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?

 

Related Articles

Michigan Doubles Down on Government-Led Economic Development

October 15, 2009

Governor Granholm’s Energetic but Futile Effort to Buy Jobs

October 6, 2009

Michigan: Bad Tax Policy, Bad Economy

October 1, 2009

Michigan Study: Targeted Tax Incentives Fail to Spur Economic Growth

September 21, 2009

Detroit Mayor Considers Privatizing Tax Collections

August 14, 2009

Michigan and Ohio are Not Examples of “Failed Low Tax Policy”

July 7, 2009

Detroit Contracting and Depopulating

June 23, 2009

And the [News] Beat Goes On: Another Sampling of Media Coverage From a Busy Tax Week

April 16, 2009

A Family Leaves Michigan Every 12 Minutes

April 4, 2009

Tax Foundation Research Plastered in Editorial Sections This Week

March 12, 2009

BusinessWeek Features State Business Tax Climate Index; State-Local Tax Reports in Editorial Pages This Week

December 31, 2008

State Budgets: Michigan Shutters Prison But Continues Credits and Subsidies to Favored Businesses

December 29, 2008

Tax Foundation in Idaho and Arkansas, and the Best of the Blogosphere in the States

December 4, 2008

Congress Considers Bailout for Detroit Lions (Satire)

November 23, 2008

Tax Foundation in College Newspapers, and the Best of the Blogosphere

November 17, 2008

MEGA-Silly Tax Credits in Michigan

July 16, 2008

Michigan Hopes Tax Credits Will Move Hollywood to Detroit

June 16, 2008

Michigan Round-Up

June 5, 2008

Michigan Tax Revenue Under Projection After Tax Hikes

May 28, 2008

Home Builders Lobby Now Targeting Michigan Legislature for More Tax Handouts

May 27, 2008