Michigan Treasury Announces 2026 Individual Income Tax Rate

The Michigan Treasury Department announced that the individual and fiduciary income tax rate for the 2026 tax year will remain at 4.25 percent. Under Section 51 of the Michigan Income Tax Act, the rate may be reduced if general fund revenue growth exceeds inflation. Based on the Fiscal Year 2025 Annual Comprehensive Financial Report, general purpose revenue decreased by 1.56 percent while inflation increased by 2.70 percent. Because revenue growth did not exceed inflation, the statutory formula for a rate reduction does not apply. [Mich. Dep’t of Treasury, Individual Income Tax Rate, 04/15/26]

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