Loading
Tap on the profile icon to edit
your financial details.

Michigan Income Tax Calculator

Your Details Done

Overview of Michigan Taxes

Michigan has a flat income tax rate across the state but some cities do charge an additional rate. Sales tax is relatively low for the region – with a flat rate for the entire state and no additional local sales taxes. Michigan has the seventh highest average effective property taxes in the nation. Retired? Use our Retirement Income Tax Calculator.

Enter your financial details to calculate your taxes
Household Income
Dismiss
Location
Dismiss
Filing Status
401(k) Contribution
Dismiss
IRA Contribution
Dismiss
Itemized Deductions
Dismiss
Number of Personal Exemptions
Dismiss

Your Income Taxes Breakdown

Tax Type Marginal 
Tax Rate
Effective 
Tax Rate
2017 
Taxes
2018 Trump Taxes*
Federal
FICA
State
Local
Total Income Taxes
Income After Taxes

* These will be the taxes owed for the 2018 - 2019 filing season.

Under the Trump Tax Plan (2018-2019 filing season), your Federal Income Tax will be and your FICA will be .

Changes to Your Federal Income
Taxes Under the Trump Tax Plan

  • Your marginal federal income tax rate will
  • Your effective federal income tax rate will
  • Your federal income taxes will

Total Estimated Tax Burden

Income Tax $
Sales Tax $
Fuel Tax $
Property Tax$
Total Estimated Tax Burden $
Percent of income to taxes = %
$
  • Our Tax Expert

    Jennifer Mansfield, CPA Tax

    Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.

    ...read more
Save more with these rates that beat the National Average
Unfortunately, we are currently unable to find savings account that fit your criteria. Please change your search criteria and try again.
Searching for accounts...
Ad Disclosure
Unfortunately, we are currently unable to find savings account that fit your criteria. Please change your search criteria and try again.
Searching for accounts...
Ad Disclosure
How helpful was this page in answering your question?
not helpful
very helpful
​If you could change one thing about ​this page what would it be?​
Thank you for your answer! Your feedback is very important to us.
We are working hard to improve our product and could use your help!
We pay $30 for 30 minutes on the phone to hear your thoughts on what we can do better.
Please enter your email if you'd like to be contacted to help.

Please enter your name
Michigan state tax quick facts
  • Income tax: 4.25% flat rate
  • Local income tax: 0%-2.4%
  • Sales tax: 6%
  • Property tax: 1.78% average effective rate
  • Gas tax: 42.14 cents per gallon of regular gasoline and 42.54 cents per gallon of diesel

The Great Lakes State has made a number of changes to its tax code in recent years. In 2012 Michigan’s statewide flat tax rate fell from 4.35% to 4.25%, although the city income taxes levied by 22 Michigan cities, including Detroit, were untouched. At the same time, Michigan increased its personal exemption.

Michigan has a single sales tax rate of 6%. Elected officials have proposed raising the sales tax to help fund transportation infrastructure spending, but all proposals have been rejected in recent years. However, Michigan has raised its gas tax to one of the highest rates in the county. Below, we’ll take an in-depth look at taxes across the state of Michigan to find out which rules and exceptions might affect you.

Michigan Income Tax

Michigan has a flat income tax system, which means that income earners of all levels pay the same rate: 4.25% of taxable income. That is the second-lowest rate for states with a flat tax. In Michigan, adjusted gross income (which is gross income minus certain deductions) is based on federal adjusted gross income. However, taxpayers in Michigan can also claim Michigan’s personal exemption, which is $4,000 for the 2017 tax year.

Some cities in Michigan also collect their own income taxes. These range from 1% up to 2.4% for residents, with non-residents who work in those cities paying half the resident rate (i.e. from 0.5% to 1.2%). The table below shows the local and total income tax rates for every city in Michigan that has its own income tax. Cities that are not listed do not have a local tax and so residents of those cities only pay the state income tax of 4.25%.

