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The Michigan Department of Treasury announced a return to the 4.25% income tax rate for individuals and fiduciaries for the 2024 tax year.
The tax rate is 4.25% and taxpayers receive a personal exemption of $5,400 per dependent in TY 2023 and is estimated to be $5,600 in TY 2024.
Standard deduction 2024 (taxes filed 2025) In 2024, the standard deduction is $14,600 for single filers and those married filing separately, $29,200 for those married filing jointly, and $21,900 for heads of household. The 2024 standard deduction applies to tax returns filed in 2025.
If your adjusted gross income (AGI) from your federal 1040 is greater than your Michigan personal exemption allowance ($5,400 in 2023), then you should complete an MI-1040 and all applicable Michigan forms.
This exemption has become known informally as the small taxpayers exemption. The exemption is only for commercial and industrial personal property. The small taxpayers exemption was expanded effective for 2023. The $80,000 true cash value limit for the exemption was increased to $180,000 for 2023.
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*ing to the State of Michigan Uniform City Income Tax Ordinance, the following payments and benefits received by any person are not subject to the tax: Gifts and bequests. Proceeds of insurance, annuities, pensions and retirement benefits.
AN ACT to meet deficiencies in state funds by providing for the imposition, levy, computation, collection, assessment, reporting, payment, and enforcement by lien and otherwise of taxes on or measured by net income and on certain commercial, business, and financial activities; to prescribe the manner and time of making
MI-W4 Withholding Exemption Certificate 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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