Michigan Department of Treasury - Taxes

Corporate Income Tax, Individual Income Tax, and Flow-Through Entity Tax Update

Michigan’s Public Act 24 of 2025 changes how income tax is calculated at the state level by decoupling from several federal Internal Revenue Code (IRC) provisions. As a result, certain federal tax deductions enacted with the One Big Beautiful Bill Act (OB3) will be deducted at a slower pace on Michigan returns. Generally, this will cause an initial add-back to the state level calculation beginning with tax year 2025. Michigan also decoupled from some OB3 changes that affect prior tax years (2022 – 2024); amended returns are not required.

Notice: Decoupling Michigan’s Income Taxes from Certain IRC Provisions

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Michigan Department of Treasury - Taxes

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Business Taxes

City Tax

Individual Income Tax

Property Tax

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Popular on michigan.gov

How Do I...

Michigan Department of Treasury - Taxes

Tax Types

Business Taxes

City Tax

Individual Income Tax

Property Tax

Collections, Audits, and Appeals

Forms and Instructions

Income Tax Refund Status

Legal Tax Resources

Tax Professionals

W-2 and 1099 Filing Requirements

Popular Resources

Popular Forms