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Michiganflat 4.25% income tax, 13th highest property tax, median home $250K

R+2  ·  Moderate tax burden  ·  COL index 88

B

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 12th 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.

State Profile

54/100
255075100TAXES64SAFETY51HEALTH51SCHOOLS24AFFORDABLE86LONGEVITY48

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Taxes

Sources: state revenue departments · Tax Foundation 2026 · income-tax brackets 2026

Income Tax

4.25% flat

Property Tax

~$3,300/yr on median home

1.32% / yr

Sales Tax

6% avg

Social Security

Taxed

Pension / IRA

Partial

Estate Tax

None

Inheritance Tax

None

Capital Gains

Taxed as income

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)

96.2

Mortgages 90+ Days Late

FHFA, latest quarter

0.9%

Cost of Living Index

National avg = 100

88

Median Home Price

$250,000

Median Rent (2BR)

$1,150/mo

Home Insurance

Near national avg (~$1,900/yr)

$1,100/yr

Flood Insurance

$500/yr

Homestead Exemption

Home equity protected from creditors

Unlimited

Asset Protection

Strong

Homes in HOAs

Moderate HOA presence (Census ACS 2024)

18.1%

Zoning Restrictiveness

Among the least restrictive zoning (Wharton WRLURI 2018)

Permissive

Short-Term Rentals (Airbnb)

No statewide framework; 2025 STR tax bill failed; local control.

Local Control

Crime & Safety

Sources: FBI Crime Data Explorer 2023 · SafeHome registry counts 2025 · HUD PIT 2024

Violent Crime Rate

Near national avg

445 / 100K

Property Crime Rate

Near national avg

1,670 / 100K

Traffic Fatality Rate

10.3 / 100K

Registered Sex Offenders

Above the state median (SafeHome 2025)

405 / 100K

Homeless Population

Low homelessness rate — 17% unsheltered (HUD 2024 PIT)

96 / 100K

Healthcare

Sources: Commonwealth Fund 2023 · KFF · CDC

State Healthcare Rank

#25 of 50

Life Expectancy

75.7 yrs

Medicaid Expansion

Expanded

Uninsured Rate

Well below national avg

5.9%

Education

Sources: Education Week 2023 · NCES · state statutes (school choice)

College Completion Rate

College Scorecard, in-state institutions (mean)

55%

Avg College Cost of Attendance

College Scorecard 2024

$30,034/yr

K-12 Quality Rank

#38 of 50

School Choice / Vouchers

Not Available

HS Graduation Rate

Near national avg (~87%)

82.4%

Pupil-Teacher Ratio

Near national avg (~16)

17.6 students/teacher

Childcare

Sources: Child Care Aware · Census ACS 2022

Avg Infant Care (Full-Time)

$1,300/mo

Utilities & Daily Costs

Sources: EIA (electricity, weekly gas) · USDA · eGRID 2022

Grid Carbon Intensity

Near US average (~820)

1009 lb CO₂/MWh

Avg Monthly Energy Bill

$140/mo

Electricity Rate

Near national avg (13¢)

16.3¢/kWh

Energy Mix

12% renewable · ☀ 1% solar · 💨 8% wind

Avg Monthly Groceries

2-person household, moderate spending

$460/mo

Road Quality Rank

Among the worst roads in the US

#47 of 50

Airports & Travel

Sources: FAA · BTS

Nonstop Destinations

From state's primary airport

155+ routes

Major Hub Airport

Top-25 US airport by passengers

Yes

Culture & Lifestyle

Sources: Census CBP · Brewers Association 2024 · Pollstar · AANR/TNS · AGA 2024

Urban Population

Mix of urban and rural

75% urban

Restaurant Density

420/100K

Religious Congregations

195/100K

Pro Sports Teams

NFL + NBA + MLB + NHL + MLS

5 teams

Major Venues

Stadiums, arenas, amphitheaters (10K+ capacity)

