State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2021

Michigan State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.


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The Bottom Line
Flag of Michigan

Least Tax-Friendly

Michigan has a flat state income tax of 4.25%, which municipalities get to add to. Municipalities cannot, however, add to the state sales tax, which remains a modest 6%. Property taxes are well above the national average, however. All-in-all, not a good place for middle-class families when it comes to state and 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).

Sales Tax

6% state levy. No local taxes.

Groceries: Exempt, but prepared food is taxable
Clothing: Taxable
Motor Vehicles: Taxable
Prescription Drugs: Exempt

Real Property Taxes

In Michigan, the median property tax rate is $1,501 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 45.17¢ per gallon.
Diesel: 47.16¢ per gallon.

Sin Taxes

Cigarettes: $2 per pack
Premium cigars (more than $1.56/piece wholesale): $0.50 per cigar
Other tobacco products: 32% of wholesale price

Beer: $0.20 per gallon
Wine: $0.51 per gallon ($0.76 if above 16% alcohol by volume)
Liquor: 12% of retail price (4% general fund tax, 4% state school aid tax, and 4% convention facility development tax)

Marijuana: 10% excise tax, plus state sales tax

Annual Car Taxes and Fees

No annual vehicle tax or fee is imposed.

Estate and Inheritance Taxes

No estate or inheritance tax.