Michigan City Income Tax Rates

CityState RateCity RateTotal City and State Rate
Albion4.25%1.00%5.25%
Battle Creek4.25%1.00%5.25%
Big Rapids4.25%1.00%5.25%
Detroit4.25%2.40%6.65%
Flint4.25%1.00%5.25%
Grand Rapids4.25%1.50%5.75%
Grayling4.25%1.00%5.25%
Hamtramck4.25%1.00%5.25%
Highland Park4.25%2.00%6.25%
Hudson4.25%1.00%5.25%
Ionia4.25%1.00%5.25%
Jackson4.25%1.00%5.25%
Lansing4.25%1.00%5.25%
Lapeer4.25%1.00%5.25%
Muskegon4.25%1.00%5.25%
Muskegon Heights4.25%1.00%5.25%
Pontiac4.25%1.00%5.25%
Port Huron4.25%1.00%5.25%
Portland4.25%1.00%5.25%
Saginaw4.25%1.50%5.75%
Springfield4.25%1.00%5.25%
Walker4.25%1.00%5.25%

To file your federal tax return, you can look into the best tax software or hire a professional accountant.

Michigan Sales Tax

Unlike most other states, there are no city or county sales taxes in Michigan. This means that wherever you go in the state you will pay the same 6% sales tax. That rate is lower than most states in the region. While food served in restaurants is taxed at the normal tax rate, most other kinds of food are not. Prescription medications and newspapers are also exempt from this sales tax.

Michigan Property Tax

Michigan has the eighth-highest property taxes in the nation, as measured by average effective property taxes (that’s total taxes paid as a percentage of market value). On average, residents of the Great Lakes State pay 1.78% of their home values in property taxes every year. Since properties are valued and taxes are collected by local tax authorities, the amount of taxes paid varies significantly from one area to the next. For example, Leelanau County has a tax rate below 1.00% while Wayne County (in which Detroit is located) has an effective property tax rate of 2.77%, highest in the state.

If you’re looking to buy a house and wish to further explore your options, head to our Michigan mortgage rates guide, where you will find the details about getting a mortgage and mortgage rates in the state.

Calculate Your Property Taxes: Michigan Property Tax Calculator

Michigan Capital Gains Tax

Capital gains in Michigan are taxed as regular income, at the state income tax rate of 4.25%.

Michigan Estate Tax

Michigan does not have an estate or inheritance tax.

Michigan Gas Tax

Michiganders currently pay a gas tax of 42.14 cents per gallon, which is sixth-highest in the nation. When you add federal taxes and fees, Michigan’s gas tax is over 60 cents per gallon of gasoline. The tax for diesel fuel, 42.54 cents per gallon, is seventh-highest in the U.S.

Michigan Alcohol Tax

Beer, wine and liquor are taxed at different rates in Michigan. Beer is taxed at a rate of $6.30 per barrel, or about 1.9 cents per 12-ounce beer. This is below average for U.S. states. Wine is taxed at 13.5 cents per liter if it contains less than 16% alcohol and 20 cents per liter above that limit. Liquor is taxed at 12% of the sale price.

Photo Credit: flickr
  • Michigan’s Mackinac Bridge connects the upper and lower peninsulas. It is the 19th longest suspension bridge in the world.
  • Parts of Michigan near Lake Superior receive more than 200 inches of snow a year.
  • Detroit, Michigan is known as the “Motor City” because several of the nation’s largest automobile manufacturers, including General Motors Co. and Ford Motor Co., are based in the region.

Places with the Lowest Tax Burden

Are you curious how your tax burden stacks up against others in your state? SmartAsset’s interactive map highlights the counties with the lowest tax burden. Scroll over any county in the state to learn about taxes in that specific area.

Worse
Better
Rank County Income Tax Sales Tax Property Tax Fuel Tax

Methodology

Where you live can have a big impact on both which types of taxes you have to pay each year and how much money you spend on them. SmartAsset calculated the amount of money a specific person would pay in income, sales, property and fuel taxes in each county in the country and ranked the lowest to highest tax burden.

To better compare income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes.

In order to determine sales tax burden we estimated that 35% of take-home (after-tax) pay is spent on taxable goods. We multiplied the average sales tax rate for a county by the household income less income tax. This product is then multiplied by 35% to estimate the sales tax paid.

For property taxes, we compared the median property taxes paid in each county.

For fuel taxes, we first distributed statewide vehicle miles traveled down to the county level using the number of vehicles in each county. We then calculated the total number of licensed drivers within each county. The countywide miles were then distributed amongst the licensed drivers in the county, which gave us the miles driven per licensed driver. Using the nationwide average fuel economy, we calculated the average gallons of gas used per driver in each county and multiplied that by the fuel tax.

We then added the dollar amount for income, sales, property and fuel taxes to rank the counties to calculate a total tax burden.

Sources: US Census Bureau 2016 American Community Survey, Government Sources, Avalara, American Petroleum Institute, GasBuddy, UMTRI, Federal Highway Administration, SmartAsset