Taxes in Michigan

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 rank?  Below, we have highlighted a number of tax rates, ranks, and measures detailing Michigan’s income tax, business tax, sales tax, and property tax systems. Click the tabs below to explore!

Top Individual Income Tax Rate

4.25%

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State and Local Individual Income Tax Collections per Capita

$1005

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State and Local Tax Burden

9.4%

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Top Corporate Income Tax Rate

6.00%

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State Business Tax Climate Index Ranking

12

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State Sales Tax Rate

6.00%

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Combined State and Average Local Sales Tax Rate

6.00%

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State and Local General Sales Tax Collections per Capita

$986

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State Gasoline Tax Rate (cents per gallon)

41.98¢

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State Cigarette Tax Rate (dollars per 20-pack)

$2.00

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Property Taxes Paid as a Percentage of Owner-Occupied Housing Value

1.44%

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State and Local Property Tax Collections Per Capita

$1416

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Featured Articles

State Corporate Income Tax Rates and Brackets for 2022

January 18, 2022

Net Operating Loss Provisions: State Treatment and the Economic Benefits

January 13, 2022

2022 State Business Tax Climate Index

December 16, 2021

Where Do People Pay the Most in Property Taxes?

September 1, 2021

Reviewing Benefits of the State and Local Tax Deduction by County in 2018

August 25, 2021

Sales Tax Rates in Major Cities, Midyear 2021

August 18, 2021


Related Articles

State Corporate Income Tax Rates and Brackets for 2022

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Net Operating Loss Provisions: State Treatment and the Economic Benefits

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2022 State Business Tax Climate Index

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Cigarette Taxes and Cigarette Smuggling by State, 2019

December 2, 2021

Where Do People Pay the Most in Property Taxes?

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Reviewing Benefits of the State and Local Tax Deduction by County in 2018

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Sales Tax Rates in Major Cities, Midyear 2021

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Compare Tobacco Tax Data in Your State

July 22, 2021

Michigan Looks to Lower Corporate Income Tax Rate to Improve State Competitiveness

July 1, 2021

What Are the Chances Your State Withholds Much of Your Lottery Winnings?

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Biden Administration Changes to GILTI and FDII Will Yield Automatic State Tax Increases

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Location Matters 2021: The State Tax Costs of Doing Business

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State Conformity to Federal Pandemic-Related Tax Provisions in CARES and ARPA

April 1, 2021

How High Are Taxes on Recreational Marijuana in Your State?

March 31, 2021

State and Local Tax Burdens, Calendar Year 2019

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Facts and Figures 2021: How Does Your State Compare?

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