Tax Data, Charts, and Maps
Michigan
The Facts on Michigan's Tax Climate
Here are some basic facts on Michigan's tax system and how it compares to other states:
Tax Freedom Day Arrives on April 10 in Michigan
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2009, Michigan taxpayers had to work until April 10 to pay their total tax bill, ranking it 24th in the nation. That's three days earlier than national Tax Freedom Day (April 13). The Tax Freedom Days of neighboring states are: Indiana, April 8 (ranked 28th nationally); Ohio, April 11 (ranked 21st nationally); and Wisconsin, April 13 (ranked 12th nationally).
Full study of Tax Freedom Day, nationwide and in each state
Michigan's State/Local Tax Burden Below National Average
Estimated at 9.4% of income, Michigan's state/local tax burden percentage ranks 27th highest nationally, below the national average of 9.7%. Michigan taxpayers pay $3,694 per capita in state and local taxes.
Michigan's State and Local Tax Burdens, 1977-Present
Other States' State/Local Tax Burdens
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2008
Michigan's 2009 Business Tax Climate Ranks 20th
Michigan ranks 20th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: Indiana (14th), Ohio (47th), and Wisconsin (38th).
50-State Comparison of Business Tax Climates (data only)
2009 State Business Tax Climate Index, Sixth Edition (full study)
Michigan's Individual Income Tax System
Michigan's personal income tax system consists of a simple 4.35% tax on an individual's federal adjusted gross income (with some modifications). Among states levying individual income taxes, Michigan's flat tax rate is 38th highest. Michigan's 2006 individual income tax collections were $663 per person, which ranked 34th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Michigan's Corporate Income Tax System
Michigan levies a Single Business Tax (SBT), which is a modified value-added tax (VAT). The rate is 4.95% and there is an additional modified gross receipts tax at a rate of .8%. In 2007, state-level corporate tax collections (excluding local taxes) were $177 per capita, ranking it 19th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household
50-State Table of State Corporate Income Tax Collections Per Capita
Michigan Levies Sales Tax above National Median; Cigarette Tax among Highest in the Nation
Michigan levies a 6% general sales or use tax on consumers, above the national median of 5.5 percent State and local governments combined collected approximately $800 per capita in sales taxes in 2006, which ranks 30th highest nationally. Michigan's gasoline tax stands at 30.5 cents per gallon, ranking 13th highest nationally. Additionally, Michigan's 6% general sales tax is levied on the sale of gasoline purchases. Michigan's cigarette tax stands at $2.00 per pack of twenty, which ranks 6th highest nationally. The sales tax was adopted in 1933, the gasoline tax in 1925 and the cigarette tax in 1947.
50-State Table of Sales and Excise Tax Rates
50-State Table of State and Local General Sales Tax Collections Per Capita and Per Household
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita
Michigan Property Taxes
Michigan is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. Michigan's localities collected $1,116.73 per capita in property taxes in fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, Michigan collected $221.70 per capita during FY 2006. That brings its combined state/local property tax collections to $1,338.44 per capita, ranking 15th highest nationally.
State property tax collections per capita by state
Federal Tax Burdens and Expenditures: Michigan is a Donor State
Michigan taxpayers receive less federal funding per dollar of federal taxes paid than the average state. Per dollar of federal tax collected in 2005, Michigan citizens received approximately $0.92 in the way of federal spending. This ranks the state 37th nationally and represents a rise from 1995, when Michigan received $0.77 per dollar of federal taxes paid (ranked 45nd nationally). Neighboring states and the amount of federal spending they received per dollar of federal taxation paid were as follows: Indiana ($1.05), Ohio ($1.05), and Wisconsin ($0.86).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state
Tax Data from The Tax Foundation
- State Individual Income Tax Rates, 2000-2009, May 15, 2009
- Tax Freedom Day by State, 2009, March 31, 2009
- Tax Freedom Day and Tax Burden, 1900-2009, March 31, 2009
- State Debt Per Capita and as a Percentage of State GDP, Fiscal Year 2007 , February 10, 2009
- State and Local Debt Outstanding Per Capita, Fiscal Year 2006 , February 7, 2009
- State Business Tax Climate Index-- Unemployment Insurance Tax Index, 2009, February 5, 2009
- State Business Tax Climate Index-- Corporate Tax Index, 2009, February 5, 2009
- State Business Tax Climate Index-- Sales Tax Index, 2009, February 5, 2009
- State Business Tax Climate Index--Individual Income Tax Index, 2009 , February 5, 2009
- State Business Tax Climate Index--Property Tax Index, 2009 , February 5, 2009
- State General Sales Tax Collections Per Capita, Fiscal Year 2007* , February 5, 2009
- State and Local Corporate Income Tax Collections Per Capita and Per Household, Fiscal Year 2006 , February 5, 2009
