Most & Least Taxing States 2012

By Bloomberg BNA - 2012-04-13T16:45:59Z

Photograph by Bloomberg

Company Symbol % Change
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Michigan

Income tax: 4.35% (flat tax rate)
State sales tax: 6%
Property tax per capita: $1,409
Inheritance tax: None
Estate tax: None

In 2011, Michigan overhauled its tax system by abandoning its three-year-old Michigan Business Tax and adopting a corporate income tax in its place, beginning in 2012. While the new corporate system is less complex than the short-lived MBT, it shifts some of the tax burden to individuals who will be subject to tax on pension income beginning in 2012.

Michigan drivers will pay more taxes at the gas pump if the price of oil continues to rise. The state's sales tax applies and is based on a percentage of the purchase rather than a fixed amount based on gallons bought.

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