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 2022 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. 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?

 

Top Individual Income Tax Rate

4.25%

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State and Local Individual Income Tax Collections per Capita

$1082

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State and Local Tax Burden

8.6%

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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

$963

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State Gasoline Tax Rate (cents per gallon)

45.17¢

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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

1.38%

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State and Local Property Tax Collections Per Capita

$1524

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