Michiganflat 4.25% income tax, 13th highest property tax, median home $250K
R+2 · Moderate tax burden · COL index 88
4.25%
Income Tax
445
Violent Crime / 100K
75.7
Life Expectancy
$250K
Median Home
$1,300
Childcare / Mo
Michigan in plain English
Worth knowing before you move to Michigan
Michigan has a flat income tax just over 4% and has never taxed Social Security. It restored a broad exemption for pension and retirement income in 2023, phasing in over four years. Home prices are below the national average nearly everywhere except the lakeshore counties and the Ann Arbor area. Detroit's population is growing again for the first time since the 1950s.
What Michigan taxes, and what it doesn't
Michigan levies a flat 4.25% income tax. A household earning $75,000 pays an effective 4.3%, about $3,188 a year; at $150,000 the effective rate is 4.3%. Among the 41 states that tax income, Michigan has the 17th lowest effective rate at $100,000 of income.
Property tax runs 1.32% of home value a year, roughly $3,300 on the state's median home of $250K. The national effective rate is about 1.10%, and Michigan has the 13th highest rate of the 50 states.
Combined state and local sales tax averages 6.00%, the 11th lowest in the country (the state portion is 6%).
For retirees: Michigan is one of the few states that taxes Social Security benefits, pension income is partly exempt, and there is no estate or inheritance tax.
Capital gains are taxed as ordinary income.
Housing and the cost of living in Michigan
Michigan's cost of living index is 88, where 100 is the national average; that is the 10th cheapest of the 50 states.
The median home costs $250K, 18% below the national figure and the 13th lowest among the states. A two-bedroom rents for about $1,150 a month.
Carrying costs matter as much as the price: home insurance averages $1,100 a year, flood coverage adds about $500 where it is needed, car insurance runs $2,870.
Budget $140 a month for electricity and gas, $460 a month in groceries for two, $1,300 a month for full-time infant care.
Safety, health and schools
Violent crime is 445 incidents per 100,000 residents in the FBI's 2023 Crime Data Explorer figures, above the median state (387); Michigan is the 18th most violent of the 50 by that measure. Property crime is 1,670 per 100,000.
Life expectancy is 75.7 years (County Health Rankings 2024). 5.9% of residents have no health insurance, and the state has expanded Medicaid. The Commonwealth Fund's 2023 scorecard ranks Michigan's health system 25th of 50.
Education Week's 2023 Quality Counts report ranks K-12 schools 38th in the country.
Politics, guns and social policy
Politically, Michigan is a swing state decided by Trump by 2 points in 2024.
On guns, concealed-carry permits are shall-issue, a permit is required to buy a handgun, and Giffords grades the state's gun laws C+.
Abortion is protected by state law. Marijuana is legal for adults. Michigan is not a right-to-work state, and the minimum wage is $10.33 an hour.
Climate, risk and getting around
Natural disaster risk is moderate. The main hazards are blizzard, flood, tornado. Annual average air quality index is 42 (under 50 is good).
Michigan has a major hub airport, with about 155 nonstop destinations from its busiest airport.
Written from the figures on this page. Rankings compare the 50 states. Sources and years are listed with each figure below.
Largest counties in Michigan
State Profile
Taxes
Sources: state revenue departments · Tax Foundation 2026 · income-tax brackets 2026
▾
Taxes
Sources: state revenue departments · Tax Foundation 2026 · income-tax brackets 2026
Income Tax
Property Tax
~$3,300/yr on median home
Sales Tax
Social Security
Pension / IRA
Estate Tax
Inheritance Tax
Capital Gains
Housing & Cost of Living
Sources: Zillow · Census ACS · iii.org and state insurers 2026 · WRLURI 2018 · Census 2024 (HOA)
▾
Housing & Cost of Living
Sources: Zillow · Census ACS · iii.org and state insurers 2026 · WRLURI 2018 · Census 2024 (HOA)
Price Level vs US (BEA)
Near US average (100)
Mortgages 90+ Days Late
FHFA, latest quarter
Cost of Living Index
National avg = 100
Median Home Price
Median Rent (2BR)
Home Insurance
Near national avg (~$1,900/yr)
Flood Insurance
Homestead Exemption
Home equity protected from creditors
Asset Protection
Homes in HOAs
Moderate HOA presence (Census ACS 2024)
Zoning Restrictiveness
Among the least restrictive zoning (Wharton WRLURI 2018)
Short-Term Rentals (Airbnb)
No statewide framework; 2025 STR tax bill failed; local control.
