TAX & LICENSE / STATE TAX SYSTEM
State Income Tax
Michigan imposes a flat income tax rate of 4.25 percent. This rate is assessed on the federal adjusted gross income less a $3,100 personal exemption for the taxpayer and the same amount for each dependent. Special credits and other exemptions vary with the taxpayer.
Michigan residents have a number of options in filing their state income tax forms. E-file enables taxpayers to file individual income tax returns—refund and tax due—via computer rather than sending the returns through the mail. Telefiling completes the process via touch-tone telephone dialing for eligible taxpayers. Certain restrictions apply. Using the direct deposit options allows your tax return to be automatically deposited into the account of your choice rather than waiting for a mailed check.
Michigan Sales/Use Tax
Michigan state sales and use taxes are both 6.0 percent. Michigan has no city, local, or county sales tax. The sales tax applies to retail sales of tangible personal property such as clothing, automobiles, furniture, appliances, utilities, transient hotel and motel rooms and other sales at retail. Food, prescription drugs, and services are not subject to this tax.
Residents are required to pay a 6.0 percent use tax on mail order and Internet purchases from out-of-state companies that do not collect Michigan sales or use tax. This includes purchases made while on vacation or while visiting foreign countries. A special entry for calculating and paying Use Tax is included on the Michigan state income tax forms.
City Income Tax
City of Detroit
Finance Department
General Information
313-224-3315
Forms Request
313-224-3322
https://detroitmi.gov/how-do-i/pay-fine-bill-or-tax/income-tax
Detroit has been gradually reducing the income tax burden for residents as well as non-residents who work in the city. The current rate is 2.50 percent, but the rate by 2009 will be 2.00 for residents and 1.00 for non-residents. The city has raised the personal exemption from $600 to $750.
City of Flint
Income Tax Division
810-766-7015
https://www.cityofflint.com/finance/income-tax/
Flint imposes a personal income tax at the rate of 1.0 percent for residents and .50 percent for non-residents who work in the city.
City of Port Huron
810-984-9741
https://www.porthuron.org/
Port Huron imposes a personal income tax at the rate of 1.0 percent for residents and .50 percent for non-residents who work in the city.
Property Taxes
Property taxes are levied at the state and local levels by the state, school districts, cities, counties, townships, and other special jurisdictions. Rates range from $13 to more than $60 per $1,000 valuation depending upon the municipality. Michigan real estate is assessed at 50 percent of the market value. In general, county treasurers handle only delinquent property tax issues. For information or answers to specific questions, contact the assessor in your township or city.
Tax Information Resources
Internal Revenue Service
Information
800-829-1040
Forms Line
800-829-3676
Tele-tax
800-829-4477
www.irs.gov
Michigan Department of Treasury
517-373-3200
https://www.michigan.gov/treasury
Treasury Department Field Offices
Detroit Field Office
Audits
313-456-4340
Collections
313-456-4340
Property Taxes
313-456-4329
Flint Field Office
Audits
810-760-2784
Collections
810-760-2782
Traverse City Field Office
Audits
231-922-5243
Collections
231-922-5244
Property Taxes
231-922-5247
Michigan Department of Treasury
Frequently Requested Numbers
Income Tax Information
800-827-4000
Income Tax Refunds
800-827-4000
Cigarette & Tobacco Tax
517-636-4630
Estate & Inheritance Tax
517-636-4330
Homestead Exemption
800-827-4000
Motor Fuel Tax
517-636-4600
Sales/Use Tax
517-636-4730
