Michigan Tax Rates & Tax Burden
Tax Burden
8.6%
5th lowest
Top Income Tax
4.25%
1 bracket
Combined Sales Tax
6%
6% state rate
Property Tax
1.148%
Effective rate
Individual Income Tax
Source: Tax Foundation (2025)Top Marginal Rate
4.25%
Number of Brackets
1
Collections per Capita
$1,143
Michigan levies a state individual income tax with a top marginal rate of 4.25% (flat rate). Income tax collections total $1,143 per capita.
Top Marginal Income Tax Rate by State
Sales Tax
Source: Tax Foundation (2025)State Rate
6%
Avg. Local Rate
N/A
Combined Rate
6%
Collections per Capita
$1,281
Michigan has a state sales tax rate of 6%. When combined with average local sales taxes, the total combined rate is 6%. Sales tax collections total $1,281 per capita.
Combined Sales Tax Rate by State
Property Tax
Source: Tax Foundation / Census (2025)Effective Rate
1.148%
Collections per Capita
$1,701
The effective property tax rate in Michigan is 1.148% of owner-occupied housing value. Property tax collections total $1,701 per capita.
Effective Property Tax Rate by State
Gas & Fuel Tax
Source: Tax Foundation (2025)Gas Tax
48¢/gal
Michigan levies a total gas tax of 48¢/gal per gallon, which includes both excise taxes and other fees. The national average is 32.6¢/gal.
Gas Tax by State (¢/gallon)
Corporate Income Tax
Source: Tax Foundation (2025)Top Corporate Rate
6%
Michigan levies a corporate income tax with a top rate of 6%.
Top Corporate Income Tax Rate by State
Business Tax Climate
Source: Tax Foundation SBTCI (2025)Business Climate Rank
#14
of 50 states
Tax Burden Rank
#5
5th lowest burden
Total Collections / Capita
$3,686
The Tax Foundation's State Business Tax Climate Index ranks Michigan #14 out of 50 states for overall tax competitiveness. This index evaluates corporate taxes, individual income taxes, sales taxes, property taxes, and unemployment insurance taxes.
The total state and local tax burden in Michigan is 8.6% of state income, compared to the national average of 10.56%.
Business Tax Climate Rank by State (1 = Best)
How Michigan Compares
Tax Burden by State (% of Income)
| Metric | Michigan | National Avg. |
|---|---|---|
| Tax Burden (% of income) | 8.6% | 10.56% |
| Combined Sales Tax | 6% | 7.21% |
| Property Tax (effective) | 1.148% | 0.873% |
| Gas Tax (¢/gallon) | 48¢/gal | 32.6¢/gal |
| Collections per Capita | $3,686 | $4,397 |