HB4170

Individual income tax: rate; rollback of rate to 4.05% and effect of a triggering rate reduction; provide for, and clarify permanency. Amends sec. 51 of 1967 PA 281 (MCL 206.51).

Chamber Passed·3/18/25

Michigan HB4170 rolls back the individual income tax rate to 4.05% and clarifies the conditions for future rate reductions.

Michigan HB4170 amends the individual income tax rates, setting the rate at 4.05% from October 1, 2024, and onward. It specifies that if the total general fund/general purpose revenue increases more than the inflation rate for a given period, the tax rate will reduce. The bill also details the percentages of gross collections to be deposited into the state school aid fund for specific periods. It includes definitions for terms such as "capped general fund/general purpose revenue," "current rate," and "total general fund/general purpose revenue.

Included in complete analysis

  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

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Where it stands

Last
Passed the House · 65–43 · Mar 18, 2025
Current
Finance, Insurance, And Consumer Protection Committee
Next
Senate floor vote

Sponsors

0
24
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Democratic CaucusRepublican Caucus

Roll Call Votes

65 Yea

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43 Nay

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Calendar

Mar 11, 2025

10:30 AM

House Finance

History

Mar 20, 2025

Senate

Passed By House With Immediate Effect

Mar 20, 2025

Senate

Referred To Committee On Finance, Insurance, And Consumer Protection

Mar 18, 2025

House

Read A Second Time