Michigan Tax Guide
4.25%top marginal rate
Michigan has a flat income tax of 4.25%. Property taxes are above the national average, especially in metro Detroit. Some cities, including Detroit, levy their own additional income tax. No estate or inheritance tax.
Michigan Tax at a Glance
Income Tax
4.25%
Flat rate
Sales Tax
6%
State-level rate
Property Tax
1.54%
40% above the national average
Estate Tax
No
No state estate tax
How Michigan Compares to the National Average
Notable Tax Facts
- Flat income tax of 4.25% — has been at this rate since 2012
- Detroit and some other cities levy their own additional income tax (up to 2.4% for non-residents)
- Property taxes are above the national average at ~1.54%
- No estate or inheritance tax
Get Glen’s Updates
Investing insights, new tools, and whatever I’m building this week. Free. No spam.
Unsubscribe anytime. I respect your inbox more than Congress respects property rights.
Michigan Tax FAQ
What is Michigan's income tax rate?
Michigan has a flat income tax rate of 4.25%. Some cities levy additional income taxes — Detroit charges 2.4% for residents and 1.2% for non-residents working in the city.
Does Michigan have city income taxes?
Yes. About 24 Michigan cities levy their own income tax. Detroit's is the highest at 2.4% for residents. Most other cities charge about 1% for residents.
Does Michigan tax retirement income?
Michigan's treatment of retirement income depends on when you were born. Those born before 1946 get the most generous exemptions, while those born after 1963 generally pay tax on retirement income.
Are Michigan property taxes high?
Yes. Michigan's effective property tax rate of about 1.54% is well above the national average. Proposal A (1994) shifted school funding partly to sales tax but didn't dramatically lower property taxes.
Compare With Other States
Recommended Resources
Tools & books I actually use and recommend
Interactive Brokers
Low commissions, global market access, and professional-grade tools. This is where I hold my positions.
Open an AccountThe Psychology of Money
Morgan Housel on why managing money is about behavior, not intelligence. Short, brilliant chapters you'll re-read.
View on AmazonA Random Walk Down Wall Street
Burton Malkiel's classic case for index investing. The book that convinced millions to stop stock-picking.
View on AmazonSome links above are affiliate links. I only recommend products I personally use. See my full disclosures.
Keep Exploring
Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.