State Sales Tax: 6%
Use Tax: 4%
Local Property Tax: 50% Market Value
Personal Income Tax: 4.4%

• MEGA Credits MEGA (Michigan Economic Growth Alliance) is a cutting-edge program which gives powerful incentives, including an abatement of Michigan Single Business Tax, and credits for job creation for up to 20 years. Click here to learn more.
  
  
• Property Tax Abatements Michigan communities can abate up to 50% of local property taxes for up to 12 years. The state can provide up to a 6-mill reduction in property taxes for up to 12 years depending on the impact on local tax base and job creation. State law also exempts inventory, pollution control equipment and certain tools, dies, jigs, and fixtures from local property taxes. The state sales tax is exempted from the purchase of machinery used in manufacturing and energy used in manufacturing.
  
  
• Renaissance Zones Renaissance Zones are Governor Engler's plan to spur economic revival of targeted areas in the state of Michigan. Businesses and residents locating in these areas will be exempt from state and local taxes for up to 10 years. These taxes will be phased back in during the last three years, in 25% increments.
  
  
• The Single Business Tax The Single Business Tax provides a capital acquisition deduction for real and personal property used in the production process which may be carried forward for up to ten years. For capital intensive and high-tech companies, this can mean that the company could have no SBT liability for the first years of operation. Recent changes in the law have also decreased the SBT rate and expected legislation will reduce the base on which this value added tax is calculated by exempting some employee costs.