State and Local Sales Tax Rates, Midyear 2023
Compare the latest 2023 sales tax rates as of July 1st. Sales tax rate differentials can induce consumers to shop across borders or buy products online.
8 min read
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 6.0 percent corporate income tax rate. Michigan also has a 6.00 percent state sales tax rate. Michigan has a 1.24 percent effective property tax rate on owner-occupied housing value.
Michigan does not have an estate tax or inheritance tax. Michigan has a 48 cents per gallon gas tax rate and a $2.00 cigarette excise tax rate. Michigan collects $4,981 in state and local tax collections per capita. Michigan has $8,018 in state and local debt per capita and has a 74 percent funded ratio of public pension plans. Overall, Michigan’s tax system ranks 11th on our 2024 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 2024: How Does Your State Compare?
Tax Data by State
Get facts about taxes in your state and around the U.S.
State Tax Data
Individual Taxes
Business Taxes
Sales Taxes
All Related Articles
State Tax Changes Taking Effect July 1, 2023
At least 32 notable tax policy changes recently took effect across 18 states, including alterations to income taxes, payroll taxes, sales and use taxes, property taxes, and excise taxes. See if your state tax code changed.
15 min read
Beer Taxes by State, 2023
Taxes are the single most expensive ingredient in beer, costing more than the labor and raw materials combined.
3 min read
Distilled Spirits Taxes by State, 2023
Of all alcoholic beverages subject to taxation, stiff drinks—and all distilled spirits—face the stiffest tax rates. Like many excise taxes, the treatment of distilled spirits varies widely across the states.
4 min read
Ranking Property Taxes on the 2023 State Business Tax Climate Index
States are in a better position to attract business investment when they maintain competitive real property tax rates and avoid harmful taxes on tangible personal property, intangible property, wealth, and asset transfers.
3 min read
Compare Tobacco Tax Data in Your State
In the United States, tobacco is taxed at both the federal and state and sometimes even local levels. These layers of taxes often result in very high levels of taxation—the highest of any consumer item. The retail price of cigarettes, for instance, is more than 40 percent taxes on average. In some states, like Minnesota and New York, more than 50 percent of the price paid by consumers comes from taxes.
2 min read
Ranking Sales Taxes on the 2023 State Business Tax Climate Index
An ideal sales tax applies to a broad base of final consumer goods and services, with few exemptions, and is levied at a low rate.
5 min read
Ranking Individual Income Taxes on the 2023 State Business Tax Climate Index
Individual income tax rates can influence location decision-making, especially in an era of enhanced mobility, where it is easier for individuals to move without jeopardizing their current job, or without limiting the scope of their search for a new one.
5 min read
Is Michigan’s Tax Cut Temporary or Permanent?
Michiganders will pay a lower individual income tax rate next year thanks to high general fund revenues, but these savings may be short-lived following an opinion released by the state’s attorney general.
7 min read