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Taxation of Employee Benefits: Michigan

Taxation of Employee Benefits requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Rena Pirsos, XpertHR Legal Editor


  • Same-sex marriage is legal in Michigan. Based on the US Supreme Court ruling in Obergefell v. Hodges, the value of health insurance benefits provided to an employee's same-sex spouse is no longer subject to state income tax withholding. However, the value of such benefits provided to an employee's civil union partner or domestic partner remains taxable in Michigan. See Same-Sex Couple Health Insurance Benefits.