- State and Local Individual Income Tax Collections Per Capita and Per Household, Fiscal Year 2004-2006 , February 5, 2009
- State Selective Sales Tax Collections Per Capita, Fiscal Year 2007 , February 5, 2009
- Income Per Capita by State, Fiscal Year 2008 , February 5, 2009
- State Tax Collections Per Capita, Fiscal Year 2007 , February 5, 2009
- State Surplus or Deficit Per Capita, Fiscal Year 2007 , February 5, 2009
- State Spending Per Capita, Fiscal Year 2007 , February 5, 2009
- State Revenues Per Capita, Fiscal Year 2007 , February 5, 2009
- State Individual Income Tax Collections Per Capita, Fiscal Year 2007 , February 5, 2009
- State Corporate Income Tax Collections Per Capita and Per Household, Fiscal Year 2004-2007 , February 5, 2009
- State and Local Property Tax Collections Per Household and Per Capita by State, Fiscal Year 2006, February 5, 2009
- State Sales, Gasoline, Cigarette, and Alcohol Tax Rates by State, 2000-2009, January 28, 2009
- State Lottery Sales Per Capita, Fiscal Year 2007 , January 22, 2009
- Lottery Revenue as a Percentage of Own-Source Revenue by State, Fiscal Year 2007 , January 22, 2009
- Implicit Tax Rates on State Lottery Sales by State, Fiscal Year 2007 , January 22, 2009
- State Corporate Income Tax Rates, 2000-2009, January 12, 2009
- Map: Property Taxes on Owner-Occupied Housing by State, December 18, 2008
- Property Tax on Owner-Occupied Housing, by County, Ranked by Property Taxes Paid*, 2005-2007 Average , December 12, 2008
- Property Tax on Owner-Occupied Housing, by County, Ranked by Property Taxes as a Percentage of Home Value*, 2005-2007 Average , December 12, 2008
- Map: Combined State and Local Sales Tax Rates, 2008, November 30, 2008
- Map: State Excise Tax Rates on Beer, 2008, November 30, 2008
- State Estate and Gift Tax Collections, by State and Per Capita, Fiscal Year 2007 , October 31, 2008
- State Business Tax Climate Index Rankings, 2006 - 2009 , October 30, 2008
- Property Taxes on Owner-Occupied Housing, by County, 2007, Ranked by Property Taxes Paid, September 23, 2008
- Property Taxes on Owner-Occupied Housing by State, 2004-2007, September 23, 2008
- Property Taxes on Owner-Occupied Housing by County, 2007, Ranked by Taxes as Percentage of Home Value, September 23, 2008
- Local Property Tax Collections Per Capita and Per Household, Fiscal Year 2006 , August 25, 2008
- National and State Corporate Income Tax Rates, U.S. States and OECD Countries, 2008 , August 13, 2008
- Michigan's State and Local Tax Burden, 1977-2008, August 7, 2008
- State and Local Tax Burdens: All States, One Year, 1977-2008, August 7, 2008
- State and Local Tax Burdens: All Years, One State, 1977-2008, August 7, 2008
- Summary of Federal Individual Income Tax Data by State, 2006 , August 1, 2008
- State and Local General Sales and Gross Receipts Tax Collections Per Capita and Per Household, Fiscal Year 2006 , July 20, 2008
- State and Local Tax Collections Per Capita and Per Household, Fiscal Year 2006 , July 20, 2008
- State and Local General Sales Tax Collections Per Capita and Per Household, Fiscal Year 2006 , July 20, 2008
- State and Local Revenues Per Capita and Per Household, Fiscal Year 2006 , July 20, 2008
- State Property Tax Collections Per Capita and Per Household, Fiscal Year 2006 , July 20, 2008
- Local Wage, Income, and Occupational Privilege Taxes, 2008, July 15, 2008
- State Government General Revenue* by Source, Fiscal Year 2006 , June 4, 2008
- State and Local Spending Per Capita and Per Household, Fiscal Year 2006 , June 4, 2008
- State General Sales Tax Collections Per Capita and Per Household, Fiscal Year 2006 , June 3, 2008
- Local Government General Revenue by Source, Fiscal Year 2006 , June 3, 2008
- Tax Freedom Day by State, 1970-2009, March 26, 2008
- Links to State Individual Income Tax Forms, February 15, 2008
- State Revenues by Source, 1902-2005, February 3, 2008
- Corporate Tax Burden by Metropolitan Statistical Area (MSA), 2005 , October 24, 2007
- Corporate Income Taxes Paid by Congressional District, October 24, 2007
- Federal Taxes Paid vs. Federal Spending Received by State, 1981-2005 , October 19, 2007
- Federal Spending Received Per Dollar of Taxes Paid by State, 2005, October 9, 2007
- Itemization Rates by State, 2005, July 24, 2007
- General Sales Tax Collections by State, Fiscal Year 2006, June 28, 2007
- State and Local Debt Per Capita, 2005, June 28, 2007
- Toll Revenue vs. Motor Fuel Taxes by State, 2005, June 11, 2007
- State and Local Government General Revenue by Source, 2005, June 7, 2007
- State Motor Fuel Tax Collections by State, 2006, June 7, 2007
- Change in Per Capita State and Local Property Taxes from 2000 to 2005, May 15, 2007
- Federal Tax Burden by U.S. Congressional District, 2004, March 22, 2007
- Federal Tax Burden by County, 2004, March 22, 2007
- Federal Tax Burden by Major City Area (MSA), 2004, March 22, 2007
- Public Education Revenue by State and Source, Fiscal Year 2004, October 20, 2006
- Public Education Revenue by County and Source, Fiscal Year 2004, October 16, 2006
- Dates of Adoption of Major State Taxes, January 1, 2005
- State Tax Collections and Distribution by Source, FY2002, December 31, 2002
- State Tax Revenue Growth Compared to Income Growth by State, 1992-2002, December 21, 2002
Maps
- Map: State Cigarette Tax Rates, 2009, January 27, 2009