Michigan Income Tax Decrease
Posted on September 7, 2012
Effective October 1, 2012, Michigan is reducing their income tax rate from 4.35% to 4.25. The retirement benefit withholding rate will also be adjusted to 4.25, but with no changes to the monthly pension deduction amount.
In addition, the personal exemption amount will increase from $3,700 to $3,950.
Paycor has already made this legislative change. All payrolls dated October 1, 2012, and beyond will be affected.
To learn more about this tax rate change, visit the Michigan Department of Treasury website.