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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
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.
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.
The Michigan Department of Treasury announced a return to the 4.25% income tax rate for individuals and fiduciaries for the 2024 tax year.
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People also ask

Military pensions, Social Security benefits and railroad retirement benefits continue to be exempt from tax.
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.
Yes, but its complicated. In tax year 2023, Michigan began a four-year phase-out of its retirement income tax. By the 2026 tax year, pensions and income from 401(k) and IRA withdrawals will be fully exempt from state income tax. In the meantime, you may qualify for tax relief depending on your age or occupation.

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