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Level 2
March 20, 2026
Question

Mortgage backed securities

  • March 20, 2026
  • 2 replies
  • 173 views

Good morning!

 

I have a question regarding interest earned on Mortgage backed Securities -

 

Is this exempt from Michigan state income tax or not?

 

Please advise.

 

Thanks,

 

 

    2 replies

    baldietax
    Level 12
    March 20, 2026

    generally Fannie and Freddie securities are state taxable.  bonds issued by other agencies like FHLB and Federal Farm Mortgage Corp are state exempt.  you'd need to check the MI tax code they should have a schedule like this I googled - this is from 2010

     

    https://www.michigan.gov/-/media/Project/Websites/taxes/MISC/2010/2010_Income_Tax_Fed_Oblig.pdf?rev=b04ce0d2b71f465b8a49b85a8cacc05a

    patelrpnAuthor
    Level 2
    March 22, 2026

    Yes i am all set and it’s a closed issue .

     

    Thank you for your reply!

    Ramesh