Michigan Taxes 2025
Complete tax guide and OBBBA calculator for MI residents
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Michigan Tax Overview 2025
State Income Tax
4.25%
Flat rate structure
Combined Sales Tax
6.00%
State 6.00% + Local 0.00%
Avg Property Tax
1.54%
Above average property taxes
💼 Michigan Income Tax 2025
Michigan has a flat income tax rate of 4.25%.
When filing your Michigan state tax return, your income tax liability depends on your taxable income and filing status. Michigan uses a flat income tax structure.
Michigan Income Tax Quick Facts
🛒 Michigan Sales Tax 2025
Michigan's combined average sales tax rate is 6.00%, which includes both state and local components. The state sales tax rate is 6.00%, while local jurisdictions add an average of 0.00%.
Sales Tax Breakdown
💡 Tip: Local sales tax rates vary by city and county. Your actual rate may be higher or lower depending on where you shop.
🏠 Michigan Property Tax 2025
Michigan's average effective property tax rate is 1.54%. Above average property taxes.
Property taxes in Michigan are assessed at the local level by counties and municipalities. Rates can vary significantly between jurisdictions.
Example Annual Property Tax
| Home Value | Est. Annual Tax | Monthly |
|---|---|---|
| $250,000 | $3,850 | $321 |
| $400,000 | $6,160 | $513 |
| $600,000 | $9,240 | $770 |
OBBBA Tax Benefits for Michigan Residents
Michigan residents with higher property taxes benefit from increased SALT cap.
The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, introduced several new federal tax deductions that Michigan residents can claim starting with their 2025 tax returns.
Available OBBBA Deductions for MI Residents:
Calculate Your Michigan Tax Savings
Use our free OBBBA calculator to see exactly how much you could save on your 2025 federal taxes as a Michigan resident.
Calculate My SavingsHow Michigan Compares
| Tax Type | MI Rate | US Average | Comparison |
|---|---|---|---|
| Income Tax (Top Rate) | 4.25% | 5.1% | Varies |
| Sales Tax | 6.00% | 7.12% | Below Avg |
| Property Tax | 1.54% | 1.10% | Above Avg |
Frequently Asked Questions
What is the income tax rate in Michigan?
Michigan has a flat income tax with rates of 4.25%. Michigan has a flat income tax rate of 4.25%.
What is the sales tax in Michigan?
The combined average sales tax rate in Michigan is 6.00%. This includes the state rate of 6.00% plus an average local rate of 0.00%.
How do OBBBA deductions benefit Michigan residents?
Michigan residents with higher property taxes benefit from increased SALT cap. Michigan residents can claim tips, overtime, auto loan interest, SALT, and senior bonus deductions on their federal returns.
When are Michigan taxes due?
For tax year 2025, Michigan state taxes are due on April 15, 2026, the same date as federal taxes. Extensions may be available if you need more time to file.