Crime & Safety
Sources: FBI Crime Data Explorer 2023 · SafeHome registry counts 2025 · HUD PIT 2024
▾
Crime & Safety
Sources: FBI Crime Data Explorer 2023 · SafeHome registry counts 2025 · HUD PIT 2024
Violent Crime Rate
Near national avg
Property Crime Rate
Near national avg
Traffic Fatality Rate
Registered Sex Offenders
Above the state median (SafeHome 2025)
Homeless Population
Low homelessness rate; 17% unsheltered (HUD 2024 PIT)
More on Michigan
Healthcare#25 of 50▾
Sources: Commonwealth Fund 2023 · KFF · CDC
State Healthcare Rank
Life Expectancy
Medicaid Expansion
Uninsured Rate
Well below national avg
EducationK-12 #38 of 50▾
Sources: Education Week 2023 · NCES · state statutes (school choice)
College Completion Rate
College Scorecard, in-state institutions (mean)
Avg College Cost of Attendance
College Scorecard 2024
K-12 Quality Rank
School Choice / Vouchers
HS Graduation Rate
Near national avg (~87%)
Pupil-Teacher Ratio
Near national avg (~16)
Childcare$1,300/mo infant care▾
Sources: Child Care Aware · Census ACS 2022
Avg Infant Care (Full-Time)
Utilities & Daily Costs$140/mo energy▾
Sources: EIA (electricity, weekly gas) · USDA · eGRID 2022
Grid Carbon Intensity
Near US average (~820)
Avg Monthly Energy Bill
Electricity Rate
Near national avg (13¢)
Energy Mix
Avg Monthly Groceries
2-person household, moderate spending
Road Quality Rank
Among the worst roads in the US
Airports & Travel155+ nonstop routes▾
Sources: FAA · BTS
Nonstop Destinations
From state's primary airport
Major Hub Airport
Top-25 US airport by passengers
Culture & Lifestyle75% urban▾
Sources: Census CBP · Brewers Association 2024 · Pollstar · AANR/TNS · AGA 2024
Urban Population
Mix of urban and rural
Restaurant Density
Religious Congregations
Pro Sports Teams
NFL + NBA + MLB + NHL + MLS
Major Venues
Stadiums, arenas, amphitheaters (10K+ capacity)
Craft Breweries
4.3/100K residents: Strong scene
Craft Distilleries
Strong spirits scene
Live Music
Motown birthplace (Detroit); Bell's, Founders, Short's — nationally recognized craft brands; Mo Pop Festival
Transportation$2,870/yr car insurance▾
Sources: NHTSA FARS · FCC · insurance rate surveys 2024 · IIHS helmet laws 2026
Car Insurance (Avg Annual)
Very expensive (national avg ~$1,600)
Traffic Fatality Rate
Broadband Access
Work From Home
State residents who primarily work from home (ACS)
Social & Legal$10.33/hr minimum wage▾
Sources: Guttmacher · KFF · NCSL · state statutes 2026
Formal Volunteering Rate
AmeriCorps / Census CPS 2023 (US ~28%)
Votes in Local Elections
AmeriCorps / Census CPS 2023
Abortion Access
Voters restored abortion rights 2022; legal to viability
LGBTQ+ Protections
Marijuana
Minimum Wage
Right to Work
Sports Betting
Casino Gambling
Online Gambling
State Lottery
Detroit's 3 commercial casinos plus tribal casinos statewide. Online casino gambling legal since 2021 — strong market.
