- Michigan’s income tax rate increased to 4.25% in 2024, a 20% hike from last year.
- The tax hike adds $20 for every $10,000 earned.
- Some lawmakers, like Rep. Kathy Schmaltz, propose a tax cut to 4.05%.
- Democrats argue the cut would mainly benefit the wealthy, reducing funds for essential services.
- Tax expert Tonya Harris advises workers to check their pay stubs for correct tax withholding.
A change that impacts your bottom line.
"I've had several people this year alone that have not paid enough in Michigan taxes," Tax Specialist Tonya Harris said.
Michigan's income tax level increased in 2024.
"It's 4.25%. It was a 20% hike from the previous year," Harris said.
That equates to an extra 20 dollars for every 10,000.
The very same numbers that some state lawmakers want to provide in a tax cut.
"People are hurting right now. They can't afford things," Republican State Representative Kathy Schmaltz said.
The bill's sponsor Jackson-area representative Kathy Schmaltz is sponsoring the bill that will keep the state income tax at 4.05%, no matter the amount of state revenue.
"So you'll get the income tax cut and it'll stay that way," Schmaltz said.
In response, Democratic Leader Ranjeev Puri says this tax cut is not to help our neighbors saying "This republican tax scheme will cut millions of dollars from essential services to pay for a tax cut that will benefit billionaires like Dick and Betsy Devos."
Meanwhile, no matter what happens next year, during this tax season, Harris says neighbors need to keep an eye on that paycheck stub.
"If you get your check stub and they're not taking the right amount of taxes out the 4.25% then go to HR," Harris said.
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