7 venues

Craft Breweries

4.3/100K residents — Strong scene

430 breweries

Craft Distilleries

Strong spirits scene

90 distilleries

Live Music

Motown birthplace (Detroit); Bell's, Founders, Short's — nationally recognized craft brands; Mo Pop Festival

Strong

Transportation

Sources: NHTSA FARS · FCC · insurance rate surveys 2024 · IIHS helmet laws 2026

Car Insurance (Avg Annual)

Very expensive (national avg ~$1,600)

$2,870

Traffic Fatality Rate

10.3 / 100K

Broadband Access

83% of households

Work From Home

State residents who primarily work from home (ACS)

471,483 workers

Social & Legal

Sources: Guttmacher · KFF · NCSL · state statutes 2026

Formal Volunteering Rate

AmeriCorps / Census CPS 2023 (US ~28%)

26.4%

Votes in Local Elections

AmeriCorps / Census CPS 2023

57.4%

Abortion Access

Voters restored abortion rights 2022; legal to viability

Protected

LGBTQ+ Protections

Comprehensive

Marijuana

Recreational

Minimum Wage

$10.33/hr

Right to Work

No

Sports Betting

Legal

Casino Gambling

Commercial casinos

Online Gambling

Legal

State Lottery

Detroit's 3 commercial casinos plus tribal casinos statewide. Online casino gambling legal since 2021 — strong market.

Yes

Age of Consent

16

Sex Education

Sex ed required by state

Abstinence-plus

Nude Beaches & Naturist Clubs

Turtle Lake Resort · Forest Hills Club · Spring Lake Sun Resort

Active scene

Environment & Climate

Sources: EPA AQI · NOAA · FEMA National Risk Index

Air Quality (Annual AQI)

Near national avg

42

Natural Disaster Risk

Moderate

Primary Hazards

blizzardfloodtornado

Politics & Gun Laws

Sources: OpenElections 2024 · Giffords 2025 · state statutes

2024 Presidential Vote

R+2

Gun Laws

Gun ControlC+
2A LibertyC+

Carry Permit

Shall-issue

Purchase Permit Required

Yes

Carry in Bars

Prohibited

Carry in Restaurants

Allowed

Carry in Places of Worship

CPL prohibited in bars/taverns and churches without permission; restaurants allowed.

Prohibited

Gambling

Legal

Jobs & Economy

Sources: BLS QCEW 2024 · BLS JOLTS 2024 · BLS union membership 2025 · Census ACS

Job Openings Rate (JOLTS)

Near US average (~4.5%)

4.6%

Quits Rate (JOLTS)

Workers quit when they can find better; BLS 2024 average

2.1%

Job Market

+1% job growth · 4% unemployment

Moderate

Top Industries

AutomotiveHealthcareTechnology

Tech Jobs

#19 of 50

Healthcare Jobs

#14 of 50

Remote Work

18% of workers

Median Household Income

$70,448

Union Membership

Above-average union presence (BLS 2025)

13.0% of workers

Business Climate

Sources: Tax Foundation · state filings

Corporate Income Tax

6%

LLC Formation Fee

$50 one-time

LLC Annual Fee

$25/yr

Business Climate Rank

#12 of 50

Daily Life

Sources: American Pyrotechnics Association · state statutes 2026 · IIHS

Gas Price (Regular)

Below avg (-0.08 vs national avg)

$3.22/gal

Consumer Fireworks

Consumer fireworks legal; 18+ only; neighbors can request no-use periods

Legal

Motorcycle Helmet Law

Required under 21 (IIHS 2026)

Age-Limited

Weather & Natural Risks

Sources: NOAA · NWS Storm Prediction Center · FEMA NRI

Winter Severity

Avg January high: 28°F

Cold

Summer Heat

Moderate summers

82°F avg July

Annual Rainfall

34" / yr

Tornado Risk

Low

Hurricane Risk

Very Low

Wildfire Risk

Low

Flood Risk

Low

Natural Hazards

Sources: USGS · CDC · USDA APHIS · NOAA · FEMA NRI 2023

19LOW danger
EEE zone (Upper Peninsula)Polar vortex wintersLake effect snow disasters

