Michigan Tax Rate

 

While federal tax rates apply to every taxpayer depending on their filing status, state income taxes vary by state. Some states have a flat tax rate, marginal tax rate, or don’t have any state taxes at all.

State tax is levied by Michigan on your income while living in or working within the state each year. State income taxes, which vary by state, are a percentage of money that you pay to the state government based on the income you earn. Read on to learn more about the Michigan tax rate and where to go for more information on state and local rates.

What is the Michigan Income Tax Rate?

Michigan imposes a flat tax rate. The Michigan income tax rate is 4.25%. The rate increased in 2008, from 3.90%. View the Michigan withholding tables.

There are 24 cities in Michigan that impose a local income tax rate of 1% on residents and 0.5% on non-residents. The cities that impose a local income state tax are as follows:

  • Albion
  • Battle Creek
  • Benton Harbor
  • Big Rapids
  • East Lansing
  • Flint
  • Grayling
  • Hamtramck
  • Hudson
  • Ionia
  • Jackson
  • Lansing
  • Lapeer
  • Muskegon
  • Muskegon Heights
  • Pontiac
  • Port Huron
  • Portland
  • Springfield
  • Walker

The exceptions to the above rates are as follows:

City Residents Nonresidents
Detroit 2.4% 1.2%
Grand Rapids 1.5% 0.75%
Highland Park 2% 1%
Saginaw 1.5% 0.75%

(Source: Michigan Department of Treasury)

View links to Michigan cities.

Where To Get More Information On The Michigan State Tax Rates

If you’re seeking more information about the Michigan state tax rates, visit the Michigan Department of Treasury website.

More Help With Michigan Taxes

Understanding your Michigan tax obligation can be tricky. Luckily, we’re here to save the day with H&R Block Virtual! With this service, we’ll match you with a tax pro with Michigan tax expertise. Then, you will upload your tax documents, and our tax pros will do the rest! We can help with your MI taxes, including federal deductions for paying state taxes.

Prefer a different way to file? No problem – you can find Michigan state tax expertise with all of our ways to file taxes.

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