Michigan tax burden — broken down.
Michigan’s combined tax burden (income + property + sales) lands at 11.87% on our composite — ranking #20 of 51 jurisdictions. The top marginal individual income tax rate is 4.25%.
Michigan burden, broken into 3 components
| Component | Michigan rate | National median |
|---|---|---|
| Top marginal income | 4.25% | ~5.30% |
| Effective property | 1.62% | ~1.07% |
| State sales tax | 6.00% | ~5.50% |
| Combined composite | 11.87% | ~11.87% |
National medians from CalcFi’s 51-state composite. Top marginal is the headline single-filer rate, NOT the effective rate most households actually pay.
Retirement + Social Security in Michigan
Michigan taxes most retirement income (pensions, IRA / 401(k) distributions). Social Security benefits are NOT taxed by Michigan. Federal taxation of these income sources is unchanged regardless of state.
How Michigan compares
Of all 51 US jurisdictions ranked by combined burden composite, Michigan sits at #20. That places Michigan in the middle of the pack — burden is moderate without being a particular outlier in either direction. For the live cross-state heat map, see the interactive tax burden map.
Michigan metros — local tax overlay
State rates are uniform across Michigan— but local income, property, and sales taxes vary. Click any metro to run the full income tax calculator pre-populated with that city’s local layer.
- Detroitproperty 1.60% · pop 4.4Mmedian $57,400 →
- Grand Rapidsproperty 1.60% · pop 1.1Mmedian $65,800 →
- Lansingproperty 1.60% · pop 0.5Mmedian $55,400 →
- Ann Arborproperty 1.60% · pop 0.4Mmedian $78,600 →
- Flintproperty 1.70% · pop 0.4Mmedian $41,400 →
- Kalamazooproperty 1.80% · pop 0.3Mmedian $50,200 →
More Michigan metros coming as we expand city coverage.
Michigan tax — common questions
What is the Michigan top marginal income tax rate in 2025?
Michigan's top marginal individual income tax rate is 4.25% on the highest bracket.
What is the Michigan effective property tax rate?
Michigan's statewide effective property tax rate is 1.62% of home value (annual). On a $400,000 home that's roughly $6,480/yr. Local variation can be ±0.5pp.
Does Michigan tax retirement income or Social Security?
Michigan taxes most retirement income, and does NOT tax Social Security benefits.
Are there any Michigan-specific tax quirks I should know about?
Michigan property taxes are high (1.38% effective) and uniquely use a "taxable value" cap that resets to State Equalized Value at sale — buyers often see 30–50% tax bill jumps the year after closing.
Reviewed by CalcFi Editorial · Source: Tax Foundation State Individual Income Tax Rates (Jan 2025). Last verified 2026-04-19. Methodology at /about/editorial.