July 29th 2025
By Ari Parker
Thinking about retiring in Michigan? Learn about cost of living, taxes, healthcare, and the best places to live for a comfortable retirement.
Thanks to its natural beauty, affordable cost of living, and tax-friendly policies for seniors, Michigan regularly ranks as a top state for retirees. What’s also appealing is the range of places to live, from small towns to larger cities.
Michigan is home to more than 11,000 lakes, making it the ideal landscape for those who enjoy activities like fishing, boating, and hiking.
Although housing costs are slightly below the national average, property taxes are higher.
Michigan has several high-quality healthcare facilities, but it can be more difficult to access services in the more rural areas of the state.
Michigan has four distinct seasons. Winters can be cold and snowy, which can be unappealing if you’re not used to the cold. If you enjoy winter sports, though, then Michigan has plenty to offer you, including skiing, snowshoeing, ice fishing, and ice skating.
If you’re a person who enjoys the water, then Michigan might be calling your name. The state is bordered by 4 of the 5 Great Lakes, and there are over 11,000 inland lakes. This means that Michigan has more freshwater coastline than any other state. Whether you enjoy fishing, boating, kayaking, or just relaxing by the water, there are plenty of beautiful beaches to enjoy.
Art is popular throughout the state, with the Detroit Institute of Arts and the Frederik Meijer Gardens & Sculpture Park being well-known places to visit. There is also a diverse food scene: Coney dogs, Detroit-style pizza, and hand pies are Michigan staples, but you can also sample Middle Eastern, Polish, Dutch, and Mexican food.
We’d also be remiss not to mention that Michigan is the home of both Motown and the Motor City. Music lovers might enjoy visiting the Motown museum or one of the many Motown live music festivals. And, those who appreciate cars might want to visit the Henry Ford Museum or the Woodward Dream Cruise, a parade of more than 40,000 classic and antique cars.
Now that you have an idea of what retiring in Michigan looks like, let’s explore some more specific pros and cons.
Michigan has a more affordable cost of living
Michigan offers tax-friendly policies for seniors, including no taxes on Social Security benefits.
If you enjoy the outdoors, Michigan’s landscape is perfect for activities, including hiking, swimming, boating, and skiing.
Winters can be cold and snowy, which can be unpleasant for those who aren’t used to this type of weather.
Property taxes can be high.
Public transportation can be an issue, especially in more rural areas.
Michigan offers several tax-friendly policies for seniors.
No Social Security taxes: There are no taxes on Social Security in Michigan.
Retirement income deductions: Deductions are available for all types of retirement income.
Homestead Property Tax Credit: Michigan’s Homestead Property Tax Credit allows a credit for individuals who own or rent a property in Michigan and have an income below a certain amount.
No state or inheritance taxes: There are no state or inheritance taxes in Michigan.
Property tax rate: The average effective property tax rate is 1.35%.
Michigan’s cost of living is about the same as the national average. Housing is 3% lower than the national average. This means that the average cost of a home is about $257,000, while the average rent is $1,385. Cost of living tends to be higher in urban areas than rural areas.
While the cost of living is about the same as the national average, prices can vary across the state. A home in the upscale Bloomfield Hills averages about $642,000, while a home in a budget-friendly area like Saginaw averages for $124,000.
Like the cost of living, the cost of food is about the same as the national average, while utilities are slightly lower. Healthcare and transportation are slightly above the national average.
Sales tax in Michigan is 6%. Electricity, natural or artificial gas, and home heating fuels for heating homes are taxed at a rate of 4%. Prescription medications, groceries, and medical devices are not taxed.
Minnesota’s access to healthcare services is better than Michigan's, which can be difficult in the more rural areas of the state. The cost of living in Minnesota is also slightly below the national average, whereas Michigan is about the national average. However, Michigan does offer more tax–friendly policies for seniors.
Although the weather can be similar between Michigan and Minnesota, the weather in Michigan can be milder, especially for the areas along the Great Lakes.
Deciding what state to retire in is a complex and personal decision. Keep in mind your personal preferences and needs when deciding which state will offer you the best lifestyle.
Although Michigan’s cost of living is about the same as the national average, there are some more high-end areas and some more affordable areas. Cities that might offer you a more luxurious retirement include:
Ann Arbor: Home to the University of Michigan, with a walkable downtown, theaters, and bookstores.
Birmingham: A suburb of Detroit that offers access to the amenities of the city with luxury apartments and beautiful parks.
Traverse City: Located along the Lake Michigan shoreline with wineries, shopping, and golfing.
More affordable cities that offer gorgeous scenery and urban amenities include:
Midland: With beautiful parks, a complex trail system, and a low crime rate, Midland is a walkable community with a small-town feel.
Kalamazoo: A university town with museums, trails, and regular events. There’s also a train station, which makes it easy to visit Detroit or Chicago.
Bay City: Located on Saginaw Bay, Bay City makes it easy to enjoy outdoor activities like nature walks, fishing, and biking.
Some seniors enjoy retirement communities because they offer a stress-free lifestyle and easy access to activities and amenities. Some popular options include:
All Seasons Ann Arbor: There are plenty of activities offered, including yoga, art classes, concerts, and happy hours. The community’s six dining venues offer chef-prepared meals like petite filet mignon and grilled salmon.
Fox Run: With six dining venues, a pool, a library, a performing arts center, and a fitness center, Fox Run has several amenities to enjoy. Assisted living and memory care are available.
The Village of East Harbor: The Village of East Harbor has three dining venues, non-denominational chapel services, and a health and fitness center. Weekly trips to grocery stores and banks are offered, along with regular group trips, such as to downtown Detroit. Skilled nursing care, assisted living, and memory care are available.
Michigan is ranked as the 21st state in America’s Health Rankings’ Senior Report. Healthcare services are generally easy to access in Michigan, especially in the more urban areas of the state.
Arthritis tends to be more common in Michigan seniors than the national average. Because arthritis can get worse in the colder weather, if you have issues with arthritis, you might be more comfortable in a state that has warmer weather year-round.
Michigan offers high-quality healthcare facilities like the University of Michigan Hospitals, Beaumont Hospital, and Henry Ford Hospital. Generally, it’s easy to access specialized healthcare services in urban areas of the state, but this can be more difficult in the more rural areas of the state.
There are about 2.66 million Medicare beneficiaries in Michigan, which makes up about 26% of the state’s population. Of these beneficiaries, about 62% have switched to a Michigan Medicare Advantage plan while 34% remain on Original Medicare.
If you want to learn more about Medicare in Michigan, you can speak with a Chapter Medicare Advisor. Call us at (855) 900-2427 or schedule a free consultation.
If you enjoy the outdoors and experiencing all four seasons, then Michigan can be an appealing spot to retire. The affordable cost of living and tax-friendly policies can also make it more appealing.
