Michigan Income Tax Rate For 2023

Michigan has one individual income tax bracket with a flat rate of 4.05%. Below you will find 2023 Michigan tax brackets and tax rates for all four MI filing statuses. The Michigan tax rate and tax brackets tabulated below are based on income earned between January 1, 2023 through December 31, 2023. Individual taxpayers will submit both their federal tax forms and state tax forms by April 15, 2024.

The 2023 Michigan tax rate decreased from 4.25% last year to 4.05% this year. The tax rate was last changed in 2013 when it was decrease from 4.35% to 4.25% where it remained until 2023. Treasurer Eubanks announced the income tax rate cut for Michigan in March of 2023 after the release of the state annual financial report. Outlook for the 2024 Michigan income tax rate is to remain unchanged at 4.05%.

Michigan Income Tax Calculation For $70,000 In Wages

• Tax Year: 2023
• Filing Status: Single
• Michigan Tax Rate: 4.05%
• Michigan Personal Exemption: $5,400
• Michigan Income Tax Estimate: $2,616
• Michigan Effective Tax Rate: 3.74%

To simplify and standardize the calculation across states, we assume the taxpayer has only income from Wages, salaries, tips, etc Line 1 on federal Form 1040. Michigan MI-1040 begins with federal adjusted gross income, 1040 Line 11. That means we must subtract the personal exemption amount of $5,400 from our 2023 wages. The result is our Michigan taxable income, which we can then multiply by the 2023 Michigan tax rate of 4.05%.

Michigan Income Tax = ( $70,000 - $5,400 ) × 4.05% = $2,616

To calculate the effective income tax rate for the state of Michigan, we simply divide the previously calculated income tax estimate by our initial $70,000 in wages.

Michigan Effective Tax Rate = $2,616 ÷ $70,000 = 3.74%

The actual amount of income tax you will pay in the state of Michigan will vary. Michigan, as with other states, often allow taxpayers to make additions and subtractions to their federal taxable income. Many states also offer credits for families with children, charitable contributions, and environmental initiatives, for example.

Michigan 2023 Income Tax Brackets by Filing Status

Please reference the Michigan tax forms and instructions booklet published by the Michigan Department of Treasury to determine if you owe state income tax or are due a state income tax refund. Michigan tax forms are generally published at the end of each calendar year, which will include any last minute 2023 - 2024 legislative changes to the MI tax rate or tax brackets. The Michigan tax brackets and tax rates calculated on this web page are to be used for illustration purposes only.

Frequently Asked Questions

Which Michigan tax bracket am I in?

In the state of Michigan there is just one personal income tax bracket. Every individual taxpayer is therefore in the same bracket regardless of filing status and amount.

What is the Michigan income tax rate for 2023?

Michigan's 2023 income tax rate is 4.05%.

What is Michigan's marginal tax rate?

The current flat tax rate for Michigan is 4.05%. The Michigan marginal tax rate used in our example calculation above on this page is 4.05%. That is the tax rate applied to each additional dollar of taxable income you earn. Since Michigan is a flat tax rate state, the nominal or official tax rate equals the marginal tax rate.

What is Michigan's effective tax rate?

Michigan's effective tax rate is 3.74%. Effective tax rate equals the total tax paid divided by total taxable income. Find our Michigan tax rate calculations above on this page for more information.

How much state income tax will I pay in Michigan?

The national average adjusted gross income (AGI) reported by the IRS each year is about $70,000. A single Michigan taxpayer with $70,000 in wages would pay approximately $2,616 to the Michigan Department of Treasury. Find our Michigan tax rate calculations above on this page for more information.

Does Michigan have a standard deduction?

No. Michigan does not have a standard deduction for 2023.

Does Michigan have a personal exemption?

Yes. Michigan does have a personal exemption of $5,400 for a single person and $10,800 for a married couple.

Does Michigan have a dependent exemption?

Yes. Michigan does have a dependent exemption of $5,400 per dependent for 2023.

Is Michigan a flat tax state?

Yes. Michigan's state income tax rate is a flat 4.05% of your taxable income. Regardless of your income level, you will pay the same rate. There are nine flat tax rate states in the United States: Colorado, Illinois, Indiana, Kentucky, Massachusetts, Michigan, North Carolina, Pennsylvania, and Utah

Last updated: November 4, 2023

Income Tax Rates