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Taxes In Michigan

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?

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Tax Data by State

Get facts about taxes in your state and around the U.S.

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State Tax Data

Individual Taxes

Top Individual Income Tax Rate
4.25%See Full Study
State Local Individual Income Tax Collections per Capita
$1082Rank: 29
State and Local Tax Burden
8.6%Rank: 5See Full Study

Business Taxes

Top Corporate Income Tax Rate
6.00%See Full Study
State Business Tax Climate Index Ranking
12See Full Study

Sales Taxes

State Sales Tax Rate
6.00%Rank: 17See Full Study
Combined State and Average Local Sales Tax Rate
6.00%Rank: 38See Full Study
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

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
1.38%Rank: 14
State and Local Property Tax Collections Per Capita
$1594Rank: 27

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