Michigan

The facts on Michigan’s Tax Climate

Michigan's Individual Income Tax System
Michigan's individual income tax system consists of a flat rate of 4.25%. That rate ranks 39th highest among states levying an individual income tax. Michigan's state and local tax collections per person were $866 in 2013, which ranked 33rd highest 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 32nd highest among states levying a corporate income tax. Michigan's state and local corporate income tax collections per person were $90 in 2013 which ranked 38th highest 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 does not levy additional local sales taxes. Michigan's state and local governments collect $855 per person in general sales taxes and $415 per person in excise taxes, for a combined figure of $1,270, which ranks 38th highest nationally. Michigan's gasoline tax stands at 30.54 cents per gallon, 18th highest nationally, while its cigarette tax stands at $2.00, 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 $1,320 per person in property taxes in 2013, which ranks 25th nationally.
State and local property tax collections per capita by state

Tax Freedom Day Arrives on April 22nd in Michigan

Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Michigan taxpayers have to work until April 22nd (32nd earliest nationally) to pay their total tax bill.

Michigan's State and Local Tax Burden Ranks 25th

Michigan's 2012 tax burden of 9.4% ranks 25th highest in the nation, and is below the national average of 9.9%. Michigan's taxpayers pay $3631 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 2016 Business Tax Climate Index Ranks 13th

Michigan ranks 13th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (11th), individual income taxes (15th), sales taxes (7th), unemployment insurance taxes (48th), and taxes on property (26th), including residential and commercial property.
State Business Tax Climate Index (full study)

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