Michigan Income Tax Rate Returns to 4.25% in the 2024 Tax Year

The Michigan Department of Treasury announced a return to the 4.25% income tax rate for individuals and fiduciaries for the 2024 tax year.

A law passed in 2015 by the Michigan legislature requires a decrease in the state’s individual income tax rate when general fund revenue grows by a higher percentage than the inflation rate for the same period. That led to the income tax rate falling from 4.25% to 4.05% in 2023. Michiganders will see the 2023 rate adjustment in the form of less total tax when they file their 2023 state income taxes.

State officials have determined that the conditions requiring a formulary reduction to the rate for 2024 have not been met; therefore, the state income tax rate for individuals and trusts will return to 4.25%.

Read the notice published by the Michigan Department of Treasury here.