A tax is a charge or levy of money made by a governmental entity (state, local, or federal) against a taxpayer—usually a U.S. citizen or a person living or working in the United States. There are many kinds of taxes, including income tax, capital-gains tax, property tax, franchise tax, gift tax, ad valorem tax, sales tax, use tax, inheritance tax, and estate tax.

In Michigan, as in other states, taxpayers are subject to various types of taxes imposed by state and local governments, as well as the federal government. Income tax is levied on individuals, corporations, and certain other entities, with Michigan having a flat state income tax rate. Capital gains are taxed as income at both the federal and state levels. Property taxes are assessed by local governments (counties, cities, townships, and villages) on real estate and personal property, and the rate can vary depending on the local jurisdiction. Michigan does not have a franchise tax. Gift tax is not imposed at the state level but is a consideration under federal law for transfers of wealth during an individual's lifetime. Ad valorem taxes, which are based on the value of a transaction or property (such as real estate), are common at the local level. Sales tax is collected on most retail transactions, and Michigan also imposes a use tax on goods purchased out of state but used within Michigan. The state does not have an inheritance tax, but there is a federal estate tax that applies to the transfer of the taxable estate of a deceased person, with certain exemptions and rates.