Michigan taxes

Michigan taxes personal income at a flat 4.25%, with no standard deduction but a $5,800 exemption for each person on the return. A sole proprietor owes no separate business tax. An LLC pays a $25 annual statement fee. Partnerships and S corporations are not taxed at the business level unless they choose to be. C corporations pay 6% corporate income tax, but none at all under $350,000 of Michigan gross receipts.

Personal income tax

Michigan residents file Form MI-1040, which must be postmarked by April 15, 2026. There is no automatic extension. Michigan gives you more time only if you send a copy of your federal extension or file its own Form 4, and any tax you owe is still due April 15, 2026.

The tax is a flat 4.25% of taxable income. There is no standard or itemized deduction. Instead you get a $5,800 exemption for yourself, your spouse and each dependent, and it does not shrink at higher incomes.

Social Security is not taxed, and military and railroad retirement are exempt in full. Other pensions depend on your birth year, or the older spouse's on a joint return. For 2025, people born 1946 through 1966 can subtract up to $49,423 single or $98,846 joint, which is 75% of the $65,897 and $131,794 limits for people born before 1946. Detroit and about twenty other cities charge their own income tax on a separate city return.

Return

Form MI-1040

Due date

April 15, 2026, with no automatic extension

Rate

4.25% of all taxable income

Deduction

None. Michigan has no standard or itemized deduction

Personal exemption

$5,800 each for you, your spouse and every dependent, at any income

Special exemption

$3,400 more for each person who is deaf, blind, paralyzed, or totally and permanently disabled

Not taxed

Social Security, and military and railroad retirement

Retirement subtraction, born before 1946

Public pensions in full, plus private pensions up to $65,897 single or $131,794 joint

Retirement subtraction, born 1946 to 1966

Up to $49,423 single or $98,846 joint

Homestead property tax credit

Up to $1,900, refundable, for renters as well as owners

Sole proprietor

A sole proprietor with no LLC files nothing with Michigan for the business and pays no fee. The annual statement is only for registered entities.

Your business profit is taxed on your own Form MI-1040, at 4.25%. Forming an LLC would start the $25 yearly fee.

Single-member LLC

Every Michigan LLC files an annual statement with the LARA Corporations Division and pays $25, whatever the business earned. It is due February 15, before most tax deadlines. Filing late adds $50.

An LLC formed after September 30 does not file on the February 15 right after it forms. The LLC's profit is taxed on your own Form MI-1040.

Partnership

Michigan does not tax a partnership's profit at the business level. The profit passes through to the partners, who report it on their own returns.

A partnership can choose to pay Michigan's flow-through entity tax instead. It exists to get around the federal cap on deducting state taxes, and it changes the partners' own returns too. It is a choice, not a duty, and it cannot be undone for the years it covers. Once chosen, Form 5772 is due by the last day of the third month after the year ends, even if the tax was already paid in full.

S corporation

Michigan does not tax an S corporation's profit at the business level. The profit passes through to the shareholders, who report it on their own returns.

An S corporation can choose to pay Michigan's flow-through entity tax instead, to get around the federal cap on deducting state taxes. It is a choice, not a duty, and it cannot be undone for the years it covers. Once chosen, Form 5772 is due by the last day of the third month after the year ends, even if the tax was already paid in full.

C corporation

A C corporation files a Michigan corporate income tax return and pays 6% of the income apportioned to Michigan. A corporation selling into other states counts only its Michigan share, measured by Michigan sales over total sales.

The tax is zero, and no return is required, if Michigan gross receipts are under $350,000 or the tax comes to $100 or less. A qualifying small corporation can use the Small Business Alternative Credit to pay 1.8% of adjusted business income instead.

Return

Michigan corporate income tax return

Corporate income tax

6% of Michigan income

No tax and no return

Under $350,000 of Michigan gross receipts, or a tax of $100 or less

Multi-state profit

Michigan sales over total sales

Small Business Alternative Credit

1.8% of adjusted business income, for corporations that qualify

Estimate your state tax

Pick your business type and enter this year's numbers to see the state business tax Michigan charges. It assumes all your sales are in Michigan.

An estimate for planning, not tax advice.

Sources

• Michigan MI-1040 Book, 2025
• michigan.gov Flow-Through Entity Tax Frequently Asked Questions
• michigan.gov Instructions for Form 5772, Michigan Flow-Through Entity Tax Annual Return (TY2025)
• michigan.gov Corporate Income Tax
• michigan.gov Form 4891, 2025 Michigan Corporate Income Tax Annual Return: lines 9a to 9g, 38 and 41

Last reviewed August 2026.