Michigan Has One Of The Highest Effective Tax Rates In The US
Ugh, we are in the middle of tax season right now and Michigan just happens to have one of the highest effective tax rates in the country.
WalletHub.com ranked states based on how "hard" they tax their citizens and they found that Michigan has the 11th highest effective tax rates in the country.
What is an effective tax rate? It's slightly complicated, but it can be basically summed up as the percentage of your total income that is paid to the government in taxes.
Average Michiganders have an effective state and local tax rate of 12.43%, which is over 15% higher than the national average. You can see how the other states rank below.
To dive deeper into WalletHub's analysis, you can visit their blog. And if you want to know how they decided on the rankings, you can check out their methodology here.