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Michigan Education Savings Program

How the Michigan Education Savings Program's state tax deduction works, what it saves, the K-12 recapture rule, and a calculator.

Updated November 4, 2026. Free, no sign-up; everything runs in your browser and nothing you type is stored.

MESP Michigan deduction calculator

Michigan tax saved (4.25%)
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–Michigan deduction

Michigan education savings program tax deduction

The Michigan Education Savings Program (MESP) is Michigan's direct-sold 529 plan. Individual taxpayers can deduct up to $5,000 of MESP contributions a year from Michigan adjusted gross income, and joint filers up to $10,000. At Michigan's 4.25% flat rate that's worth up to $212.50 ($425 joint). Earnings are free of federal and Michigan tax when used for qualified education costs.

Watch out for K-12 withdrawals

Federal law lets 529 money pay K-12 tuition, but for Michigan taxpayers those withdrawals are subject to recapture of the Michigan deduction and state tax on the earnings (MESP). Plan around college costs if you want to keep the state benefit. Project growth with the 529 calculator.

Common questions

How much can I deduct for MESP?

Up to $5,000 a year, or $10,000 married filing jointly.

Are MESP K-12 withdrawals tax-free in Michigan?

No, Michigan recaptures the deduction and taxes the earnings.

Sources

More savings and interest calculators: Iowa529 (ISave 529) · NY529

Related

General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.