Michigan's tax rate is a flat rate of 4.35 percent of federal adjusted gross income with modifications. Some cities impose additional income taxes. More on Michigan taxes can be found in the tabbed pages below.
Income
Sales
Property
Estate
Other
Personal income tax
Effective Oct. 1, 2007,
the Michigan income tax
rate increased from a flat
3.9 percent of adjusted
gross income to 4.35 percent.
This rate is effective through
Sept. 30, 2011.
Michigan tax returns are due by April 15, or the next business day if that date falls on a weekend or holiday.
Several
cities also impose additional
income taxes, meaning different
forms must be filed in varying
municipalities.
Sales tax
Michigan's state sales tax is 6
percent.
The state does not allow city or
local taxes.
Personal and real property taxes
Property taxes are assessed on
the local, not state, level. This property
tax estimator can give you an idea of your upcoming bill.
Michigan taxpayers with tangible
personal property on Dec. 31 must file a personal property statement
with the local municipality or township assessor of the jurisdiction
where the property is located as of that date. The return must
be filed by Feb. 20 of the tax year or sooner in some jurisdictions
requiring the filing by an earlier date.
Some senior citizens, disabled
people, veterans, surviving spouses of veterans and farmers
may be able to delay paying property taxes. It depends on the
county in which you live and your income level. Contact your
local or county treasurer for more information about delaying
payment of your property taxes.
If you
own and occupy your homestead,
it may be exempt from a portion
of your local school operating
taxes. To claim an exemption,
complete Form
2368 and file it with your
township or city by May 1. Your
local assessor will adjust your
taxes on your next property tax
bill. This is an exemption from
part of the taxes and does not
affect your assessment. More information
on the exemption can be found
in guidelines released from Michigan
Department
of Treasury.
You
also may be able to claim
a property
tax credit on your personal
income tax return if (1) your
homestead is located in Michigan;
(2) you were a Michigan resident
at least six months of the
tax year; and (3) you pay
property taxes or rent on
your Michigan homestead.
There are income limits on who may
claim a property tax credit and you can have only one homestead
at a time. A vacation home or income property is not considered
your homestead.
Low-income
families may be eligible for the
Home Heating Credit, funded through
the federal Low Income Home Energy
Assistance Program. Further information
can be found on Michigan's government
Web
site and at the LIHEAP
Web site.
Inheritance and estate taxes
Michigan does not collect an inheritance
tax.
Since its estate tax was related
to federal estate tax collection, the phasing out of the federal statute means Michigan no longer collects an estate tax.
