For people who are asking about the ignored IE10+ support in other answers, checkout this piece of CSS:
img.grayscale:hover {
filter: url("data:image/svg+xml;utf8,<svg xmlns=\'http://www.w3.org/2000/svg\'><filter id=\'grayscale\'><feColorMatrix type=\'matrix\' values=\'1 0 0 0 0, 0 1 0 0 0, 0 0 1 0 0, 0 0 0 1 0\'/></filter></svg>#grayscale");
}
svg {
background:url(http://4.bp.blogspot.com/-IzPWLqY4gJ0/T01CPzNb1KI/AAAAAAAACgA/_8uyj68QhFE/s400/a2cf7051-5952-4b39-aca3-4481976cb242.jpg);
}
svg image:hover {
opacity: 0;
}
Applied on this markup:
<!DOCTYPE HTML>
<html>
<head>
<title>Grayscaling in Internet Explorer 10+</title>
</head>
<body>
<p>IE10 with inline SVG</p>
<svg xmlns="http://www.w3.org/2000/svg" id="svgroot" viewBox="0 0 400 377" width="400" height="377">
<defs>
<filter id="filtersPicture">
<feComposite result="inputTo_38" in="SourceGraphic" in2="SourceGraphic" operator="arithmetic" k1="0" k2="1" k3="0" k4="0" />
<feColorMatrix id="filter_38" type="saturate" values="0" data-filterid="38" />
</filter>
</defs>
<image filter="url("#filtersPicture")" x="0" y="0" width="400" height="377" xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="http://4.bp.blogspot.com/-IzPWLqY4gJ0/T01CPzNb1KI/AAAAAAAACgA/_8uyj68QhFE/s1600/a2cf7051-5952-4b39-aca3-4481976cb242.jpg" />
</svg>
</body>
</html>
For more demos, checkout IE testdrive's CSS3 Graphics section and this old IE blog http://blogs.msdn.com/b/ie/archive/2011/10/14/svg-filter-effects-in-ie10.aspx