TRENTON, Mich. (WILX) – Governor Gretchen Whitmer is joining legislators and tipped workers at a local restaurant in Trenton to sign a budget bill that eliminates state taxes on tips, overtime pay, and Social Security income.
The bill is designed to help working families and seniors keep more of their hard-earned money and make it easier to ‘make it’ in Michigan.
By removing taxes on tips, the budget will save workers an average of $200 per year.
Eliminating taxes on overtime will provide an additional average savings of $900 annually.
For seniors, the elimination of taxes on Social Security income will benefit tens of thousands of Michiganders, with average savings of $500 per year.
This budget builds on the Whitmer-Gilchrist administration’s efforts to support working people and retirees.
It follows the rollback of the retirement tax, saving seniors an average of $1,000 per year, and the expansion of the Working Families Tax Credit, which delivers an average refund of $3,000 to eligible Michiganders.
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