Michigan taxes — property, income, sales, retirement

Home·Tax overview·Michigan

Property tax, income tax, sales tax, and retirement-income treatment in Michigan. Quick read for movers, retirees, and remote workers.

Flat 4.25% income tax. Property tax above average. SS untaxed; partial pension treatment by birth year.
Effective property tax
1.38%
of home value/yr
Income tax (top rate)
4.25%
Sales tax (state)
6.00%
local adds more
SS taxed by state?
No

Property tax

Michigan’s effective property tax rate is approximately 1.38% of assessed home value per year. On a $350,000 home that’s about $4,829/yr. Rates vary by county and municipality — this is a state-wide average.

Income tax

Top marginal rate: 4.25%. Brackets vary by income. For wage earners, the effective rate depends on filing status, deductions, and credits.

Sales tax

State base rate: 6.00%. Local municipal and county additions can raise the combined rate by 1-4 percentage points.

Retirement income

Social Security: Not taxed by state. Pensions & 401(k) withdrawals: Partial exclusion / credit available.

Top cities in Michigan

Detroit · pop 645,705 · momentum 49

Grand Rapids · pop 200,117 · momentum 69

Warren · pop 137,686 · momentum 68

Sterling Heights · pop 134,342 · momentum 68

Ann Arbor · pop 122,925 · momentum 64

Lansing · pop 114,336 · momentum 71

Compare to other states: All 50 state tax overviews · All Michigan cities · Best Michigan cities for retirees

Sources: Tax Foundation effective property tax rankings, state DOR publications, AARP retirement tax guide. 2024/2025 representative figures — verify with a CPA for your specific situation.