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The facts on Michigan’s Tax Climate
Michigan's Individual Income Tax System
Michigan's personal income tax system consists of a flat rate of 4.25%. That rate ranks 11th lowest among states levying an individual income tax. Michigan's state and local income tax collections per person were $688 in 2011 which ranked 18th lowest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Michigan's Corporate Income Tax System
Michigan's corporate income tax system consists of a flat rate of 6%. That rate ranks 15th lowest among states levying a corporate income tax. Michigan's state and local corporate income tax collections per person were $73 in 2011 which ranked 13th lowest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Michigan Sales and Excise Taxes
Michigan levies a 6% general sales or use tax on consumers, which is above the national median of 5.95%. Michigan's state and local governments collect $959 per person in general sales taxes and $376 per person in excise taxes, for a combined figure of $1335, which ranks 14th lowest nationally. Michigan's gasoline tax stands at 39.1¢ (6th highest nationally), while its cigarette tax stands at $2 (11th highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Michigan Property Tax Collections Average
Michigan's state and local governments collected approximately $1374 per person in property taxes, which ranks 21st highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 17th in Michigan
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, Michigan taxpayers worked until April 17th (21st latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Indiana, April 16th (ranked 24th latest nationally); Ohio, April 14th (ranked 23rd earliest nationally); and Wisconsin, April 22nd (ranked 13th latest nationally).
Michigan's State and Local Tax Burden In Line with National Average
Michigan's 2011 tax burden of 9.57% ranks 21st highest out of 50 states, and is below the national average of 9.8%. Michigan's taxpayers pay $3506 per capita in state and local taxes.
Michigan's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Michigan's 2014 Business Tax Climate Index Ranks 14
Michigan ranks 14th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Indiana, 10th, Ohio, 39th, and Wisconsin, 43rd.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)
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