Michigan vs Texas: state income tax, 2025
For reference household P1 (single, $60,000 of wages), the state income tax is at most $2,304 more in Michigan than in Texas.
Both figures are a hypothetical full-year resident return for tax year 2025, over the same federal return, and count state income tax only. Neither is a relocation estimate: moving mid-year means two part-year returns, which this site does not figure. “Or less” means a mechanism the engine does not yet model would lower the figure; “or more” that it would raise it.
Six households, both states
| Household | Michigan | Texas | Michigan minus Texas |
|---|---|---|---|
| P1 Single, $60,000 of wages | $2,304or less | $0 | +$2,304or less |
| P2 Married filing jointly, $150,000, two children | $5,389or less | $0 | +$5,389or less |
| P3 Single, $85,000 wages + $15,000 long-term gain + $3,000 qualified dividends | $4,131or less | $0 | +$4,131or less |
| P4 Married retirees, $40,000 Social Security + $30,000 pension + $20,000 IRA, both 65+ | $1,632or less | $0 | +$1,632or less |
| P5 Head of household, $45,000, one child | $1,420or less | $0 | +$1,420or less |
| P6 Single, $1,200,000 of wages + $500,000 long-term gain | $72,004or less | $0 | +$72,004or less |
Full-year resident figures for 2025, state income tax only, with the same federal return in every column. Every figure is provisional. “Not shown” and “not figured” mean the engine will not state a number it cannot stand behind; hover for why.
Where the difference comes from
Michigan
- Where the return starts. Starts from federal adjusted gross income.
- Rate. A flat 4.25% on taxable income.MCL 206.51; 2025 MI-1040 instructions: "For tax year 2025, the Michigan income tax rate is 4.25%." Line 17: "Tax. Multiply the amount on line 16 by 4.25%." (checked 2026-08-05)
- Personal exemption. $5,800 per filer and $5,800 per dependant.MCL 206.30(2); 2025 MI-1040 instructions: "For tax year 2025, the personal and stillbirth exemption allowances are $5,800. The special exemption allowance for deaf, blind, hemiplegic, paraplegic, quadriplegic, or totally and permanently disabled is $3,400. The exemption allowance for qualified disabled veterans is $500." (checked 2026-08-05)
- Added to income. Municipal bond interest from other states.MCL 206.30(1)(a): "Add gross interest income and dividends derived from obligations or securities of states other than Michigan, in the same amount that has been excluded from adjusted gross income"; 2025 MI-1040 instructions, Schedule 1 line 1: "Residents enter nonbusiness gross interest, dividends, and income from obligations or securities of states and their political subdivisions other than Michigan." (checked 2026-10-20)
- Excluded from income. Social Security benefits.MCL 206.30(1)(f); 2025 MI-1040 Schedule 1 — Social Security benefits included in adjusted gross income are subtracted. (checked 2026-08-05)
- Earned income credit. 30% of the federal credit, refundable.
- Local income tax. Levied locally in parts of the state, and not included in the figures above.
Texas
- No individual income tax. Every persona owes nothing, as a computed zero.Tex. Const. art. VIII, §24-a (added by H.J.R. 38, adopted 5 November 2019, which also repealed the former §24 referendum requirement) (checked 2026-08-05)
What this comparison leaves out
Mechanisms the engine does not model yet. Each one is named with the direction it would move the figure, which is where every “or less” above comes from.
Michigan
- Retirement and pension deduction (Form 4884) and the Tier 2/Tier 3 Michigan Standard Deduction, where the return has retirement benefits in AGI or the older filer was born 1946–1959 MCL 206.30(9) — the figure is too high without it
- Special exemption triggers other than blindness MCL 206.30(3) — the figure is too high without it
- Qualified disabled veteran exemption MCL 206.30(3)(b) — the figure is too high without it
- Homestead property tax credit (MI-1040CR) MCL 206.520 — the figure is too high without it
- U.S. government obligation interest and the other Schedule 1 subtractions MCL 206.30(1) — the figure is too high without it
- Michigan-issued and territory municipal interest inside the Schedule 1 line 1 addition MCL 206.30(1)(a) — the figure is too high without it
- Credit for income tax paid to another state MCL 206.255 — the figure is too high without it
Texas
Nothing declared.
Taxes that are not income tax. Property tax, sales and excise taxes, and state payroll levies such as disability or paid-leave contributions are not counted here, and none of them is small. Federal tax is excluded because it is the same in both columns. A state income tax comparison is not a total tax burden comparison; see methodology.
Data status
Michigan. 2025 rules are provisional; engine coverage is implemented, with 7 mechanisms declared as not yet modelled. See the 2025 rate table.
Texas. 2025 rules are provisional; engine coverage is implemented, with nothing declared as unmodelled. See the 2025 rate table.
2026 state rules are not built yet, so this page compares 2025 only. Track status on the 2025 data status board.
Try it with your own return
The six households above are reference cases. Your own return will land differently. Compare Michigan and Texas over your own return — it stays in your browser.