Michigan (MI) Tax Rates — 2026

Income Tax 4.25%

Sales Tax 6%

Property Tax 1.38%

Income Tax

Type: Flat rate — 4.25% on all taxable income

Standard Deduction: N/A (uses personal exemptions or credits instead)

Sales Tax

State Rate6%

Avg Local Rate0%

Combined Rate6%

Groceries: Exempt

-0.57% vs national avg

Property Tax

Effective Rate1.38%

Median Annual Tax$2,551

+0.31% vs national avg (1.07%)

Retirement Income Tax

Social SecurityNO

PensionsPARTIAL

401(k) / IRAYES

Estate & Inheritance Tax

Has Estate Tax: NO

Corporate Tax

Corporate Income Tax Rate: 6%

Additional Notes

Michigan has a flat income tax. Uses personal exemptions (about $5,400 each). Pension taxation depends on birth year: those born before 1946 receive a full exemption; 1946-1952 partial exemption; 1953+ generally taxed.

Compare with another state:

No Income Tax States
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All Income Tax Rates
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Best for Retirees

Sources: Michigan Department of Revenue; Tax Foundation, Facts & Figures 2025; IRS Publication 17.