Taxes

In 2012, Michigan lawmakers overhauled the corporate tax structure and introduced the Michigan Corporate Income Tax (CIT). Key provisions of this reform created a flat 6% net income tax, eliminated the Gross Receipts Tax (GRT), and a broadened tax base by eliminating tax preferences.


Local Taxes

  • Local Sales Tax – N/A
  • Real Property Tax Rates – Varies by local community millage rates

 

 

State Taxes

  • Corporate Income Tax (Applies to C Corporations only) – 6.00%
  • Pass-through entities like S corps, LLCs, partnerships, and sole proprietors pay tax on business income under the personal income tax
  • General Sales Tax – 6.00%
  • Michigan Personal Property Tax Reforms allows a phase-out of business personal property taxes for manufacturers.

For more information please go to: Michigan Corporate Income Tax

Other Factors Affecting the State's Tax and Business Climate

Michigan’s economic recovery has been strong. Several legislative amendments focused on creating an environment to increase investment and job creation. Significant actions include:

  • Right-to-work legislation for Michigan’s private and public sectors went into effect in 2013
  • Phase out of Personal Property Tax

 

State Tax Summary

Tax

Tax Rate

Corporate Income Tax     

6.00%

Personal Income Tax

4.25%

Michigan Property Tax (Industrial Businesses)

Cut by 65%

Michigan Property Taxes (Commercial Businesses)

Cut by 23%

General Sales Tax

6.00% 

Inventory Tax

0%

Turn to Muskegon Area First to learn more about tax abatements and other incentives to help your business grow and prosper. To learn more about tax abatements and incentives, go to:: Incentives

To learn more about Minnesota state taxes, for business and individuals go to:: Michigan Department of Treasury.