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February 19, 2021
Question

Are Michigan National Guard members expect from State tax at their civilian job? I was under the impression they were.

  • February 19, 2021
  • 1 reply
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State tax is withheld from my Drill pay, why wouldn't I be getting the state taxes back from my civilian job?

1 reply

AmyC
February 19, 2021

I am assuming your HOR is not MI. This means only income earned in MI outside of the military is taxable to MI. Your civilian job would require you to pay tax.

 

MI law for Military Personnel:

  • Residents entering military service remain Michigan residents for income tax purposes, regardless of duty station, until a change of legal residence has been made.
  • Nonresidents stationed in Michigan must file if they have earned income from Michigan sources other than military pay.
  • Military spouses. The spouse of a servicemember may elect the same legal residence state as the servicemember.
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February 19, 2021

My HOR is in Michigan does that change anything?

February 21, 2021

No, your civilian job would still be taxable income in MI. 

 

Also, only the following National Guard pay is considered military pay and therefore exempt from Michigan tax:

  • Weeknight and regular weekend drills
  • Summer camp
  • Pay received for riot duty, only if nationalized by the president of the U.S.
  • Public Health Officers pay, only for those assigned to the Coast Guard or who are nonresidents of Michigan
  • Retirement/Pension benefits 

(MI Department of Treasury)

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