Corporate Income Tax:
Michigan levies a flat 6% corporate income tax on firms structured as C corporations. Income for other business entities flows through to the owners' personal income taxes and is taxed at a flat personal income tax rate of 4.25%.
Sales and Use Tax:
6 percent; no local sales tax allowed; exemptions allowed for purchase of manufacturing equipment, energy used directly in manufacturing and pollution-control equipment.
Both real and personal property are assessed at 50% of current true cash value. The millage rate will depend on the taxing jurisdiction of the business site. Michigan's average non-homestead property tax rate was 49.20 mills, or $49.20 per $1,000, of assessed property. Industrial personal property is exempt from the 24 mills for schools, and commercial personal property is exempt from 12 mills. Inventory, special tooling, and pollution control equipment are exempt from property taxes. Available property tax abatements are negotiated locally. There is a 100% new personal property exemption available in specific communities. Also, 50% abatements for up to 12 years for real and personal property are available to industrial processors and high tech companies. Rehabilitation projects can be abated 100%.
Michigan also has more than 100 sites with tax-free Renaissance Zones, as well as the ability to designate “Renewable Energy Renaissance Zones,” effectively eliminating general property taxes.
Michigan State Contact:
Michigan Economic Development Corporation
Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings. This information was last updated October 2015.