INGHAM COUNTY, Mich. — A new study by the Tax Foundation shows Michigan residents could see significant tax savings under a proposed federal tax plan, with Ingham County residents potentially saving around $2,700.
- Michiganders could save an average of $3,151 in federal taxes filed in 2026 under the "One Big Beautiful Bill" proposal.
- The plan includes no tax on tips, no tax on overtime, no tax on car loan interest, and a new deduction for seniors.
- The proposed deductions would be temporary, available from 2025 through 2028 for those meeting income requirements.
I spoke with local residents and financial experts about how these potential tax changes could impact Mid-Michigan families.
WATCH: Proposed tax cuts could put thousands back in Mid-Michigan residents' pockets
The Tax Foundation, a nonpartisan tax policy nonprofit, has analyzed the "One Big Beautiful Bill" proposal and found that Michigan residents could see substantial tax savings.
"That would be good because if you're part of a certain income, part of your social security is taxable," Joann Depeel said.
Depeel tells me an extra couple thousand dollars in her pocket would make a significant difference.
The study projects that Michiganders would save an average of $3,151 in federal taxes filed in 2026, with savings varying by county. In Ingham County, residents could see around $2,700 in savings, according to the study.
"It'll provide opportunity to save more because more of your income you're going to keep," Chris Buck said.
Buck, a financial advisor, says understanding what's in the bill is important not only for the present but also for retirement planning.
"I may be meeting with somebody next week that I need to plan for, and I need to know these changes now," Buck said.
The proposed plan includes several tax breaks: no tax on tips, no tax on overtime, no tax on car loan interest, and a new deduction for seniors — $6,000 for residents 65 and older, or up to $12,000 for eligible married couples.
"When you go into retirement and you become a senior citizen, your income is reduced," Buck said.
Depeel notes that tax cuts often come with tradeoffs.
"If people are happy not having certain services and getting a better tax break, that's fine, but there's always something you give up for something," Depeel said.
The deductions would be temporary and available from 2025 through 2028 for those meeting income requirements.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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