Business Climate

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 9 of Michigan’s 18 Fortune 500 companies which generated a combined revenue of over $427 billion in 2022. The Detroit region also offers low cost of living compared to other peer regions. In addition, Michigan ranks 11th among states for overall tax climate.

Fortune 500 Companies

RankCompanyHQ City2022 Revenue ($M)
19Ford Motor CompanyDearborn$158,057
21General MotorsDetroit$156,735
147Penske Automotive GroupBloomfield Hills$27,815
189Lear CorporationSouthfield$20,892
212DTE EnergyDetroit$19,228
262BorgWarnerAuburn Hills$15,801
338Aly FinancialDetroit$10,690
429AutolivAuburn Hills$8,842
Source: Fortune Magazine

Largest Private Firms

RankCompanyHQ City2022 Revenue ($M)
1Penske Corp.Bloomfield Hills$41,000
2Barton Malow Holdings LLCSouthfield$4,814
3Ilitch Holdings Inc.Detroit$4,400
4Lineage Logistics LLCNovi$4,000
5Moroun Family HoldingsWarren$3,940
6Plastipak Holdings Inc. Plymouth$3,874
7Wallbridge Detroit$3,603
8H.W. Kaufman Group Inc./Burns & WilcoxFarmington Hills$3,200
9Piston Group Southfield$3,181
10LaFontaine Automotive GroupHighland$2,463
Source: Crain’s Detroit Business

Cost of Living

According to the Council for Community and Economic Research (C2ER), the Detroit region’s cost of living is 102.1 Compared with other major metropolitan areas throughout the United States, the Detroit Region ranks 14th among other peer regions in terms of affordability.

Cost Of Living Index For Select Metro Areas, 2023 Average Data

RankMetro AreaIndex
1St. Louis, MO88.9
2Cleveland, OH91.4
3Indianapolis, IN92.1
4Minneapolis, MN93.3
5Tampa, FL96.2
6Charlotte, NC96.5
7Pittsburgh, PA98.0
8Atlanta, GA98.3
9Nashville, TN98.8
10Austin, TX98.9
11Baltimore, MD100.7
12Phoenix, AZ101.9
13Dallas, TX102.1
14Detroit, MI102.1
15Denver, CO110.3
16Chicago, IL 113.4
17Portland, OR120.2
18Seattle, WA144.6
19Boston, MA146.5
20San Francisco, CA170.0
Source: C2ER, 2023 Annual Average Data Report


According to The Tax Foundation’s State Business Tax Climate Index, Michigan ranked 11th 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, 12th for sales taxes, and 26th in the property tax category.

Michigan Personal Income Tax Rate: 4.25%
Michigan Corporate Income Tax Rate: 6.0%

2024 State Business Tax Climate Index

StateOverall RankCorporate Tax RankIndividual Income Tax RankSales Tax RankProperty Tax RankUnemployment Insurance Tax Rank
Source: Tax Foundation
Research & Data

Learn about the region’s economics, workforce and talent, industry clusters and more.

For additional information, contact the Data and Research team.

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