State Tax in Michigan

The state tax in Michigan is a flat rate of 4.35 per cent of the federal adjusted gross income with modifications. The tax rate is annualized, however, and the rate for 2007 is only 4.01 per cent. There are some cities that impose additional income taxes.

Due Date For Filing Taxes

The due date for state tax in Michigan is April 15th. If the 15th happens to fall on a weekend or holiday, then the due date moves to the next business day.

Who Must File State Taxes

  • If you are filing a federal tax return, you must file a state return.
  • Extensions may be granted for military personnel (and for spouses) who are serving in a combat zone. Another qualifying factor would be being hospitalized for injuries that are a direct result of combat. You may also qualify if you are in a supportive position overseas that takes you into a combat zone. Extensions are granted during time served in the combat zone, plus 180 days after.

Any taxpayer having sincere financial hardship can file a request for waiver of penalties on late payments of income taxes. Tax law states this request must be very detailed and must demonstrate a real and specific reason for the late payment of the income taxes. If the Department deems the application worthy, the penalty for late payment will be waived as long as the taxpayer sticks to the agreed upon payment plan for repayment of the past due income taxes.

Retirees And Tax Law

Michigan tax law states that retirees can exclude some of the pension income if they meet certain eligibility requirements. Deductions may be allowed if the distributions from the retirement plans meets certain qualifications and circumstances. The retirees must have met all of the eligibility requirements of the plan, the benefits must be paid out of a trust fund set up for the retirement account, and the payment must be going directly to the retiree or their surviving spouse. No deductions will be given for any early distributions of retirement funds. No life insurance or annuities will be considered for deductions. Public pensions also do not fall under eligibility for deductions. This includes any pensions received from federal civil service work.

Deductions are limited to a total of $42,240 on a single return and $84,480 on a joint return.


Income taxes may now be filed online and taxpayers can check the status of their refunds online as well.

If you are facing a tax audit, or other tax law issues, consult with a tax attorney in your area to discuss your options.

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