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?

Top Individual Income Tax Rate

4.25%

See Full Study

State and Local Individual Income Tax Collections per Capita

$1082

Click for a comparative tax map!

State and Local Tax Burden

8.6%

Click for a comparative tax map!
See Full Study

Top Corporate Income Tax Rate

6.00%

See Full Study

State Business Tax Climate Index Ranking

12

See Full Study

State Sales Tax Rate

6.00%

Click for a comparative tax map!
See Full Study

Combined State and Average Local Sales Tax Rate

6.00%

Click for a comparative tax map!
See Full Study

State and Local General Sales Tax Collections per Capita

$916

Click for a comparative tax map!

State Gasoline Tax Rate (cents per gallon)

45.17¢

Click for a comparative tax map!

State Cigarette Tax Rate (dollars per 20-pack)

$2.00

Click for a comparative tax map!

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

1.38%

Click for a comparative tax map!

State and Local Property Tax Collections Per Capita

$1594

Click for a comparative tax map!

Featured Articles

Does Your State Tax Recreational Marijuana?

April 18, 2023

America’s Progressive Tax and Transfer System: Federal, State, and Local Tax and Transfer Distributions

March 30, 2023

Close to Home: A Short Guide to Property Taxes

March 27, 2023

Facts & Figures 2023: How Does Your State Compare?

March 23, 2023

State Individual Income Tax Rates and Brackets for 2023

February 21, 2023

State and Local Sales Tax Rates, 2023

February 7, 2023

Related Articles

Ranking Property Taxes on the 2023 State Business Tax Climate Index

May 30, 2023

Compare Tobacco Tax Data in Your State

May 24, 2023

Ranking Sales Taxes on the 2023 State Business Tax Climate Index

May 16, 2023

Ranking Individual Income Taxes on the 2023 State Business Tax Climate Index

May 2, 2023

Is Michigan’s Tax Cut Temporary or Permanent?

April 19, 2023

Does Your State Tax Recreational Marijuana?

April 18, 2023

America’s Progressive Tax and Transfer System: Federal, State, and Local Tax and Transfer Distributions

March 30, 2023

Close to Home: A Short Guide to Property Taxes

March 27, 2023

Facts & Figures 2023: How Does Your State Compare?

March 23, 2023

State Individual Income Tax Rates and Brackets for 2023

February 21, 2023

State and Local Sales Tax Rates, 2023

February 7, 2023

State Tax Policy as an Inflation Response

January 26, 2023

State Corporate Income Tax Rates and Brackets for 2023

January 24, 2023

Americans Moved to Low-Tax States in 2022

January 10, 2023

State Tax Changes Taking Effect January 1, 2023

December 22, 2022

Excise Taxes and Fees on Wireless Services Increase Again in 2022

December 20, 2022

The Efficiency of State Administration of Local Taxes

December 13, 2022

Cigarette Taxes and Cigarette Smuggling by State, 2020

December 6, 2022

States Should Make Full Expensing Permanent to Help Curb Inflation

November 29, 2022

Ranking State Tax Systems: Corporate Taxes

November 22, 2022