Michigan state tax: Overview
Michigan's median property tax rate is relatively high, and fuel taxes are high compared to other states.
The Great Lakes State currently has a flat state income tax of 4.25%, but municipalities add their own taxes. Sales taxes in Michigan are relatively low.
In the News: Michigan tax credit checks (referred to by some as Michigan stimulus checks), were sent to more than 700,000 families since the state’s expanded working families tax credit became effective. These rebate checks are separate from any Michigan state tax refund residents receive for the 2023 tax year. For more information, see Michigan Tax Credit Checks 2024.
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[Data for this state tax guide was gathered from a number of sources including the U.S. Census Bureau, the state’s government website, and the Sales Tax Handbook. Property taxes are cited as a rate percentage rather than the assessed value.]
Michigan income tax rate 2024
For 2023, Michigan reduced its flat individual income tax rate from 4.25% to 4.05%. For 2024, however, the Michigan flat individual income tax rate returns to 4.25%.
The reduction was due to a state law that automatically reduces the income tax rate based on the relationship between revenue growth and inflation rates.
- Social Security: Not taxable
- Pensions: Partially taxable (Military pensions are tax-exempt)
- 401(k) and IRA Distributions: Partially taxable
- Military pensions and Railroad Retirement benefits are exempt in Michigan.
Michigan sales tax
Michigan's sales tax rate is 6%. There are no local taxes.
- Groceries: Exempt, but prepared food is taxable
- Clothing: Taxable
- Motor Vehicles: Taxable
- Prescription Drugs: Exempt
How much is property tax in Michigan?
In Michigan, the property tax rate paid as a percentage of assessed value is 1.38% according to the Tax Foundation.
Michigan gas tax
| Product | Tax |
|---|---|
| Gasoline | $0.19 per gallon |
| Disel | $0.15 per gallon |
Source: The Sales Tax Handbook
Michigan taxes on alcohol and tobacco
Michigan tobacco taxes
| Product | Tax |
|---|---|
| Cigarettes | $2 per pack |
| Other Tobacco Products | 32% of wholesale price |
| Medical Marijuana | 6% |
| Recreational Marijuana | 16% (cannabis sales tax plus 10% state excise tax) |
Michigan alcohol taxes
| Product | Tax |
|---|---|
| Beer | $0.20 per gallon |
| Wine | $0.51 per gallon ($0.76 if above 16% alcohol by volume) |
| Liquor | state controlled |
Source: The Sales Tax Handbook
Michigan estate and inheritance taxes
Michigan has no estate or inheritance tax.
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