Michigan vs Indiana Taxes: Income, Property & Sales

Does Michigan or Indiana have lower taxes? We answer that in a variety of ways below:

Michigan vs Indiana Income Tax Comparison

	Michigan	Indiana
Income Tax Rates & Thresholds	4.25%	3.23%
Median Income	$68,990	$70,030
Income Tax Paid On Median Household Income	$10,665	$10,404
Income After Tax Based on Median Household Income	$58,325	$59,626

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Michigan vs Indiana Property Tax Comparison

	Michigan	Indiana
Average Property Tax Rate	1.06%	0.74%
Average House Price By State	$233,019	$232,390
Average Property Tax Owed Per Year	$2,470	$1,720
Income After Income Taxes & Property Taxes Based On Median State Household Income	$55,855	$57,906

Michigan vs Indiana Sales Tax Comparison

	Michigan	Indiana
Average State Sales Tax	6.00%	7.00%
Average Local Sales Tax Across the State	0.00%	0.00%
Average Combined Sales Tax Rate	6.00%	7.00%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$3,162	$3,788
Maximum Disposable Income Based on Median Household Income	$52,693	$54,118

After Tax Comparison Earning $40,000 Per Year Filing As Single

	Michigan	Indiana
Income Tax Owed	$4,528	$4,300
After Tax Income	$35,472	$35,700
Income After Income & Property Tax	$33,002	$33,980
Maximum Disposable Income After Income, Property & Sales Taxes	$31,134	$31,757

After Tax Comparison Earning $60,000 Per Year Filing As Single

	Michigan	Indiana
Income Tax Owed	$8,305	$7,873
After Tax Income	$51,695	$52,127
Income After Income & Property Tax	$49,225	$50,407
Maximum Disposable Income After Income, Property & Sales Taxes	$46,439	$47,110

After Tax Comparison Earning $80,000 Per Year Filing As Single

	Michigan	Indiana
Income Tax Owed	$13,555	$12,919
After Tax Income	$66,445	$67,081
Income After Income & Property Tax	$63,975	$65,361
Maximum Disposable Income After Income, Property & Sales Taxes	$60,354	$61,085

After Tax Comparison Earning $100,000 Per Year Filing As Single

	Michigan	Indiana
Income Tax Owed	$18,805	$17,965
After Tax Income	$81,195	$82,035
Income After Income & Property Tax	$78,725	$80,315
Maximum Disposable Income After Income, Property & Sales Taxes	$74,269	$75,061

After Tax Comparison Earning $100,000 Per Year Filing As Married Filing Jointly

	Michigan	Indiana
Income Tax Owed	$12,306	$11,646
After Tax Income	$87,694	$88,354
Income After Income & Property Tax	$85,224	$86,634
Maximum Disposable Income After Income, Property & Sales Taxes	$80,400	$80,967

After Tax Comparison Earning $150,000 Per Year Filing As Married Filing Jointly

	Michigan	Indiana
Income Tax Owed	$24,486	$23,316
After Tax Income	$125,514	$126,684
Income After Income & Property Tax	$123,044	$124,964
Maximum Disposable Income After Income, Property & Sales Taxes	$116,079	$116,789

After Tax Comparison Earning $200,000 Per Year Filing As Married Filing Jointly

	Michigan	Indiana
Income Tax Owed	$37,611	$35,931
After Tax Income	$162,389	$164,069
Income After Income & Property Tax	$159,919	$162,349
Maximum Disposable Income After Income, Property & Sales Taxes	$150,867	$151,728

After Tax Comparison Earning $250,000 Per Year Filing As Married Filing Jointly

	Michigan	Indiana
Income Tax Owed	$51,655	$49,465
After Tax Income	$198,345	$200,535
Income After Income & Property Tax	$195,875	$198,815
Maximum Disposable Income After Income, Property & Sales Taxes	$184,788	$185,809

FAQ

Does Michigan or Indiana have lower income taxes?

Michigan’s income tax falls into the following range: 4.25%

Whereas Indiana’s income tax is the following 3.23%

Does Michigan or Indiana have lower property taxes?

Michigan has an average property tax rate of 1.06%

In comparison, Indiana has an average property tax rate of 0.74%

Does Michigan or Indiana have lower sales taxes?

Michigan has a state sales tax rate of 6.00% and an average local rate of 0.00% for a combined total rate of 6.00%.

In contrast, Indiana has a state sales tax rate of 7.00% and an average local rate of 0.00% for a combined total rate of 7.00%.

Do you get to keep more money in Michigan or Indiana?

Based on median household income after income, property and sales taxes Michigan gives you a maximum amount of disposable income of $52,693

In comparison, Indiana gives you $54,118.

More Comparisons:

Michigan vs Missouri
Michigan vs Maryland
Michigan vs Wisconsin
Michigan vs Colorado
Michigan vs Minnesota

Sources:

https://en.wikipedia.org/wiki/State_income_tax#Rates_by_jurisdiction

https://www.bankrate.com/real-estate/property-tax-by-state/#by-state

https://fred.stlouisfed.org/release/tables?eid=259515&rid=249

https://www.fool.com/the-ascent/research/average-house-price-state/

https://taxfoundation.org/data/all/state/2022-sales-taxes/

https://www.forbes.com/advisor/income-tax-calculator/