Moving from Michigan to St. Augustine

Michigan's retirement income tax rules changed significantly in 2023. Here is what Michigan retirees currently pay — and what moves to $0 when you establish Florida residency.

Michigan retirees considering St. Augustine often have a more complicated state income tax picture than other Midwest buyers — because Michigan's pension tax rules depend on your birth year and changed under legislation passed in 2023. The property tax comparison is consistent: Michigan's effective rates run 1.2%–1.8% in most suburban metro areas, and St. Johns County at 13.47 mills competes favorably at most home price points.

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Michigan Retirement Income Tax — The Birth Year Rules

Michigan Pension Tax by Birth Year (Post-2023 Legislation)Michigan's Lowering MI Costs Plan (2023) phases in expanded pension tax exemptions over several years. As of 2025: taxpayers born before 1946 — full exemption on pension and retirement income (Social Security already exempt). Taxpayers born 1946–1952 — existing rules in transition; partial exemptions apply during phase-in. Taxpayers born after 1952 — the 2023 legislation phases in the "private sector phase-out" and expands exemptions; the full exemption schedule reaches completion by 2026 for most taxpayers. Michigan's flat income tax rate is 4.05%. Verify your specific birth-year exemption status at michigan.gov/taxes before comparing to Florida.

The Rules Are Still Changing — Verify Before You PlanMichigan's pension tax legislation has multiple phase-in years and birth-year brackets. The exemption amounts for 2025 differ from 2024 and will differ again in 2026. Do not plan your move around Michigan income tax savings without confirming your current-year exemption with a Michigan CPA or the Michigan Department of Treasury. The directional statement — Florida has no income tax — remains true and constant.

Income Source	Michigan Treatment (2025, approx.)	Florida Treatment
Social Security	Fully exempt	Fully exempt
Public pension (state/local/federal)	Fully exempt if born before 1946; partial/phase-in for born 1946+	Fully exempt
Private pension / IRA distributions	Birth-year dependent — significant exemptions expanding through 2026	Fully exempt
Investment income	Taxable at 4.05% (flat rate)	Exempt

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Property Tax: Michigan vs St. Johns County

Michigan property taxes vary by township and school district. Metro Detroit (Oakland, Macomb, Wayne counties), Grand Rapids (Kent County), and Ann Arbor (Washtenaw County) commonly run 1.5%–2.2% effective rates on comparable homes. On a $375,000 Michigan home at 1.7%, annual tax is approximately $6,375.

Home Value	Michigan Property Tax (est. 1.7%)	St. Johns County Year-1 Tax	Annual Savings
$350,000	$5,950	$4,041	$1,909
$425,000	$7,225	$5,051	$2,174
$500,000	$8,500	$6,062	$2,438

The Save Our Homes cap then protects your Florida bill from significant future increases while Michigan taxes continue rising with each township and school district budget cycle. Over 10 years, the cumulative property tax savings on a $425,000 home are approximately $15,000–$20,000 compared to the Michigan equivalent.

The Weather Factor and What It Costs

Michigan-to-Florida movers consistently cite the winters as the primary lifestyle driver. What is worth knowing financially: Michigan winters create real annual costs that disappear in Florida. Snow removal (professional service: $500–$1,500/winter), winter car maintenance (tires, corrosion), and utility cost differences (natural gas heating in Michigan vs year-round AC in Florida — often a wash but weather-dependent) are all real factors in the total cost-of-living comparison, even though they do not appear in a property tax table.

Communities That Fit Michigan Buyers

Michigan buyers from the metro Detroit area tend to appreciate quality construction and are often accustomed to HOA-governed communities in suburban Michigan. The community social model at WaterSong or Parkland Preserve — structured lifestyle programming, clubs, and organized events — maps well to what Michigan active adult communities offer. WaterSong at RiverTown (water access, larger community) and Reverie at Silverleaf (active construction, no CDD) are the most commonly considered options in this market for Michigan buyers.

Michigan's pension tax rules are in active transition through 2026. An agent familiar with out-of-state buyers can help you understand the full financial picture and time your move to maximize the benefit.

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Michigan income tax rate 4.05% flat (2025). Birth-year pension exemption rules per Michigan Public Act 4 of 2023 — verify current-year status at michigan.gov/taxes or with a Michigan CPA. Property tax rates approximate — vary by township and school district. St. Johns County millage 13.47 mills. This page is for research purposes only.