Outline of the Michigan Tax System Released

Tax Policy Emerges Modernized, Despite a Contentious Process and Late State Budget

Citizens Research Council of Michigan today released an update to its Outline of the Michigan Tax System, the 39th edition of this popular publication, which serves as a ready reference for policymakers, journalists, researchers, and citizens on Michigan’s often-complicated tax structure.

The outline serves as a ready reference to the 68 taxes authorized for state and local governments in Michigan.  It contains information on each of the 43 state and 25 local taxes effective as of the publication date, including:

— A description of each of the 68 state and local taxes currently levied and historical collections from major taxes.
— A summary of major tax law enacted by the state legislature between May 1, 2021, and October 31, 2025.
— A table of tax collections for fiscal years 2021-2024.

“The most dramatic changes to Michigan’s tax system occurred when the FY2026 budget passed, starting with the first permanent road funding increase since 2015,” said Eric Lupher, Citizens Research Council president (left). “When fully phased-in, the state will generate an additional $2 billion annually for road maintenance and repair from a 20-cent increase in the gasoline tax, a new 24 percent excise tax on wholesale marihuana sales and a new earmark from the  corporate income tax.”