Personal Income Tax
4.25%
Michigan’s personal income tax system consists of a flat rate of 4.25% of an individual's or household's income
Corporate Income Tax
6%/4.25%
Michigan’s corporate income tax system consists of a flat rate of 6% of taxable income of firms structured as C corporations. Income for other business entities flows through to the owners’ personal income taxes and is taxed at a flat income tax rate of 4.25%.
Sales and Use Taxes
6%
Michigan levies a 6% general sales and use tax on purchases by consumers on tangible goods. Businesses pay the same 6% sales/use tax rate when purchasing consumer goods.
Personal Property Tax
Phased Out
Michigan began phasing out its Personal Property Tax (PPT) for most businesses in 2014. Timing of the phase out depended on the value of the personal property and when it was purchased. All first-owner purchases after 2012 became 100% exempt beginning 2016.
State Essential Services Assessment
0.24%-0.09% (declining over time)
Beginning January 1, 2016, a new state tax known as the state essential services assessment (SESA) was levied, replacing the current personal property tax. Funds collected are used to support the costs of local police, fire, ambulance, and jail services. The SESA will be imposed on the personal property that is now exempt from the personal property tax. The SESA will be computed on the acquisition cost of taxable property at a declining millage rate scale over time.
Real Property Taxes
$52.65 per $1,000 (average) 5.27% (average)
Michigan's 2017 average non-homestead property tax rate was 52.65 mills, or $52.65 per $1,000 of assessed property, with real and personal property subject to taxation at 50% of current market value. Michigan began phasing out its Personal Property Taxes for most businesses beginning in 2014. Businesses claiming the personal property tax exemption will instead be subject to a statewide special assessment, ranging from 0.9 to 2.4 mills, to fund essential services levied by local governments.