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Michigan income tax cut expected for 2023

The expected decrease in the state's income tax, from 4.25% to 4.05%, is a result of a 2015 law and an estimated $9.2 billion surplus in the state budget.

LANSING, Mich. — Tax cuts have taken center stage in Lansing as both Democratic and Republican lawmakers have introduced bills aimed at easing tax burdens.

Following last week's introduction of Democrats' tax proposals, Republican leaders in the Michigan House and Senate on Wednesday touted both their own proposals introduced last week, as well as another law passed under Republican legislative control in 2015. 

Given the state's current $9.2 billion estimated surplus, that law is expected to trigger an automatic decrease of the state's income tax.

"While these conversations are going on about taxes here in Michigan, we must commit that we will allow the people of Michigan to get this income tax cut that's coming," Hall said. "They must get this relief because cutting the income tax means relief for all Michigan workers, families, seniors."

The expected decrease would take the state income tax rate down from 4.25% to 4.05% and could provide some relief for residents.

According to the U.S. Census Bureau, the estimated annual household income in Kent County was $69,786 in 2021 dollars. Making that much a year, a household could expect to save nearly $140 a year.

Republicans on Wednesday urged Democrats not to interfere with the expected tax cut.

"We're calling on them not to do that — not to play with this trigger," Hall said. "This is an automatic income tax cut that should take effect for all Michigan workers and families and we need to protect it."

When asked by reporters, GOP leadership didn't provide any specific examples that indicated to them that Democrats would plan to block the increase.

13 On Your Side reached out to Senate Majority Leader Winnie Brinks of Grand Rapids for comment on whether Democrats intended to do so. We did not hear back as of Wednesday afternoon.


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