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Business Taxes

Seeking the advice of an accountant or tax attorney is highly recommended and invaluable in determining your business tax obligations. All businesses are required to pay taxes to the Federal Government and depending upon the type of your business, you might need to register for certain business taxes related to Michigan. For more information visit the State of Michigan website at Michigan Taxes.

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Michigan Corporate Income Tax

Michigan has a Corporate Income Tax that taxes C-Corporations and taxpayers taxed as corporations federally. To find out more visit Michigan's Department of Treasury website by clicking here.

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Michigan Personal Income Tax

One of the lowest personal income tax rates in the nation is here in Michigan. A flat rate of 4.25% is scheduled to decline over the next few years.

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Michigan Property Taxes

In Michigan, property taxes are levied as a millage rate. Property is assessed at 50% of the market value and a mill equals one dollar of the assessed property. Property taxes are assessed on "real property" and "personal property". To read more about Otsego County property taxes and assessments click here. There are abatement programs and cost-effective exemptions available within Michigan's property tax system.

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Real Estate Taxes

On property transferred with a valued of $100.00 or more within Michigan; there is a one-time payment at closing to the state. Rates vary at the county level, to view those fees click here. School Tax in Michigan is part of the millage rate that is calculated into the property taxes.

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Sales Tax

There are no local sales taxes in Michigan and the state sales tax on tangible goods is at a rate of 6%. Some types of industrial equipment are exempt from the sales tax.

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Michigan Employer Taxes

Michigan businesses pay unemployment insurance to protect workers who lose their jobs through no fault of their own. To find out more click here.

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Worker's Compensation

Michigan has a no-fault system that requires an employer to provide wage replacement, medical and rehabilitation benefits to an employee that was injured while on the job. Click here for more information.