Select your state

Taxes

state income tax

Most states levy an income tax on their residents that is in addition to the federal income tax. Laws vary from state to state but in most states the state income tax is a tax on the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities.

There are nine states that do not have a state income tax—including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. But New Hampshire levies a tax on capital gains and Washington state recently enacted a tax on extraordinary profits from the sale of financial assets over $250,000.

In Michigan, residents are subject to a state income tax in addition to the federal income tax. The state income tax applies to the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities. As of the knowledge cutoff in 2023, Michigan has a flat state income tax rate for individuals, meaning that all taxpayers are subject to the same percentage rate regardless of their income level. The state also imposes a corporate income tax with a rate that applies to businesses operating within the state. Unlike the nine states mentioned that do not have a state income tax, Michigan does require residents and businesses to pay state income taxes on their earnings.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Taxes

state income tax

Individual & Family Legal Plan

Articles

Michigan State Code

Michigan State Code

Taxes

state income tax

Articles