Michigan Income Tax Calculator

Estimate your Michigan income tax burden

Updated for 2023 tax year on Dec 8, 2023

Income tax calculators by state

Michigan state taxes

Michigan income taxes

Michigan takes a straightforward approach to income tax, maintaining a flat rate of 4.25%. Regardless of the amount you earn, this percentage of your taxable income will be payable to the state.

In terms of payroll taxes, there are specific contributions that employers and employees make. One of the primary levies is the Unemployment Insurance Tax, which is employer-funded and has a standard rate of 2.37% for new employers.

Some residents and nonresidents may be subject to a city income tax. The cities imposing this tax include Detroit, Grand Rapids, Lansing, and Flint, among others.

Michigan doesn’t offers a standard deduction but residents can claim exemptions.

Calculate your income tax in Michigan

Calculating your Michigan state income tax is similar to the steps we listed on our Federal income tax calculator:

1. Determine your filing status
2. Work out your adjusted gross income [Gross income − Retirement contributions = Adjusted gross income]
3. Calculate your state taxable income [Adjusted gross income − (Itemized deductions + Exemptions) = State taxable income]
4. Figure out your state/local tax liability [State taxable income × State tax rate = State tax liability]
5. Deduce your state payroll tax liability [Gross income × State payroll tax rate = State payroll tax liability]
6. Add up all state and local taxes [State tax liability + State payroll tax liability = Total state income taxes]

State income tax brackets

Refer to Tax Foundation for more details.

Local income tax

State exemptions

There is state-level exemptions for all type of filers and dependents. Refer to Tax Foundation for more details.

Michigan sales tax

With a flat rate of 6%, Michigan’s sales tax is applied to most goods and services.

Michigan property tax

The property tax landscape in Michigan is variable, with rates differing depending on the city or county. Nevertheless, the state average is around 1.64%.

Michigan capital gains tax

In Michigan, capital gains are subject to the state income tax.

Michigan gas tax

The gas tax in Michigan is a hefty 44.1 cents per gallon.

Michigan tobacco tax

Michigan’s tobacco tax is $2 per pack of 20 cigarettes.

Michigan insurance tax

In Michigan, insurance premium tax rates range from 1.07% to 2.5%, depending on the type of insurance. Property and casualty insurance, for instance, is subject to higher rates than life insurance.

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