Committee Approves of Income Tax Reduction

Liz Gullett

Jan 28, 2022

The Senate Finance Committee reported legislation that would reduce Michigan’s income tax rate. Under the proposal, the state’s personal income tax rate would be reduced from 4.25% to 3.9%. Likewise, the corporate income tax rate would decline from 6% to 3.9%. Both changes would be in effect beginning on January 1, 2022. “In 2007, Michigan’s income tax rate was increased from 3.9% to 4.35% and a promise was made to roll it back to 3.9% by 2015. Now is the time to keep the promise as the people of Michigan have weathered economic and supply chain disasters that have followed the poor unilateral policy decisions, and historic levels of inflation — all while the state is exceeding revenue projections,” said Senate Finance Committee Chair, Senator Jim Runestad (R-White Lake). Additionally, the bill provides a $500 tax credit per child. The bill was sent to the Senate floor for further consideration.

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