Michigan Business Tax Calculator

Calculate corporate income tax, franchise tax, and gross receipts tax for businesses operating in Michigan.

Why calculating business in Michigan is different

Michigan has a flat income tax system.

State Income Tax
4.05%
Base Sales Tax
6%
State Min Wage
$10.33 / hr
Abbreviation
MI

Michigan Business Interactive Tool

This calculator uses the latest 2026 data for Michigan, including the minimum wage of $10.33 and the specific state income tax rates (4.05%).

Frequently Asked Questions about Michigan Business

What is the corporate tax rate in Michigan?

Corporate tax structures vary. In addition to potential corporate income taxes, businesses in Michigan must also consider unemployment insurance taxes, sales tax collection (6%), and local business licenses.

Do LLCs pay tax in Michigan?

LLCs are typically pass-through entities, meaning profits pass through to the owners' personal tax returns and are taxed at the personal 4.05% rate. However, Michigan may also impose an annual LLC franchise fee.