Business Climate
The Detroit region offers companies of all sizes and all industries one of the best business climates in the nation. The region is home to 10 of Michigan’s 17 Fortune 500 companies which generated a combined revenue of over $223 billion in 2020. The Detroit metro also offers low cost of living compared to other peer regions. In addition, Michigan ranks 12th among states for overall tax climate.
Fortune 500 Companies
| Rank | Company | HQ City | 2020 Revenue ($M) |
|---|---|---|---|
| 21 | Ford Motor Company | Dearborn | $127,144 |
| 22 | General Motors | Detroit | $122,485 |
| 143 | Penske Automotive Group | Bloomfield Hills | $20,443 |
| 179 | Lear Corporation | Southfield | $17,045 |
| 194 | Rocket Companies | Detroit | $15,980 |
| 250 | DTE Energy | Detroit | $12,117 |
| 287 | Ally Financial | Detroit | $10,165 |
| 295 | BorgWarner | Auburn Hills | $10,165 |
| 392 | Autoliv | Auburn Hills | $7,447 |
| 398 | Masco | Livonia | $7,289 |
Largest Private Firms
| Company | 2020 Revenue (billions) | Full-Time Employees in Detroit Area (Jan. 2021) |
|---|---|---|
| Penske Corp. | $30,000 | N/A |
| Ilitch Holdings Inc. | $4,100 | N/A |
| Plastipak Holdings Inc. | $2,900 | 650 |
| Piston Group | $2,876 | 865 |
| Moroun Family Holdings | $2,746 | N/A |
| H.W. Kaufman Group Inc./Burns & Wilcox | $2,450 | 257 |
| The Suburban Collection | $2,421 | 2,537 |
| Barton Malow Holdings LLC | $2,336 | 1,052 |
| Victory Automotive Group | $2,094 | N/A |
| Walbridge | $1,912 | 500 |
Cost of Living According to the Council for Community and Economic Research (C2ER), the Detroit region’s cost of living is only 103.0. Compared with other major metropolitan areas throughout the United States, the Detroit region is a very affordable place to live.
Cost of Living Index for Select Metro Areas, 2021 Average Data
| Metro Area | Index |
|---|---|
| Memphis, TN | 84.9 |
| St. Louis, MO | 87.1 |
| Columbus, OH | 91.5 |
| Cleveland, OH | 93.7 |
| Buffalo, NY | 94.4 |
| Minneapolis, MN | 102.9 |
| Detroit, MI | 103.0 |
| Baltimore, MD | 103.8 |
| Pittsburgh, PA | 103.4 |
| Atlanta, GA | 105.0 |
| Dallas, TX | 107.7 |
| Philadelphia, PA | 109.8 |
| Denver, CO | 113.5 |
| Chicago, IL | 123.3 |
| Seattle, WA | 152.7 |
| Boston, MA | 153.2 |
| Washington-Arlington-Alexandria, DC-VA | 158.1 |
| San Francisco, CA | 194.1 |
| Manhattan, NY | 255.0 |
Taxes
According to The Tax Foundation’s State Business Tax Climate Index, Michigan ranked 12th among states for overall tax climate. The Index is designed to show how well states structure their tax systems. Michigan also ranked 20th for its corporate tax, 12th for individual income taxes, 10th for sales taxes, and 21st in the property tax category.
Michigan Personal Income Tax Rate: 4.25%
Michigan Corporate Income Tax Rate: 6%
2022 State Business Tax Climate Index
| State | Overall Rank | Corporate Tax Rank | Individual Income Tax Rank | Sales Tax Rank | Property Tax Rank | Unemployment Insurance Tax Rank |
|---|---|---|---|---|---|---|
| Michigan | 12 | 20 | 12 | 10 | 21 | 7 |
| Missouri | 13 | 3 | 21 | 25 | 8 | 4 |
| Texas | 14 | 47 | 7 | 36 | 37 | 14 |
| Washington | 15 | 39 | 7 | 49 | 20 | 24 |
| Wisconsin | 27 | 31 | 37 | 7 | 28 | 16 |
| Georgia | 32 | 8 | 35 | 33 | 25 | 37 |
| Massachusetts | 34 | 36 | 11 | 12 | 45 | 50 |
| Illinois | 36 | 42 | 13 | 39 | 48 | 40 |
| Ohio | 37 | 40 | 41 | 35 | 6 | 10 |
| Minnesota | 45 | 45 | 43 | 29 | 32 | 30 |
