Michigan income tax rates are currently 4.05% — at or below the national average of 5.0%. State income tax is one of the largest deductions from your paycheck after federal tax. Data as of January 2026.
State income tax top marginal rate. Source: Tax Foundation State Income Tax Data.
ℹ️ Public Data Data sourced from Tax Foundation State Income Tax Data. Last updated January 2026.
| Metric | Michigan | National Avg |
|---|---|---|
| Cost of Living | Rank #30 / 50 | Rank #25 |
| Estate Planning Costs | $1,000-$2,500 | $1,000-$3,000 |
| Financial Advisor Costs | $175-$275/hr | $200-$300/hr |
| Income Tax Rates | 4.05% | 5.0% |
| Mortgage Rates | 4.95% | 5.0% |
| Savings Rates | 1.20% APY | 1.2% APY |
| Tax Preparation Costs | $150–$350 | $220 |
Data as of January 2026. Sources: Freddie Mac, FDIC, Tax Foundation, MERIC.
| State | Income Tax Rates |
|---|---|
| Alabama | 2.50% |
| Alaska | No income tax |
| Arizona | 2.59% |
| Arkansas | 4.70% |
| California | 7.25% |
| Colorado | 4.63% |
| Connecticut | 5.00% |
| Delaware | No income tax |
| Florida | No income tax |
| Georgia | 5.75% |
| Hawaii | 7.80% |
| Idaho | 6.00% |
| Illinois | 4.95% |
| Indiana | 3.15% |
| Iowa | 6.00% |
| Kansas | 5.70% |
| Kentucky | 5.00% |
| Louisiana | 4.25% |
| Maine | 7.15% |
| Maryland | 5.75% |
| Massachusetts | 5.00% |
| → Michigan | 4.05% |
| Minnesota | 9.85% |
| Mississippi | 5.00% |
| Missouri | 6.00% |
| Montana | 6.75% |
| Nebraska | 6.84% |
| Nevada | No income tax |
| New Hampshire | No income tax |
| New Jersey | 10.75% |
| New Mexico | 5.90% |
| New York | 10.90% |
| North Carolina | 5.25% |
| North Dakota | 2.90% |
| Ohio | 3.99% |
| Oklahoma | 5.00% |
| Oregon | 9.90% |
| Pennsylvania | 3.07% |
| Rhode Island | 5.99% |
| South Carolina | 7.00% |
| South Dakota | No income tax |
| Tennessee | No income tax |
| Texas | No income tax |
| Utah | 4.85% |
| Vermont | 8.75% |
| Virginia | 5.75% |
| Washington | No income tax |
| West Virginia | 6.50% |
| Wisconsin | 7.65% |
| Wyoming | No income tax |
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