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MICHIGAN · TAXES

Michigan Taxes

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Michigan statewide rule

Michigan's sales tax is 6% of the gross proceeds of retail sales of tangible personal property (MCL 205.52(1)). The 6% also applies to the transmission and distribution of electricity sold to the user, prepaid phone cards, and conditional or installment sales where title passes later (MCL 205.52(2)). The rate is fixed by the Michigan Constitution: the Legislature may impose up to 4%, plus an additional 2% on sales and use since May 1, 1994 that goes to the state school aid fund (Mich. Const. art. IX §8). A companion use tax applies to goods bought outside Michigan for use in the state. Groceries are exempt — see the grocery tax rule.

§ legislature.mi.gov
Verified Nov 13, 2026Reviewed
What the official source says
“an annual tax for the privilege of engaging in that business equal to 6% of the gross proceeds of the business, plus the penalty and interest if applicable as provided by law”

Read on Nov 13, 2026 from legislature.mi.gov.

Checked once · Nov 13, 2026

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Every Taxes rule LawLert has for Michigan

Each rule below is the full statewide entry, with the official source it rests on and the date it was last checked.

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Michigan has a flat individual income tax of 4.25% on taxable income for the 2026 tax year (MCL 206.51(1)(b)). Since 2023 the law can lower the rate for a single tax year when general fund revenue grows faster than inflation (MCL 206.51(1)(c)); for 2026 the Department of Treasury determined the conditions were not met — general fund revenue fell 1.56% in fiscal year 2025 while inflation was 2.70% — so the rate in effect under state law for 2026 stays at 4.25%. The rate is set again each year from the prior fiscal year's figures.

§ legislature.mi.govVerified Nov 13, 2026Reviewed
What the official source says
“Except as otherwise provided under subdivision (c), on and after October 1, 2012, 4.25%.”

Read on Nov 13, 2026 from legislature.mi.gov.

Checked once · Nov 13, 2026

Conditional

Michigan's state motor fuel tax is $0.524 per gallon (52.4 cents) on gasoline, on diesel fuel and on alternative fuel (including LPG, per gallon or gallon equivalent), effective January 1, 2026, under Treasury's inflation-adjusted fuel tax rate notice of January 2026. No gas-tax suspension is in effect in Michigan. The 18.4-cent federal gasoline tax is extra.

§ michigan.govVerified Nov 11, 2026Reviewed
What the official source says
“Tax Rates Effective January 1, 2026 — January 2026: Notice Concerning Inflation Adjusted Fuel Tax Rate — Gasoline $.524 per gallon; Diesel Fuel $.524 per gallon”

Read on Nov 11, 2026 from michigan.gov.

Checked once · Nov 11, 2026

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No sales-tax holiday.

§ michigan.govVerified Jul 30, 2026Reviewed

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Michigan has no statewide property tax rate: each bill is the parcel's taxable value multiplied by the millage rates set by local units (county, city or township, schools and others). Property is assessed at 50% of its true cash value (MCL 211.27a(1), under Mich. Const. art. IX §3). Under Proposal A, a parcel's taxable value can rise each year by no more than the lesser of 5% or the rate of inflation, plus additions, and never above its state equalized value (§211.27a(2)). When the property is sold or otherwise transferred, the cap comes off: for the year after the transfer, taxable value resets to the full state equalized value (§211.27a(3)), so a buyer's tax bill can be much higher than the seller's.

§ legislature.mi.govVerified Nov 13, 2026Reviewed
What the official source says
“Upon a transfer of ownership of property after 1994, the property's taxable value for the calendar year following the year of the transfer is the property's state equalized valuation for the calendar year following the transfer.”

Read on Nov 13, 2026 from legislature.mi.gov.

Checked once · Nov 13, 2026

Permitted

Groceries are not taxed in Michigan. The General Sales Tax Act exempts sales of "food or food ingredients, except prepared food intended for immediate human consumption" (MCL 205.54g(1)(a)), so prepared food — such as restaurant meals and hot deli items — is taxed at the 6% sales tax rate. The same subsection exempts prescription drugs and over-the-counter drugs dispensed by prescription. Food and other items bought with federal food stamp (SNAP) benefits are also exempt (MCL 205.54g(1)(c)), as is the deposit on returnable beverage containers (MCL 205.54g(1)(b)).

§ legislature.mi.govVerified Nov 13, 2026Reviewed
What the official source says
“Sales of drugs for human use that can only be legally dispensed by prescription, over-the-counter drugs for human use that are legally dispensed by prescription, or food or food ingredients, except prepared food intended for immediate human consumption.”

Read on Nov 13, 2026 from legislature.mi.gov.

Checked once · Nov 13, 2026

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