Michigan Reduces Tax Rate, Updates Withholding Guide (1)

Michigan’s 2023 withholding guide was updated April 4 by the state treasury department following an announcement from the state treasurer that the state’s flat income tax rate would decrease for 2023.

State Treasurer Rachael Eubanks confirmed that the tax rate for 2023 is 4.05%, instead of 4.25%, in a March 29 news release. While state law sets the rate at 4.25%, a statute passed in 2015 allows the income tax rate to be reduced starting in 2023 if state general fund revenue grows by a greater percentage than the rate of inflation in a given year, assuming the rate ...