MARQUETTE – State Treasurer Rachael Eubanks, Senate Fiscal Agency Director Kathryn Summers and House Fiscal Agency Director Mary Ann Cleary have published their statutorily required calculation to determine the individual income tax rate for the 2026 tax year.

Upon publication of the state of Michigan’s Annual Comprehensive Financial Report for Fiscal Year (FY) 2025 – which ran from Oct. 1, 2024, to Sept. 30, 2025 – the state treasurer and agency directors determined that the general fund growth did not exceed inflation and a rate adjustment calculation was not required.

“Each year, following the release of Michigan’s Annual Comprehensive Financial Report, state law requires our agencies to determine whether the individual income tax rate should change,” State Treasurer Rachael Eubanks said. “After completing this year’s analysis, the results show that the conditions for an income tax rate reduction were not met. As a result, the individual income tax rate for the 2026 tax year will remain at 4.25%.”

For the 2026 tax year, the determination is based on the state fiscal year ended Sept. 30, 2025.  Based on the data from that period, total general fund revenue decreased by 1.56% and the rate of inflation for the period was 2.70%. These conditions do not require the application of the statutory formula to determine a potential rate reduction. Accordingly, the rate in effect under state law for the 2026 tax year is 4.25%.