© 2025 Michigan State University Board of Trustees
Public Media from Michigan State University
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

House OKs Income Tax Rate to 3.9% by 2018

Dome of State Capitol building
WKAR file photo

The Michigan House has approved legislation that would drop the state's income tax rate to 3.9% by 2018.The bill passed Thursday by a 97-13 vote would drop to 4.2% on Jan. 1 and go down each year. The annual fiscal year revenue loss is estimated to be about $800 million in six years.
 
Lawmakers recently passed legislation cutting the current income tax rate from 4.35% to 4.25% on Oct. 1, three months earlier than scheduled. That will save average taxpayers about $10 per person.
 
The measure moves on to the Senate.
 
Changes approved last year by Republican Gov. Rick Snyder and the GOP-led Legislature mean individual income taxpayers will pay $1.4 billion more next year based on 2012 income while businesses pay $1.7 billion less.

Local journalism matters—and it’s at risk.


WKAR brings you trusted news, without barriers—no paywalls, no corporate spin. But now, federal funding that helps make it all possible is on the chopping block. Your support is more important than ever. Stand up for independent journalism in mid-Michigan—make your gift today.