Michigan state income tax rates

Michigan personal income tax rates for 2024

Michigan levies a flat income tax rate of 4.25 percent. Local income taxes also are collected by many cities in Michigan, with rates ranging from 0.5 percent to 2.4 percent.

Michigan income taxes are due April 15 unless that day falls on a holiday or weekend, in which case the deadline is the next business day.

Who has to file Michigan state taxes?

Full and partial-year residents must file a state income tax return. Some workers who don’t live in the state, but who earned income from a business in Michigan or conducted business in the state, may also owe income tax.

Also, if you had winnings from the lottery, casinos or race track, you must also file an income tax return.

Young adults whose parent or guardian can claim them as a dependent and who have adjusted gross income of $1,500 or less, if filing as single or married filing separately, or $3,000 or less, if married filing jointly, don’t have to file a return unless they’re claiming a refund. To qualify as a dependent, you must be under age 19 or under age 24 if registered as a full-time student, or any age if you’re permanently disabled. The dependent must also live with the parent or guardian and receive more than half of their financial support from the parent or guardian.

Is there a personal exemption or standard deduction in Michigan?

Michigan generally doesn’t offer a standard deduction (though taxpayers who are 67 or older may qualify to claim a standard deduction to offset pension income — see more on the Michigan state website).

Michigan does offer personal exemptions: Single taxpayers receive a $5,600 exemption, and married filing jointly filers can claim $11,200. You also receive a $5,600 exemption for each qualifying dependent.

Taxpayers born before 1946 may be able to deduct part of their interest, dividends or capital gains, with a limit of $14,274 for single filers and $28,548 for those married filing jointly.

Michigan sales tax rate

Michigan residents pay a 6 percent sales tax on goods and services, while sales of electricity, natural or artificial gas and home heating fuels are subject to a 4 percent tax rate for residential users. Unlike some other states, local governments in Michigan are not allowed to impose their own sales taxes.

Other things to know about Michigan state taxes

• Michigan property taxes are calculated based on a millage system, where the rate is calculated by multiplying the property’s taxable value by the millage rate, which varies from city to city. The effective (average) property tax in the state is 1.24 percent, according to the Tax Foundation.
• The state does not have an estate tax. There is an inheritance tax but it applies only to estates of people who died before Oct. 1, 1993.
• The corporate tax rate is 6 percent. There is an income tax credit for small businesses based in the state.
• The gasoline tax is 31 cents per gallon, but there is also a prepaid fuel sales tax that is paid by the gasoline retailer but gets passed on to customers. It varies from month to month. In February 2025, for instance, it was 15.4 cents per gallon, bringing the Michigan tax on gas to 46.4 cents per gallon.
• There is a cigarette tax of $2 per 20-pack.
• Marijuana is now legal in Michigan; there is a 10 percent tax levied on sales of marijuana in addition to the 6 percent sales tax.