Twenty-nine states, including Michigan, maintain personal income tax exemptions, even though the 2017 Tax Cuts and Jobs Act suspended such exemptions at the federal level, according to a Tax Foundation analysis.

In the wake of the 2017 federal reforms, six states – Idaho, Utah, Colorado, New Mexico, North Dakota and Missouri – eliminated their personal exemptions for income taxes, the Tax Foundation study found. Such conformity efforts simplify tax-preparation requirements and reduce the chances of ambiguities and complexities.

Michigan’s current personal exemptions are state-defined deduction or credit. 

Personal tax exemptions are those amounts the taxpayer can deduct from their income on a return – either for themselves or their dependents. The federal tax reforms ended them through 2025, opting instead to nearly double the standard deduction, according to the analysis.

Nine states don’t levy taxes on income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

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Personal Income Tax Exemptions by State

StatePersonal Exemptions Allowed in State Income Tax?Personal Exemption Status
Alabama YesState-Defined Deduction or Credit
AlaskaNoNo Personal Income Tax
ArizonaYesState-Defined Deduction or Credit
ArkansasYesState-Defined Deduction or Credit
CaliforniaYesLinked to Federal Exemptions Allowed
ColoradoNoEliminated After TCJA Signed
ConnecticutYesState-Defined Deduction or Credit
DelawareYesLinked to Federal Exemptions Allowed
FloridaNoNo Personal Income Tax
GeorgiaYesState-Defined Deduction or Credit
HawaiiYesLinked to Federal Exemptions Allowed
IdahoNoEliminated After TCJA Signed
IllinoisYesLinked to Federal Exemptions Allowed
IndianaYesLinked to Federal Exemptions Allowed
IowaYesState-Defined Deduction or Credit
KansasYesLinked to Federal Exemptions Allowed
KentuckyNoNo Personal Exemptions Prior to TCJA
LouisianaYesState-Defined Deduction or Credit
MaineYesState-Defined Deduction or Credit
MarylandYesLinked to Federal Exemptions Allowed
MassachusettsYesState-Defined Deduction or Credit
MichiganYesState-Defined Deduction or Credit
MinnesotaYesLinked to Federal Exemptions Allowed
MississippiYesState-Defined Deduction or Credit
MissouriNoEliminated After TCJA Signed
MontanaYesState-Defined Deduction or Credit
NebraskaYesLinked to Federal Exemptions Allowed
NevadaNoNo Personal Income Tax
New HampshireNoNo Personal Income Tax
New JerseyYesState-Defined Deduction or Credit
New MexicoNoEliminated After TCJA Signed
New YorkYesLinked to Federal Exemptions Allowed
North CarolinaNoNo Personal Exemptions Prior to TCJA
North DakotaNoEliminated After TCJA Signed
OhioYesState-Defined Deduction or Credit
OklahomaYesLinked to Federal Exemptions Allowed
OregonYesLinked to Federal Exemptions Allowed
PennsylvaniaNoNo Personal Exemptions Prior to TCJA
Rhode IslandYesState-Defined Deduction or Credit
South CarolinaYesState-Defined Deduction or Credit
South DakotaNoNo Personal Income Tax
TennesseeNoNo Personal Income Tax
TexasNoNo Personal Income Tax
UtahNoEliminated After TCJA Signed
VermontYesState-Defined Deduction or Credit
VirginiaYesLinked to Federal Exemptions Allowed
WashingtonNoNo Personal Income Tax
West VirginiaYesLinked to Federal Exemptions Allowed
WisconsinYesLinked to Federal Exemptions Allowed
WyomingNoNo Personal Income Tax

Source: Tax Foundation