Michigan Tax Overview
Michigan levies a flat income tax rate of 4.25% with no standard deduction, though it offers personal exemptions. Some Michigan cities, most notably Detroit, impose their own additional income taxes of up to 2.4%. Michigan exempts most retirement income from taxation, making it attractive for retirees.
Michigan Tax Quick Facts (2026)
| Income Tax | flat (top rate: 4.3%) |
| Sales Tax (State) | 6.00% |
| Property Tax (Avg Effective) | 1.32% |
| Median Household Income | $66,986 |
| Capital | Lansing |
| Population | 10.0 million |
Frequently Asked Questions About Michigan Taxes
Does Michigan have a state income tax?+
Yes, Michigan has a flat income tax system with a top marginal rate of 4.3%.
What is the property tax rate in Michigan?+
The average effective property tax rate in Michigan is approximately 1.32% of assessed home value. On a $300,000 home, that is about $3,960 per year.
What is the sales tax rate in Michigan?+
The state sales tax rate in Michigan is 6.00%. Local jurisdictions may add additional sales tax.
What is the median household income in Michigan?+
The median household income in Michigan is approximately $66,986 per year.
How does Michigan's tax burden compare to other states?+
Michigan's total tax burden depends on income tax, property tax, and sales tax combined. Use the calculator above to compare your specific situation.
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James Whitfield, CPA, MST
James Whitfield is a Certified Public Accountant with a Master of Science in Taxation. He specializes in US federal and state tax calculations and ensures all tax-related tools meet current IRS guidelines. Last updated: April 2026. Uses 2026 tax year data from state revenue departments and IRS publications.