Michigan Capital Gains Tax Calculator
Michigan taxes capital gains at its flat 4.25% income tax rate. Estimate federal + state tax.
Michigan taxes capital gains at its flat individual income tax rate of 4.25% (MCL 206.51), with no separate rate for long-term gains. The statute can lower the rate for a single year when general fund revenue grows faster than inflation.
| Rule | Michigan |
|---|---|
| Rate | 4.25% flat (MCL 206.51(1)(b)). |
| Short- vs long-term | No difference. |
| Rate trigger | MCL 206.51(1)(c): for tax years from 2023, a rate reduction applies for a year when general fund/general purpose revenue growth exceeds the statutory test. |
| Local tax | Some Michigan cities levy their own income tax, which this calculator does not include. |
Sources: MCL 206.51, Tax rate on taxable income of person other than corporation, read 2026-10-10.
Estimate only, not an official determination. What this estimate covers and its limits
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Additional Details
Pre-filled: Editable top/representative-rate proxy; not a state return calculation
Additional Details
Estimated Federal + State Tax
Estimated • Based on your inputs
Estimated Net Sale Proceeds
$90,375.00
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
The Michigan line is the modeled gain times the 4.25% in the Modeled State Rate field, added to the federal estimate.
Estimate only — these are not official figures
State tax is not a return calculation: the 4.25% default is applied flat to the whole gain, so the brackets, thresholds and exclusions in the Michigan table above are not computed.
Do not rely on these amounts for budgeting or payment. For exact amounts, check the Michigan tax authority (https://www.michigan.gov/taxes/iit).
Key State Information
Michigan's calculation is simple: the gain is part of taxable income and the flat rate applies. What a seller should check is the year's rate, because the statute's revenue trigger can cut it for one year, and whether their city adds its own income tax.
Example Calculation
A married couple in Grand Rapids with $88,000 of other taxable income sells a lake lot bought two and a half years ago for $155,000 at $238,000.
Entered as $155,000 basis, $238,000 proceeds, married filing jointly, $88,000 of other income: the calculator finds a $83,000 long-term (30 months) gain, $10,815 of regular federal tax, and $3,528 of Michigan tax at the 4.25% default.
Result: $14,343 in total (17.28% of the gain), leaving $223,658. $3,528 is 4.25% of the $83,000 gain; a city income tax, where the couple's city levies one, comes on top.
StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
What is the Michigan capital gains tax rate?
4.25%, Michigan's flat individual income tax rate under MCL 206.51, applied to gains like any other income.
Can the Michigan rate change from year to year?
Yes. MCL 206.51(1)(c) lowers the rate for a tax year when general fund/general purpose revenue growth passes the statute's test, so confirm the rate for your tax year.
Do Michigan cities tax capital gains?
Some Michigan cities have their own income tax; this calculator models the state tax only.
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