income tax

Michigan’s income tax rate could drop by a fraction of a percentage point under a bill passed in the state House of Representatives Tuesday.

Michigan residents could see a slight income tax cut under a bill that advanced out of the state House Finance Committee Tuesday.The bill would lower the tax rate from 4.25% to 4.05%. That’s what it was in 2023, when a law requiring an automatic tax cut when state revenue meets certain benchmarks was triggered.

A reduction last year in the state income tax rate was temporary, according to a unanimous ruling Thursday by a three-judge Michigan Court of Appeals panel.

Michigan's income tax rate is dropping by 0.2 percentage points next year. The state treasury department says it will save the average Michigan family about $50.

The opinion’s release comes as the state is preparing to release its annual financial report, which is widely expected to show a windfall well above inflation.

"Many Detroiters were leaving money on the table," said Priscilla Perkins, the President and CEO of the Accounting Aid Society.

Governor Gretchen Whitmer vetoed a bill Friday that was sent to her by the GOP-controlled Legislature to reduce the state’s income tax rate.

The governor called for repealing the state’s pension tax and increasing the earned income tax credit that helps low- and moderate-income workers. Meanwhile, republicans countered with a call for reducing income taxes for all individuals and corporations.

Governor Gretchen Whitmer’s administration wants to give an extra $70 million to cities in Michigan hurting from a decline in income tax revenues.A total…

Fair Tax Michigan is a self-proclaimed grassroots coalition hoping to add a graduated income tax proposal to the ballot this fall.The group submitted…