Michigan state taxes at a glance
| Individual income tax | Flat-rate income tax |
|---|---|
| Rate structure | A flat individual income tax rate (4.25% for the 2026 tax year per the Michigan Department of Treasury). The rate can change under a trigger formula; verify the current rate. |
| Tax agency | Michigan Department of Treasury |
| Main individual return | Form MI-1040 |
| Local income taxes | About two dozen Michigan cities, including Detroit, levy a city income tax with separate returns. Some also tax nonresidents who work there. |
| Sales tax | A state sales tax (and use tax) with no local sales taxes. |
| Property tax | Locally administered; Michigan offers a Homestead Property Tax Credit on the state return for eligible homeowners and renters under income limits. |
| Retirement & Social Security | Social Security benefits are not taxed. Michigan’s treatment of other retirement income has been changing in recent years; check Treasury’s current guidance. |
Verify current-year figures: state rates, brackets, credits and filing rules change. Treat this page as a starting orientation and confirm details on the Michigan Department of Treasury website.
How Michigan income tax works
Michigan taxes income at a single flat rate. The Michigan Department of Treasury announced that the rate stays at 4.25% for tax year 2026. State law includes a formula that can temporarily reduce the rate in some years depending on revenue and inflation; in some past years the rate was lowered for one tax year and then restored. Always confirm the current-year rate on Treasury’s site.
Michigan starts from federal adjusted gross income and applies its own additions and subtractions, and it replaces the federal standard deduction with personal exemptions that increase for each dependent. Recent legislation has added temporary state deductions for qualifying tipped income and overtime pay for a limited set of tax years — see the Treasury’s description and our explainer on the federal deductions, since the federal and state rules are separate.
City income taxes are a distinguishing feature. Detroit and a number of other Michigan cities levy a tax on residents, and often a lower rate on nonresidents who work in the city. These returns are separate from the state return and often have their own deadlines; your employer may withhold city tax if you work or live in a taxing city.
Filing your Michigan return and free options
File Form MI-1040 by April 15. Michigan’s Treasury eServices portal lets taxpayers file an individual return online and track refund status, and Treasury describes a free filing option on its website. Confirm what is currently included and who qualifies on the Treasury site, and see our federal free filing hub for the federal side. Many software companies also offer free Michigan e-file for qualifying taxpayers.
Claim the Homestead Property Tax Credit (Form MI-1040CR) if you meet the income and property value limits; renters can claim a portion of rent as property tax. Check the current-year thresholds with Treasury.
For the federal side, see our guides to free federal filing options and the complete guide to filing taxes.
Things Michigan residents often ask about
- City tax: if you live or work in Detroit or another taxing city, you may owe a separate city return.
- Rate formula: the state rate can change from year to year under a trigger; verify.
- Homestead credit: a refundable-style credit with income limits; renters can qualify too.
- Refund status: use Treasury’s online refund tool; see state refund status.
Official Michigan links
- Michigan Treasury: individual income tax
- MiTreasury eServices
- Michigan Treasury: file a return
- Federation of Tax Administrators: State tax agencies
Frequently asked questions
What is the Michigan income tax rate?
4.25% for the 2026 tax year per the Michigan Department of Treasury. The rate can change under a formula, so confirm each year.
Do I pay Detroit city income tax?
Detroit levies a city income tax on residents and a different rate on nonresidents who work in the city. Check the City of Detroit and your employer’s withholding.
Is there free Michigan state filing?
Treasury describes a free online filing option through Treasury eServices; check the site for the current-year details and eligibility.
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.