Michigan Tax Policy & Rates 2026
Income tax, sales tax, property tax, and overall tax burden for Michigan in 2026, with political context.
No
No Income Tax
4.05% (flat)
Income Tax Rate
#23
Tax Burden Rank (1=highest)
#39
Property Tax Rank (1=highest)
Tax Policy Overview
Michigan has a flat income tax and moderate overall tax burden. The state restored tax deductions for retirement income that Republicans had eliminated. Proposal A from 1994 limits property tax increases for existing homeowners, creating significant disparities.
Key Tax Rates
| Tax Type | Rate / Status |
|---|---|
| Income Tax | 4.05% (flat) |
| No Income Tax | No |
| Sales Tax | 6.0% |
| No Sales Tax | No |
| Corporate Tax | 6.0% |
| Property Tax Rank | #39 nationally (1=highest) |
| Overall Tax Burden Rank | #23 nationally (1=highest) |
Political Context
Michigan Democrats restored pension income deductions after Republicans had eliminated them in 2011. Proposal A property tax structure creates inequities between longtime homeowners (low taxes) and new buyers (market rates). Detroit had the highest property taxes of any major city, complicated by blight and vacant properties.