Venomous Snakes

Low

Spider Hazard

Low

Hurricane Risk

Minimal

Tornado Risk

Moderate

Wildfire Risk

Low

Earthquake Risk

Minimal

Danger score is a composite index. Methodology ↗

Veteran Benefits

Sources: VA.gov · Military.com state guide · Tax Foundation

Veteran-Friendly Score

6.3% of state population are veterans

78/100

Property Tax Exemption

100% disabled: full property tax exempt

Partial

Military Retirement Pay

Tax Exempt

Active Duty Pay

Tax Exempt

VA Facilities Access

Good

Notable Benefits

Military retirement fully exempt since 2024

Explore Michigan counties

Income, housing, poverty, healthcare — ranked by county

Explore Counties

See your full cost of living in Michigan

Housing, taxes, childcare, insurance — all estimated.

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What Residents Say

Should I move : r/Michigan

Cost of living is about as cheap as you'll get without sacrificing too much quality of life. Low cost of living comes with lower quality ......

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Moving to Detroit

Property taxes are high generally in Michigan, but lower property values/more affordable housing in part due to high property taxes) to ......

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Cost of living? : r/kzoo

Plus, there's a lot fewer taxes in general in kzoo - nowadays most cities have like a 5-10% tax on restaurant food out of nowhere, that's ......

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Wanting to move : r/hollandmichigan

... cost of living and rampant urban sprawl that is destroying Florida's ecosystem. ... Michigan property taxes are handled strangely ......

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43% of Michiganders are too poor to afford basic ...

43% of Michiganders are too poor to afford basic necessities of life, a single adult can survive on $21K a year and a family of four needs $61K ......

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Looking to move back to Grand Rapids : r/grandrapids

GR is way cheaper than those major metro areas. Cost of living has gone up everywhere. high property taxes, higher sales tax, tolls, and high ......

reddit.com ↗

How expensive is it to move to Michigan? : r/movingout

Report How expensive is it to move to Michigan? moving due to cost of living ($300k budget)? A community to help you start living...

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My partner and I currently live in Michigan. : r/povertyfinance

Google rentals in the area to see average cost for the home you'd like to have. Keep in mind, though- moving is expensive. If you think about ......

reddit.com ↗

Considering a move to Everett from Michigan – looking for ...

Cost of living in practice. It is expensive here comparatively, and that's pretty easy to see looking at real estate and rent prices. The first ......

reddit.com ↗

Cost of Living percentage : r/grandrapids

Cost of living far exceeds the wages the average person is bringing in. I got a 3% raise, my rent increase for this year was greater percentage ......

reddit.com ↗

Michigan will change its laws. We'll email you when it does.

One email when Michigan changes a tax, gun, cannabis or abortion law. Unsubscribe in one click.

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.

Your Priorities

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Quick Profiles

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Annual Income

$150K

Affects effective income tax rate

$0$500K$5M+

Retirement Savings

$0

Affects pension and SS tax burden

None$500K$10M+

Social Security

None

Annual Social Security benefit

None$150K/yr

My Property Is Worth

$400K

Affects property tax burden

Tax burden ↓$1M$50M+

Home Buying Budget

$400K

Compared to state median home price

Hard to find$250K$5M+

Monthly Rent Budget

Don't care

Compared to state median 2BR rent

Don't care$10K/mo

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State unemployment and job growth

Don't careHot market

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Don't careMust have hub

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Mid-size city

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State's political lean

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State gun law grade (Giffords)

Gun Control2A Freedom

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Neutral

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Don't careMust have pro teams

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% population 65+ (Census)

Young areaRetirement-heavy

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Violent crime rate per 100K (FBI)

Don't careVery safe

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Healthcare system rank (Commonwealth Fund)

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Childcare Affordability

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Cost of living proxy for childcare affordability

Don't careMust be affordable