Age of Consent
Sex Education
Sex ed required by state
Nude Beaches & Naturist Clubs
Turtle Lake Resort · Forest Hills Club · Spring Lake Sun Resort
Environment & ClimateAQI 42▾
Sources: EPA AQI · NOAA · FEMA National Risk Index
Air Quality (Annual AQI)
Near national avg
Natural Disaster Risk
Primary Hazards
Politics & Gun LawsR+2 · gun law grade C+▾
Sources: OpenElections 2024 · Giffords 2025 · state statutes
2024 Presidential Vote
Gun Laws
Carry Permit
Purchase Permit Required
Carry in Bars
Carry in Restaurants
Carry in Places of Worship
CPL prohibited in bars/taverns and churches without permission; restaurants allowed.
Gambling
Jobs & Economy4% unemployment▾
Sources: BLS QCEW 2024 · BLS JOLTS 2024 · BLS union membership 2025 · Census ACS
Job Openings Rate (JOLTS)
Near US average (~4.5%)
Quits Rate (JOLTS)
Workers quit when they can find better; BLS 2024 average
Job Market
+1% job growth · 4% unemployment
Top Industries
Tech Jobs
Healthcare Jobs
Remote Work
Median Household Income
Union Membership
Above-average union presence (BLS 2025)
Business Climate#12 of 50▾
Sources: Tax Foundation · state filings
Corporate Income Tax
LLC Formation Fee
LLC Annual Fee
Business Climate Rank
Daily Life$3.22/gal gas▾
Sources: American Pyrotechnics Association · state statutes 2026 · IIHS
Gas Price (Regular)
Below avg (-0.08 vs national avg)
Consumer Fireworks
Consumer fireworks legal; 18+ only; neighbors can request no-use periods
Motorcycle Helmet Law
Required under 21 (IIHS 2026)
Weather & Natural Risks82°F avg July▾
Sources: NOAA · NWS Storm Prediction Center · FEMA NRI
Winter Severity
Avg January high: 28°F
Summer Heat
Moderate summers
Annual Rainfall
Tornado Risk
Hurricane Risk
Wildfire Risk
Flood Risk
Natural Hazards19/100 danger▾
Sources: USGS · CDC · USDA APHIS · NOAA · FEMA NRI 2023
Venomous Snakes
Spider Hazard
Hurricane Risk
Tornado Risk
Wildfire Risk
Earthquake Risk
Danger score is a composite index. Methodology ↗
Veteran Benefits78/100 veteran-friendly▾
Sources: VA.gov · Military.com state guide · Tax Foundation
Veteran-Friendly Score
6.3% of state population are veterans
Property Tax Exemption
100% disabled: full property tax exempt
Military Retirement Pay
Active Duty Pay
VA Facilities Access
Notable Benefits
Explore Michigan counties
Income, housing, poverty, healthcare, ranked by county
See your full cost of living in Michigan
Housing, taxes, childcare, insurance: all estimated.
Compare Similar States
MI vs IA
Michigan vs Iowa
COL 88 vs 88 · 4.25% vs 3.8% income tax
Full comparison →
MI vs OH
Michigan vs Ohio
COL 88 vs 88 · 4.25% vs 2.75% income tax
Full comparison →
MI vs AL
Michigan vs Alabama
COL 88 vs 87 · 4.25% vs 5% income tax
Full comparison →
MI vs IN
Michigan vs Indiana
COL 88 vs 87 · 4.25% vs 2.95% income tax
Full comparison →
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Data is informational only. Verify with a tax professional, real estate agent, and local sources before making relocation decisions. Crime data: FBI Crime Data Explorer 2023. Healthcare: Commonwealth Fund 2023; life expectancy from County Health Rankings 2024. Education: Education Week 2023. Housing: Zillow monthly index and Census ACS 2022. Insurance: rate surveys 2024. Sponsored links marked “Sponsored” may earn a commission. This does not affect our data or rankings.