State taxes: Michigan


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Michigan’s tax rate is a flat rate 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.

Personal income tax

Michigan’s personal income tax rate dropped to 4.25% on Jan. 1, 2013. 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 taxes

Michigan’s state sales tax and corresponding use tax is 6%.

The state does not allow city or local sales taxes.

Personal and real property taxes

Property taxes are assessed at the local, not state, level. The 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.

Owner owned and occupied homesteads may be exempt from a portion of local school operating taxes. Claim an exemption by filing Form 2368 with your township or city by June 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’s 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 6 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 1 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 website and at the LIHEAP website.

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.

Other Michigan tax facts

Michigan taxpayers can check the status of their refunds online.

Retirees may be able to exclude some of their pension income from Michigan taxes.

Michigan’s intangible property tax for individuals was repealed Jan. 1, 1998.

Assistance is available at the Michigan Department of Treasury website.

To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.