The differences in purchasing power can be large and they have significant implications for the relative impact of economic and tax policies across the United States.
Michigan Tax Rates, Collections, and Burdens
How does Michigan’s tax code compare? Michigan has a flat 4.25 percent individual income tax rate. There are also jurisdictions that collect local income taxes. Michigan has a 6.00 percent corporate income tax rate. Michigan has a 6.00 percent state sales tax rate and does not levy any local sales taxes. Michigan’s tax system ranks 12th overall on our 2023 State Business Tax Climate Index.
Each state’s tax code is a multifaceted system with many moving parts, and Michigan is no exception. The first step towards understanding Michigan’s tax code is knowing the basics. How does Michigan collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?
State Tax Data
State and Local General Sales Tax Collections per Capita$916Rank: 40
State Gasoline Tax Rate (cents per gallon)45.17¢Rank: 10
State Cigarette Tax Rate (dollars per 20-pack)$2.00Rank: 18
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