Michigan Income Tax
Michigan has a flat income tax with a rate of 4.25%. All taxable income is taxed at the same rate regardless of how much you earn.
Michigan Sales Tax
The state sales tax rate in Michigan is 6%. With an average local sales tax of 0%, the combined average sales tax rate is 6%.
Michigan Property Tax
The effective property tax rate in Michigan is 1.38%. With a median home value of $213,400, the median annual property tax bill is $2,760 ($230/month).
Corporate & Business Taxes
The corporate tax rate in Michigan is 6%.
Other Taxes in Michigan
| Tax Type | Rate / Amount |
|---|---|
| Gas Excise Tax | $0.28/gallon |
| Cigarette Tax | $2.00/pack |
| Estate Tax | No |
| Inheritance Tax | No |
Key Facts
Flat income tax. High property taxes but no estate or inheritance tax.
Compare to Other States
See how salaries compare on our average salary in Michigan page. Thinking about starting a business? Check our LLC guide for Michigan. See the current minimum wage in Michigan.
Financial Calculators
Plan your finances in Michigan with our free tools:
- Paycheck Calculator — estimate take-home pay after taxes
- Salary Calculator — convert hourly to annual pay
- Mortgage Calculator — estimate monthly home payments
- Home Affordability Calculator — see how property taxes affect what you can afford