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Below is a snapshot of key features of Michigan's tax system. (Scroll Down)
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State & Local Revenue (FY10)
- General Revenue, Own-Source (GROS): $55.5 billion
- General Revenue as a Share of Income: 16.5%
- Tax Revenue: $35.7 billion
- Tax Revenue as Share of income: 10.6%
- Personal Income Tax (Share of Tax Revenue): 16.4% (36 out of 51)
- Corporate Income Tax (Share of Tax Revenue): 1.9 % ( 38 out of 51)
- Sales & Excise Tax (Share of Tax Revenue): 36.5 % ( 20 out of 51)
- Property Tax (Share of Tax Revenue): 40.3 % ( 11 out of 51)
- Other Taxes (Share of Tax Revenue): 2.4 % (47 out of 51)
Personal Income Tax Features (2012)
- Range of Tax Rates: 4.32%
- Standard Deduction: None
- Personal Exemption: $3,800
- Dependent Exemption: $3,800
- Earned Income Tax Credit (EITC): 6% Refundable
- Flat income tax rate structure
- Tax rate will fall to 4.25% for Tax Years 2013 and later
- Significant tax break for retirement income depending on age
Corporate Income Tax Features (2012)
- Range of Tax Rates: 6.00%
- Income Level at Which Top Rate Applies: All
- Combined Reporting: Yes
- Apportionment Factor (Payroll): 0%
- Apportionment Factor (Property): 0%
- Apportionment Factor (Sales): 100%
Sales Tax Features (2012)
- State Sales Tax Rate: 6.00%
- Average Local Sales Tax Rate: N/A
- Average Combined State & Local Sales Tax Rate: 6.00%
- State Sales Tax Treatment of Groceries: Exempt
- Local Sales Tax Treatment of Groceries: N/A
- Number of Services Taxed: 26 out of 168 surveyed
- Streamlined Sales Tax Membership: Full
- Vendor Compensation available with high ceiling
- State sales tax applies to gasoline
Property Tax Features (2012)
- Provides a circuit breaker for homeowners and renters of all ages
- Taxable value increases capped at lesser of 5% or inflation.
Other Tax & Revenue Features (2012)
- Gasoline Tax Rate (per gallon): $0.395
- Diesel Tax Rate (per gallon): $0.373
- Cigarette Tax Rate (per pack): $2.00
- Estate or Inheritance Tax: No
- Net Lottery Sales Per Capita: $218
Tax Policy Oversight
- Tax Expenditure Report: Yes
- Tax Incidence Analysis Capability: Personal income tax only
Last Updated October 4, 2012
Sources & Glossary
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