Compare state tax rates and rules — on income, ordinary purchases, gas, sin products, property, and more — across the U.S. Go to the Kiplinger Tax Map Michigan Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Not Tax Friendly Michigan is one of just a handful of U.S. states with a flat tax — the rate is a modest 4.25%. But 23 cities levy income taxes as well. The usual levy is 1%, but a few go higher, notably Detroit, at 2.4%. Nonresidents who work in these jurisdictions pay the tax as well, at half the rate. Property taxes are steep. Sales Tax 6% state levy. No local taxes. Income Tax Range Michigan has a flat tax rate of 4.25%. Cities can levy income taxes as well, on both residents and non-residents (who are taxed 1/2 the rate of residents). In Detroit, the resident rate is 2.4%; the state average is 1.70%, according to the Tax Foundation. Effective tax rate: 4.25% for single filers, 4.25% for joint filers Motor Fuel Taxes Gasoline: $0.4198 per gallon. Diesel: $0.4330 per gallon. Property Taxes In Michigan, residents pay an average of $1,729 in taxes per $100,000 of assessed home value. Vehicle Taxes Sales tax is due. Sin Taxes Cigarettes: $2.00 per packOther tobacco products: 32% of wholesale priceBeer: $0.10 per gallonWine: $0.51 per gallonLiquor: $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. Taxes On Wireless Service 8.35% Inheritance and Estate Taxes None. About our methodology