Michigan state income tax rate 2027

The statutory rate

Section 51 of the Income Tax Act of 1967 (MCL 206.51) levies the tax at 4.35% from October 1, 2007 and before October 1, 2012 and, "on and after October 1, 2012, 4.25%". That is the rate for 2027 unless the trigger below applies. The Legislature's site showed the compiled laws complete through PA 114 of 2026 when this page was checked.

The trigger that can lower it

Subdivision (c) applies to every tax year beginning on or after January 1, 2023. If general fund/general purpose revenue grew faster than inflation in the prior fiscal year and inflation is positive, the rate is reduced by a formula based on the excess over a capped amount, as determined by the state treasurer and the House and Senate fiscal agencies. In the table Tax Foundation published in February 2026 the rate for 2026 was still 4.25%. This page projects 4.25% for 2027 and lets you override the rate in the box if the Department of Treasury announces a trigger-reduced figure.

Exemptions

Michigan uses a personal exemption rather than a standard deduction. Tax Foundation lists $5,900 for the taxpayer, $11,800 for a couple and $5,900 per dependent for 2026, indexed each year; those are the amounts used here. The Department of Treasury publishes the 2027 amount each fall.

Worked example

Single, $75,000 of wages, one $5,900 exemption: taxable income $69,100 and tax $2,936.75, an effective 3.92% of wages. A couple with $120,000 of wages and two dependents has four exemptions, $23,600, so taxable income is $96,400 and tax is $4,097.00.

Cities add their own tax

Michigan allows cities to levy income taxes. See the Michigan city income tax rates and the Detroit income tax calculator. For net pay use the Michigan paycheck calculator.

Who this is for, and what it does not cover

It is for employees and planners estimating Michigan state income tax on wages for 2027. It does not cover local income taxes, tax credits, retirement or investment income, self-employment tax, federal income tax or payroll taxes, and it does not file or submit anything. The result changes if you enter a different rate, so use the rate box when the state announces a final 2027 figure.

FAQ

What is the Michigan state income tax rate for 2027?

MCL 206.51 sets 4.25% on and after October 1, 2012, subject to a reduction trigger for tax years beginning in 2023 or later. 2027 is projected at 4.25%.

Is Michigan income tax flat?

Yes. One rate applies to taxable income, with no brackets.

How does the Michigan rate trigger work?

If general fund/general purpose revenue rises faster than inflation and inflation is positive, the rate is reduced by a formula that compares the excess revenue with the prior year's income tax collections.

What is the Michigan personal exemption?

Tax Foundation lists $5,900 per person for 2026, including dependents. The amount is indexed annually.

Does Michigan have a standard deduction?

No. Tax Foundation shows none for Michigan and an exemption in its place.

Is this my final 2027 Michigan tax?

No. It is a projection at 4.25% using the 2026 exemption. Credits, retirement subtractions and city taxes are not modelled.

Sources

Retrieved 2026-11-01. Each link was opened and checked against the claim next to it; where a page blocks automated readers a dated archive copy is named.

• MCL 206.51 (Michigan Legislature): The 4.25% rate and the tax-year-2023-onward reduction trigger, read 2026-11-01.
• Tax Foundation: State Individual Income Tax Rates and Brackets, 2026: The $5,900 personal exemption for 2026 and the 4.25% rate for the year.