Historic Personal Income Tax

Michigan Historic Personal Income Tax Revenue: 1968 to Present

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Fiscal Year Revenue Yield
($ millions)
  Public Act Change Caused by Act
1967   A PA 281 Personal Income Tax established with a 2.6 percent tax rate and $1,200 personal exemption effective July 20, 1967.
1968 $ 262.9      
1969 391.7      
1970 411.5      
1971 472.4 B PA 76 Increased tax rate to 3.9 percent.
1972 731.3      
1973 921.5 C PA 20 Increased personal exemption to $1,500 effective January 1, 1974.
1974 965.7      
1975 962.8 D PA 19 Increased tax rate to 4.6 percent.
1976 1,115.3      
1977 1,440.7      
1978 1,700.7      
1979 1,948.3      
1980 1,924.1      
1981 2,033.1      
1982 2,109.5 E PA 155 Increased tax rate to 5.6 percent effective April 1, 1982 through September 30, 1982.
Returned tax rate to 4.6 percent effective October 1, 1982.
1983 2,600.0 F PA 15 Increased tax rate to 6.35 percent for calendar year 1983.
1984 3,462.8 G PA 221 Reduced tax rate to 5.35 percent as of September 1, 1984.
1985 3,221.8      
1986 3,281.2 H PA 16 Reduced tax rate to 4.6 percent effective April 1, 1986.
1987 3,149.8 I PA 254 Increased the personal exemption to $1,600 for 1987, $1,800 for 1988, $2,000 for 1989, and $2,100 for 1990.
1988 3,571.3      
1989 3,870.8      
1990 3,961.0      
1991 3,951.9      
1992 3,920.0      
1993 4,183.7 J PA 328 Decreased tax rate to 4.4 percent effective May 1, 1994.
1994 4,412.9      
1995 5,247.2 K PAs 2&3 Increased the personal exemption to $2,400 in 1995, to $2,500 for tax years beginning after 1996, and indexed in $100 increments, beginning with the 1998 tax year, the personal exemption to the consumer price index.
1996 5,365.7      
1997 5,934.7 L PA 86 Beginning with the 1998 tax year, increased personal exemption by $200.
1998 6,397.1 M PA 2-6 Reduced the tax rate by 0.1 percentage point per year beginning in 2000, with final reduction to 3.9% occurring in 2004.
1999 6,939.0      
2000 7,246.5      
2001 6,839.3      
2002 6,260.3      
2003 5,845.7      
2004 5,912.0      
2005 6,038.6      
2006 6,242.9      
2007 6,452.6 N PA 94 Increased tax rate to 4.35% effective October 1, 2007. Beginning October 1, 2011, and each October 1st after 2011, the rate is reduced 0.1% until the rate reaches 3.95%. On October 1, 2015, the rate is 3.9%.
Source: Michigan Department of Treasury.