Not by much, but the extra tax burden is enough to nudge the state in the wrong direction.Īnd there's more to worry about when we look at property taxes in Michigan. As a result, Michigan's income tax bill for our hypothetical family is a above the national average. Plus, cities can levy additional local income taxes. Now for some bad news: The 4.25% flat rate is higher than what you'll find on middle-class families in most other states. So, shoppers in Michigan can feel pretty good about the overall state and local sales tax burden on them. But local governments don't add any additional tax on sales in the state. There's a 6% state tax on purchases in Michigan, which is a little on the high side as far as state-level sales tax rates go.
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