Competitive Business Costs
Corporate Income Tax - Governor Snyder’s tax reform makes Michigan business taxes simple, fair, and efficient. The new structure taxes C-Corporations at 6% on federal taxable income apportioned to Michigan. Other entities – individuals, partnerships, LLCs, etc. – have income flow to their personal income tax. The personal income tax rate will remain 4.35%, dropping to 4.25% in 2013. The new tax structure is effective January 1, 2012.
Click here for the MEDC's Corporate Income Tax (CIT) Fact Sheet
Click here for information on Certified Credits
Click here for Treasury's FAQ's
Personal Income Tax - Michigan's personal income tax rate is one of the lowest in the nation - a flat 4.35% tax rate that is scheduled to decline to 4.25% in 2013.
Property Taxes - Michigan’s property tax system includes competitive, cost-effective exemptions and abatement programs. Firms receive automatic 24-mill reduction on industrial personal property and automatic 12-mill reduction on commercial personal property. In addition, firms may still apply for tax abatements and property rehabilitation incentives. Full property tax exemptions apply to inventory, special tooling and pollution control equipment.
Sales Taxes - The state sales tax is 6% on sales of tangible goods. No local sales taxes are allowed. Purchases of manufacturing equipment, pollution control equipment, and energy used in the industrial process are fully exempt from sales taxes.
Unemployment Insurance - To protect workers who lose their jobs through no fault of their own, Michigan businesses pay unemployment insurance on the first $9,000 of wages paid to each worker in a calendar year. Established employers may pay as little as 0.06%.
Workers' Compensation - Michigan has a competitive workers' compensation (WC) insurance system. Michigan’s "open competition" system allows market forces to set the WC insurance rates, thus enabling companies to shop among nearly 300 insurance carriers for the best, lowest-cost options. Self-insurance, group self-insurance, deductible plans and other options are available, as well. With such a wide-range of cost-savings opportunities, Michigan businesses can play a significant role in containing or reducing their WC costs. The following information will help you understand and navigate through the WC insurance system.
