single or $10,000 joint for contributions to the Michigan Education Savings Program (MESP) or MAP, the state's second savings plan, but the figure that counts is net: contributions minus the same year's withdrawals that escape Michigan tax, worked out per account. Money rolled in from another state's 529 does not count at all. The rate is a flat 4.25 % for 2026, because the statutory trigger for a cut was not met, so a couple who reaches the joint cap saves $425. Only Michigan's own plans qualify. MESP's FAQ says K-12 tuition withdrawals bring back the deduction and are taxed on their earnings, while student loan repayments and apprenticeship costs are treated as qualified. A rollover to another state's 529 is generally not taxed, an ABLE rollover may be added back, and the Roth IRA rollover still waits for a Michigan ruling.
| Benefit for contributions | Deduction |
|---|---|
| Cap | $5,000 single, $10,000 joint per return |
| Another state’s plan counts | No, in-state plan only |
| State plans (official names, no recommendation) | Michigan Education Savings Program (MESP), MI 529 Advisor Plan (MAP), Michigan Education Trust (MET) |
| Account balance limit | $500,000 |
| K-12 withdrawals qualified for state tax | No |
| 529 to Roth IRA rollover qualified | Not stated by the state |
| Student loan payments qualified | Yes |
| Add-back on a rollover to another state’s plan | No |
Why Michigan nets withdrawals against deposits
The MESP program description defines the deduction as net contributions: what you put into an account during the year, minus what you took out of that same account in the year without Michigan tax. The netting is done per account, not per family. A single father at $58,000 who deposits $7,000 into his daughter's account and pays a $3,000 freshman bill from it in the fall deducts $4,000, saving $170. Had the bill been paid from savings outside the 529, he would have deducted the whole deposit and saved $213.
This rule matters most in the college years, when deposits and tuition payments overlap. A deposit made in December and a withdrawal made the following January fall in different tax years and are not netted against each other.
Michigan deduction on a net contribution
Michigan tax saved on this contribution
$170
| Subtracted from state income | $4,000 |
| Your state marginal rate | 4.25 % |
| Cap that applies this year | $5,000 |
| Back per $1,000 contributed | $43 |
The cap is per return
A joint couple at $105,000 who put $7,000 into each of two children's accounts contributes $14,000 but deducts $10,000, a saving of $425. A second child does not open a second cap. With a flat rate, the saving per dollar is 4.25 % for every household; nothing depends on income except whether the contribution is large enough to hit the ceiling. Some cities, Detroit among them, levy their own income tax, and the program description read here does not say whether a city return gives any 529 deduction.
Three programs, one balance limit
Michigan runs two savings plans, MESP and MAP, plus the Michigan Education Trust (MET), a prepaid tuition program. The $500,000 balance limit counts accounts across all three for one beneficiary. The deduction cap stated in the program description covers MESP and MAP; whether MET contracts carry a separate deduction was not checked, so this page does not claim one. Rollovers from another state's plan into MESP are accepted but do not count as deductible contributions.
K-12 and the 2025 federal changes in Michigan
Federal law raised the K-12 limit to $20,000 a year from 2026 and added credential programs. MESP Supplement No. 5 of July 1, 2026 describes these changes but leaves the state result to each filing state. For Michigan, the program FAQ says K-12 tuition withdrawals are subject to recapture of the deduction and to state tax on the earnings. A 2025 bill in the legislature would change that for K-12 tuition; its enactment was not confirmed, so the FAQ's rule is the one shown here. Michigan conformity is stated for apprenticeship costs and student loan repayments.
Private school tuition from a Michigan account
Tax-free from the 529 this year (federal)
$12,000
| Federal cap per child, 2026 | $20,000 |
| Above the cap | $0 |
| Federal tax and 10 % on that part | $0 |
| Michigan treatment | Not qualified: add-back or tax |
Leaving the plan
MESP states that Michigan generally does not tax a qualified rollover to another 529 if it is free of federal tax. A rollover to an ABLE account may be added back to the extent previously deducted. On a 529 to Roth IRA rollover, MESP writes that it is unclear, pending a determination by Michigan, whether it counts as a non-qualified rollover subject to recapture. The Roth rollover page covers the federal limits.