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Sunday, May 5, 2024

Michigan residents pay over 9% in income tax, 31st highest in the nation

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Michigan residents pay 9.1% on average in state income tax each year. | stock photo

Michigan residents pay 9.1% on average in state income tax each year. | stock photo

Michigan residents pay the 31st highest income per capita tax to the state at 9.1%, The Center Square reported. 

Michigan residents pay $1,005 per capita in annual income taxes. Additionally, they pay $1,416 in property taxes and $925 in general sales tax collection per year, according to The Center Square.

The average income taxes Americans pay per year is $5,000, which is equivalent to 9.8%. The website didn't include federal taxes in this analysis. 

Property taxes are the biggest portion of state and local government revenues throughout the country, The Center Square reported. States like Michigan with a higher income tax rate take in more state and local levies. The higher the property taxes, the more state and local levies states take in. 

Seven states -- Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming -- don't have an income tax, which resulted in lower tax burdens in those states. 

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