Cost of Doing Business

Michigan Taxes

Michigan Business Tax applies to all taxpayers that have business activity in Michigan. Most businesses will be subject to both the business income tax and the modified gross receipts tax.

 

Business income is taxed at a rate of 4.95%

 

Modified gross receipts tax (sales minus purchases from other firms) taxed at a rate of 0.8%

 

The Michigan Business Tax provides tax credits for such business activities as

• Investment tax credit for purchase of capital assets
• Compensation credit for jobs created or retained
• Research and development credit
• 6 mill state education tax exemption on industrial personal property

For more details about the Michigan Business Tax, see www.michigan.gov/taxes/0,1607,7-238-46621---,00.html

 

Michigan’s sales tax is 6%.

 

No tax is levied on inventory.

 

Local taxes

Real and property tax is based on a millage rate (1 mill = $1 per $1000 taxable value) applied to the State Equalized Value of the property. Non-residential property is taxed at the non-homestead rate.  Property taxes for sites in Washtenaw County can be estimated with this property tax calculator: www.michigan.gov/propertytaxestimator

 

No city income tax has been levied anywhere in Washtenaw County

 

Local sales taxes are not allowed anywhere in Michigan