Michigan Business Tax Information
Category
Tax Rate
Detailed Information
Category
Personal Income Tax
Tax Rate
4.25%
Detailed Information
Michigan’s personal income tax system consists of a flat rate of 4.25% of an individual's or household's income
Category
Corporate Income Tax
Tax Rate
6%
Detailed Information
Michigan’s corporate income tax system consists of a flat rate of 6% of taxable income of firms structured as C corporations.
Category
Sales and Use Taxes
Tax Rate
6%
Detailed Information
Michigan levies a 6% general sales and use tax on purchases by consumers on tangible goods. Businesses pay the same 6% sales/use tax rate when purchasing consumer goods.
Category
Personal Property Tax
Tax Rate
Phased Out for manufacturing equipment
Detailed Information
Michigan began phasing out its Personal Property Tax (PPT) for most businesses in 2014. Timing of the phase out depended on the value of the personal property and when it was purchased. All first-owner purchases after 2012 became 100% exempt beginning 2016.
Category
State Essential Services Assessment
Tax Rate
0.24%-0.09% (declining over time)
Detailed Information
Since January 1, 2016, Michigan has levied the State Essential Services Assessment (SESA) on eligible manufacturing personal property that is exempt from the personal property tax. Funds support local police, fire, ambulance and jail services. The assessment is calculated on the property's acquisition cost at a rate that declines as the property ages: 2.4 mills for property acquired 1–5 years earlier, 1.25 mills for 6–10 years and 0.9 mills for more than 10 years.