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Retirement options for gig workers in Michigan (no state plan)
Your W-2 plan covers your paycheck. Gigaverse covers your hustle.
Status as of Oct 28, 2026.
No state-run auto-IRA
Michigan does not operate a state auto-IRA. Nothing in state law withholds retirement savings from a 1099 payment. A W-2 employer plan, or a city payroll program where one exists, covers that job's wages. Gigaverse is the layer for the 1099 income beside it, not a replacement for the plan the paycheck already has.
The 50-state status table is the state auto-IRA hub and the mandate tracker.
What the IRS counted in Michigan, tax year 2023
IRS Statistics of Income Historic Table 2 counts returns, not people. In tax year 2023, Michigan had 805,900 returns with Schedule C income, 16.5% of 4,872,330 returns in the state. 578,920 returns paid self-employment tax. 22,040 of those claimed the self-employed retirement-plan deduction, a rate of 3.8%. That deduction is the SEP, SIMPLE, or qualified-plan line. It does not measure Roth IRA contributions.
Michigan self-employment tax
Federal self-employment tax is 15.3% of 92.35% of net profit: 12.4% Social Security, up to the $184,500 wage base in 2026, and 2.9% Medicare with no cap. Half of that tax is deductible. Michigan income tax is separate and is in the next section. A state auto-IRA, where one exists, does not replace this federal tax.
Self-employment tax calculator · 1099 estimated tax calculator
Michigan income tax on 1099 profit
Michigan's individual income tax rate is 4.25% for 2026. The Department of Treasury said on April 15, 2026 that the conditions for an automatic rate cut were not met. Federal income tax and self-employment tax still apply. Some Michigan cities also tax income. Detroit's local guide covers that city layer.
Michigan Treasury, 2026 income tax rate
Federal quarterly estimates are separate from the state. The 1099 quarterly tax calculator uses the federal dates and self-employment tax. State tax guides for Michigan cities are linked below and from Michigan local taxes.
Senate Bill 807 passed the Senate. It is not law.
Michigan has no operating auto-IRA. The Michigan Legislature bill page for Senate Bill 807 shows a Senate roll call on June 17, 2026: yeas 20, nays 18. The House received the bill the same day and referred it to the Committee on Economic Competitiveness. That referral is the last House action on the official history.
The Senate-passed text would create the Michigan secure retirement savings program as an automatic-enrollment payroll-deduction IRA for employees. It also tells the board to evaluate and, if feasible, allow voluntary enrollment by someone who is not an employee, including a self-employed individual. Detroit gig workers are not enrolled by that bill today. A W-2 job's plan still covers only that paycheck.
What a 1099 worker can use in 2026
These limits are federal. They do not change because Michigan has no state plan. Catch-up contributions are not part of the $72,000 annual-additions cap.
| Account | 2026 limit | Who it fits |
|---|---|---|
| IRA (Roth or traditional) | $7,500, or $8,600 at age 50 or older. The limit is shared across every IRA. | Earned income, including 1099 profit, within the Roth income limits if the account is a Roth. |
| SEP IRA | Generally up to 25% of compensation, and not more than $72,000 of annual additions. | Employer contribution from the business. A sole proprietor's percentage is computed after self-employment tax adjustments. |
| Solo 401(k) | Elective deferral $24,500. Catch-up $8,000 at 50 or older, or $11,250 at ages 60 through 63. Employer contributions share the $72,000 cap with deferrals, before catch-up. | A self-employed worker with no full-time W-2 employees in the plan, who wants both a deferral and an employer contribution. |
Sources: IRS IR-2025-111, Notice 2025-67, IRS 401(k) contribution limits.
Read the Solo 401(k) for self-employed workers page, then run a number in the SEP-IRA contribution calculator. Gigaverse account opening for the Solo 401(k), the SEP and the PRActicle Roth IRA is waitlist only.
Where Gigaverse fits
Gigaverse is not a state program and is not a registered investment adviser. It sits next to a W-2 plan or a state program when one exists. Plans are Free, Pro ($4.99/mo) and Wealth Builder ($9.99/mo). The Solo 401(k), SEP and PRActicle Roth IRA are waitlist only. Gigaverse's published figure is "$5K+" labeled "Avg. tax savings per year, per worker."
City guides and job guides
These are existing local tax pages, not copies of this retirement guide.
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Questions
Does Michigan run an auto-IRA for gig workers?
No. Michigan has no state-run auto-IRA in operation. A W-2 retirement plan, where one exists, covers that paycheck. It does not cover 1099 income. Status as of Oct 28, 2026.
Does Michigan tax 1099 income?
Michigan's individual income tax rate is 4.25% for 2026. The Department of Treasury said on April 15, 2026 that the conditions for an automatic rate cut were not met. Federal income tax and self-employment tax still apply. Some Michigan cities also tax income. Detroit's local guide covers that city layer.
How much can a 1099 worker contribute in 2026?
For 2026 the IRA limit is $7,500, or $8,600 at age 50 or older. A Solo 401(k) elective deferral is $24,500, plus a catch-up of $8,000 at 50 or older, or $11,250 instead at ages 60 through 63. Employer contributions plus deferrals are limited to $72,000 of annual additions, not counting catch-up. A SEP contribution is generally up to 25% of compensation, inside that same annual-additions cap. These figures are from IRS news release IR-2025-111, Notice 2025-67, and the IRS 401(k) contribution-limits page.
Did Michigan pass a state retirement plan?
The Senate passed Senate Bill 807 on June 17, 2026, yeas 20, nays 18. The same day the House received it and referred it to the Committee on Economic Competitiveness. The Michigan Legislature's bill page is the source. The bill is not law, and Michigan has no operating auto-IRA.
Would Senate Bill 807 cover a self-employed worker?
The Senate-passed text creates an automatic-enrollment payroll-deduction IRA for employees of covered employers. It also tells the board to evaluate and, if feasible, set up voluntary enrollment for a person who is not an employee under the program, including a self-employed individual. That voluntary path is not in effect, because the bill is not law.
Sources
Status as of Oct 28, 2026. Verified 2026-10-28.
Educational information only, not tax or investment advice. Gigaverse AI, Inc. is not a bank and is not a registered investment adviser. We are not affiliated with Michigan, DoorDash, or any state or city retirement program. Contribution limits are set by the IRS and can change.