Filing Michigan State Taxes

Michigan has a flat rate of 4.35% on federal adjusted gross income for all state residents. There are a few cities in the state of Michigan that charge additional income taxes for various reasons.

tax payers

Sales Tax

The sales tax rate in the state of Michigan is 6%. You do not need to pay any local or city taxes in the state of Michigan. The rate is the same for retail and wholesale purchases of all sizes.

Personal and Real Estate Property Tax

Rather than assessing on the state level, property taxes in Michigan are assessed on the local level. You must file a personal property statement with the township assessor if you possess tangible personal property in Michigan. It is mandatory that you file your taxes by February 20th every year. However, senior citizens, disabled people and farmers can delay the payment of property tax in the state of Michigan. To get more details regarding delayed payment procedure, contact your county treasurer.

If you own your home, you can get a bit of exemption from a part of your local school operating taxes. You need to complete Form 2368 in order to claim an exemption. This exemption does not have an impact on your assessment. In general, your local assessor will modify your taxes on your next property tax bill.

If your home is situated in Michigan and you pay property taxes, you can claim a property tax credit on your personal income tax return. In the state of Michigan, there are income limits on who can get a property tax credit. To get exemption, it is critical that you only have one home; income property or a vacation home is not included as your home. If the income of your family is not that high, you may qualify for the Home Heating Credit. The federal Low Income Home Energy Assistance Program funds the Home Heating credit.

Other Information

• You do not need to pay any inheritance tax in the state of Michigan.
• Similar to other US states, you can check your refund status online in Michigan. Retirees are given some exemption in Michigan with regard to taxes.