LANSING, Mich. (Feb. 9, 2026) — With tax season in full swing, Sen. Sarah Anthony (D-Lansing) is reflecting on the passage of the largest tax break for working families in Michigan history. To help support Michiganders facing financial challenges, Sen. Anthony and her colleagues created the Working Families Tax Credit — quintupling Michigan’s match of the federal Earned Income Tax Credit (EITC) from 6% to 30%.
The Working Families Tax Credit was part of the Lowering MI Costs Plan championed by Senate Democrats in the last legislative session. Designed to tackle rising costs that Michiganders are facing, the plan cut taxes by $1 billion for those who need it most. It also overhauled the unfair and unpopular retirement tax, helping Michigan seniors save money.
“Michiganders shouldn’t be forced to choose between putting gas in the tank or food on the table, or paying rent instead of covering the costs of child care,” said Sen. Anthony. “My colleagues and I came together in 2023 to deliver the game-changing expansion of the EITC, ensuring fewer people have to face these impossible decisions and can instead focus more on what matters most — spending time with their families.”
Last year, the expanded credit helped approximately 665,000 Michiganders who have the hardest time affording the basics save an average of $890 more per year, resulting in $3,856 in total savings with the federal and state EITCs combined. The benefits of the EITC extend beyond household budgets, helping contribute over $550 million to local economies and small businesses, as families use the additional breathing room to afford necessities like child care, car repairs, new appliances, groceries, and more.
Nearly one in five eligible households miss out on claiming the EITC. To see if you qualify, visit Michigan.gov/taxes.
Other Ways We’re Lowering Costs for Working Families
The Lowering MI Costs Plan was among the first steps Sen. Anthony and her Senate colleagues took to cut taxes and make everyday expenses more affordable for working families. Other actions include:
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Eliminating taxes on tips, overtime, and social security;
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Slashing red tape and ensuring spouses of disabled veterans can maintain property tax exemptions;
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Continuing to fund the free school meal program, saving families an estimated $1,000 per child every year;
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Making major investments to lower child care costs and expand affordable preschool for four-year-olds, helping families save $10,000 annually; and
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Increasing financial support for those pursuing skilled trades, lowering the cost of a higher degree, and making community college accessible for all students.