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State of Michigan Tax Rate: Income tax withholding rate: 4.25%
Bonuses and other payments of employee compensation made separately from regular payroll payments are subject to Michigan income tax withholding. The withholding amount equals the payment amount multiplied by 4.25 percent (0.0425). Do not make any adjustment for exemptions.
Property Tax Exemption An eligible person must own and occupy his/her home as a principal residence (homestead) and meet poverty income standards. The local Board of Review may interview the applicant in order to determine eligibility, ing to the local guidelines, and will review all applications.
Michigan has a flat income tax system, which means that income earners of all levels pay the same rate: 4.05% of taxable income. That is one of the lowest rates for states with a flat tax. In Michigan, adjusted gross income (which is gross income minus certain deductions) is based on federal adjusted gross income.
The exemption amount is $5,400 per year times the number of personal and dependency exemptions allowed under Part 1 of the Michigan Income Tax Act. An employee may not claim more exemptions on the MI-W4 than can be claimed on the employees Michigan income tax return.
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Bonuses and other payments of employee compensation made separately from regular payroll payments are subject to Michigan income tax withholding. The withholding amount equals the payment amount multiplied by 4.25 percent (0.0425).
Deductions include a total of [1] 9.27% (or $5,979.06) for the federal income tax, [2] 4.25% (or $2,740.74) for the state income tax, [3] 6.20% (or $3,998.26) for the social security tax and [4] 1.45% (or $935.08) for Medicare.
Michigan business tax breakdown Business typeState income taxesUnemployment insurance taxes LLC with C corp election Yes, 6% corporate income tax rate Yes, if you hire employees LLC No Yes, if you hire employees Partnership No Yes, if you hire employees Sole proprietorship No Yes, if you hire employees2 more rows Nov 11, 2023