State Tax Info

Calculation of State Individual Income Tax Rate Adjustment for 2024 Tax Year

 Revenue and Inflation Conditions Not Present for a Rate Reduction

LANSING, Mich. – State Treasurer Rachael Eubanks, Senate Fiscal Agency Director Kathryn Summers and House Fiscal Agency Director Mary Ann Cleary today published their calculation about whether an individual income tax rate adjustment is statutorily required for the 2024 tax year.

Upon publication of the state of Michigan’s Annual Comprehensive Financial Report (ACFR) for Fiscal Year 2023 – which ran from Oct. 1, 2022, to Sept. 30, 2023 – the state treasurer and agency directors conducted a state law-required calculation to determine if a rate change was required. The result of that calculation found that the conditions for an individual income tax reduction were not present.

Treasury Administration of Calculation

“State law requires that a very specific calculation be conducted annually following release of the state’s ACFR to determine the individual income tax rate,” said State Treasurer Rachael Eubanks. “As anticipated, we found that the conditions were not present for a rate reduction for the 2024 tax year. The tax rate will remain at 4.25%.”

Under state law, the individual income tax rate may be subject to a formulary reduction if the general fund grew faster than the rate of inflation for the immediately preceding state fiscal year and the inflation rate is positive.

Using data from the state Fiscal Year 2023 ACFR, the general fund was down -8.33% and inflation went up by 5.06%. This means conditions are not present for a rate reduction for the 2024 tax year. (See Table 1.)

Table 1. Individual Income Tax Rate Calculation Data

Fiscal Year

Total General Fund/General
Purpose Revenue

(In Millions)(1)

Consumer Price







Percentage Change



(1) MCL 206.51(1)(c)(ii)
(2) MCL 205.51(10)(b)

The ACFR for Fiscal Year 2023 can be found on the State Budget Office’s website. Additional details about the individual income tax rate calculation can be found in a taxpayer notice issued by the Michigan Department of Treasury.

In 2015, Michigan enacted a law requiring a temporary reduction of the state individual income tax rate if the general fund grew faster than the rate of inflation in any year starting for the 2023 tax year. Because the general fund grew faster than inflation during the state’s 2022 fiscal year, the state individual income tax rate decreased to 4.05% for the 2023 tax year.

February 26, 2024

Contact: Ron Leix, Treasury, 517-335-2167

State Treasury Department Providing Individuals, Businesses Tax Relief due to Federal Disaster Declaration

 Taxpayers in Nine Michigan Counties Can Request Additional Time to File Tax Returns, Pay State Tax Bills

LANSING, Mich. – With the Internal Revenue Service granting tax relief on Feb. 15 after President Biden approved a federal disaster declaration for nine Michigan counites, the Michigan Department of Treasury is providing an opportunity for disaster survivors to obtain state tax relief.

Individual and business taxpayers who reside in Eaton, Ingham, Ionia, Kent, Livingston, Macomb, Monroe, Oakland and Wayne counties can request additional time to file state tax returns and pay state tax bills, with penalties and interest waived. These areas were affected by severe storms, tornadoes and flooding from Aug. 24-26, 2023.

“A natural disaster can be devastating both personally and financially,” State Treasurer Rachael Eubanks said. “By providing tax relief, disaster survivors will have more time to focus on recovering and getting their lives back to a sense of normalcy. Taxpayers should reach out to us to learn more about the process for obtaining this relief.”

Individuals unable to meet filing or payment deadlines due to this disaster should contact Treasury at 517-636-4486. Businesses are asked to call 517-636-6925.

In addition, affected taxpayers may write to Treasury to request disaster-related tax relief. When writing, the following must be included in the correspondence:

  • Name and account number of the individual or business taxpayer.
  • Reason for the relief request.
  • Taxpayer address within one disaster area or address of the tax preparer located in the disaster area.

Taxpayers should send the completed correspondence to the following address:

Michigan Department of Treasury
Attn: Disaster Tax Relief
Lansing, Michigan 48922

Some taxpayers may receive a preliminary assessment notice before a tax relief request is formally received by Treasury. Taxpayers within the disaster area who receive these notices should contact Treasury by phone to resolve.