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Michigan Income Tax Rates 2025

Michigan has a flat income tax rate of 4.25% on all taxable income, regardless of how much you earn. Some Michigan cities also impose an additional local income tax on residents and workers.

Tax Type

Flat

Rate Range

4.25% flat

Brackets

1

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Michigan is only part of the equation — federal taxes apply too.

State Tax Ranking

#22 of 51 Moderate tax burden at $75,000 income

At $75,000 income (single filer), Michigan ranks #22 out of 51 states — where #1 is the lowest tax burden.

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Tax at Different Income Levels

Income State Tax Effective Rate Take-Home
$50,000 $2,125 4.25% $44,004
$75,000 $3,188 4.25% $63,864
$100,000 $4,250 4.25% $82,301
$150,000 $6,375 4.25% $118,558
$200,000 $8,500 4.25% $154,433

Single filer, standard deduction, 2025 tax year. Take-home is after federal + state income tax (excludes FICA).

Tax Overview

This state uses a flat income tax rate, meaning the same percentage applies to all taxable income regardless of how much you earn. This simplifies tax planning but means there is no bracket benefit for lower earners. The effective rate is very close to the headline rate after deductions.

Tax Planning Tip

With a flat tax rate, your effective state rate is predictable and consistent. Focus tax reduction on pre-tax contributions (401k, HSA) and any state-specific deductions or credits available.

With a flat tax, your Michigan state income tax is simply 4.25% of your taxable income. Some Michigan cities, including Detroit, levy an additional local income tax — typically 1% to 2.4% for residents and 0.5% to 1.2% for non-residents who work in the city. Michigan does not tax Social Security benefits.

Property Tax & Cost of Living

Property Tax Rate
1.40%
$3,290/yr on $235,000 home
Cost of Living Index
90
10% below national average
Median Home Value
$235,000
Housing index: 73 (avg = 100)

Property tax rate is the state average effective rate. Actual rates vary by county. COL index from BEA Regional Price Parities.

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Frequently asked questions

What is Michigan's income tax rate in 2025?

Michigan has a flat income tax rate of 4.25% on all taxable income, regardless of how much you earn.

Does Michigan tax Social Security benefits?

Michigan does not tax Social Security benefits at the state level.

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Last updated May 1, 2026 Tax year 2025-26

Data sources: IRS (irs.gov), Social Security Administration

This tool is general information only, not financial advice.

Reviewed by USTax Tools Editorial Desk

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