Michigan Estate Tax and Inheritance Tax Guide

It is not legal advice. Verify current requirements with the county probate court, relevant agency, or qualified Michigan counsel before acting.

Most Michigan probate cases do not start with a state inheritance-tax filing. 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 old-date rule matters when an estate reopens because someone finds an older asset. Current deaths usually need income tax, property tax, title, and federal estate-tax review instead.

Michigan Inheritance Tax

Michigan Treasury describes inheritance tax as a tax on the right to receive property by inheritance. Its FAQ says the tax remains in effect only for people who inherited from a person who died on or before September 30, 1993.

If a family finds an after-discovered asset from an older estate, Treasury asks for a letter within 90 days of discovering the asset, plus asset details and date-of-death value information.

For a recent death, this older inheritance-tax rule usually does not control the probate plan.

Federal Estate Tax

The IRS estate tax is separate from Michigan probate. For 2026 deaths, the IRS estate tax page lists a filing threshold of $15,000,000. A filing can also matter for portability or other federal choices, even when the estate does not expect to pay tax.

High-value estates may need a CPA, enrolled agent, or estate tax attorney early. Federal estate tax filings have their own rules, forms, valuation issues, and deadlines.

Final Income Tax and Estate Income Tax

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

Examples include interest, dividends, rent, business income, or sale income during administration. Keep account statements and closing statements so the tax preparer can separate pre-death and post-death income.

Real Estate Transfer Tax

Michigan real property transfers can require transfer tax review. MCL 207.526 lists exemptions from the state real estate transfer tax, but a deed may still need county review, recording fees, and local documents.

Do not assume every estate deed is exempt. Ask the county register of deeds how to document the exemption, if one applies.

Records to Keep

Keep these records for tax review:

• Date-of-death values for accounts and property
• Real estate appraisals or market support
• Closing statements
• Estate bank statements
• Receipts for administration expenses
• Funeral and burial bills
• Beneficiary distributions
• IRS and Michigan Treasury correspondence

Tax work usually gets easier when the personal representative keeps estate money separate from personal money.

When to Get Help

Get tax help when the estate includes:

• High-value assets near a federal threshold
• Business ownership
• Rental or farm property
• Securities with large gains or losses
• Real estate sales during administration
• An after-discovered asset from a pre-October 1993 death
• Out-of-state property

For transfer planning, read Transfer Property After Death in Michigan. To separate tax costs from court costs, compare this page with the Michigan probate costs and fees guide.

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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 guide provides general tax information. Ask a tax professional about filing duties, valuation, deductions, and deadlines for a specific estate.