Michigan Has Low Tax Rates.
Michigan replaced the Michigan Business Tax, effective January 1, 2012, with a new, simpler and more competitive corporate income tax.
- Corporate Income Tax -The new structure taxes C-Corporations at 6 percent on federal taxable income apportioned to Michigan.
- Personal Property Tax – will phase out for most businesses beginning in 2014.
- Personal Income Tax – The personal income tax rate is 4.25 percent.
- The change reduces business taxes by an estimated 86 percent. All industries are in line for significant tax cuts, thus reducing operational costs and encouraging new investment in the state.
- Michigan’s overall business tax climate ranking is now 12th in the U.S., according to the Tax Foundation. In isolating the corporate tax rankings, the Foundation’s Michigan ranking jumps to 7th from the previous level of 49th.
The State of Michigan has a tax estimator available online to companies interested in relocating or expanding their businesses. Please visit the Department of Treasury website at Michigan Department of Treasury.
- Sales Tax – 6 percent
- Income Tax – Flat rate of 4.35 percent