Tool | August 2016

State-by-State Guide to Taxes

Compare state tax rates and rules -- on income, ordinary purchases, gas, "sin" products, property, and more -- across the U.S.

Michigan

View State Compare List
(0) selected | Compare up to 5

The Bottom Line
Map of Michigan

Mixed Tax Picture

Michigan is one of just a handful of U.S. states with a flat tax -- the rate is a modest 4.25%. Property taxes, particularly in Detroit, are steep.

Sales Tax

State levy of 6%. No local taxes.

Income Tax Range

Michigan has a flat tax rate of 4.25%.



See Kiplinger.com’s Retiree Tax Map to learn how Michigan taxes Social Security income and other forms of retirement income.

Motor Fuel Taxes

Gasoline: $0.33 per gallon.
Diesel: $0.29 per gallon.

Property Taxes

The median property tax on Michigan's median home value of $125,700 is $2,147.

See Kiplinger.com’s Retiree Tax Map for details on tax breaks for seniors in Michigan.

Vehicle Taxes

6% "use tax" is levied on purchases.

Sin Taxes

Beer: $0.10 per gallon
Wine: $0.51 per gallon
Liquor: $11.90 per gallon
Michigan directly controls the distribution and sale of alcohol. Liquor tax is an estimate by the Distilled Spirits Council of the United States and published by the Tax Foundation.

Cigarettes: $2.00 per pack
Other tobacco products: 32% of wholesale price

Travel Taxes

Hotel: There is no statewide tax on lodging, but sales tax is due. Localities can add their own taxes; Detroit’s is 9%.

Rental cars: 6%. The Detroit area has a 2% tax to help pay for a stadium. Sales tax is due.

Taxes On Wireless Service

8.3%

Inheritance and Estate Taxes

There is no inheritance tax or estate tax.

About our methodology