Texas vs Michigan Taxes: Income, Property & Sales

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

Texas vs Michigan Income Tax Comparison

	Texas	Michigan
Income Tax Rates & Thresholds	None	4.25%
Median Income	$74,640	$68,990
Income Tax Paid On Median Household Income	$9,189	$10,665
Income After Tax Based on Median Household Income	$65,451	$58,325

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Texas vs Michigan Property Tax Comparison

	Texas	Michigan
Average Property Tax Rate	1.25%	1.06%
Average House Price By State	$305,497	$233,019
Average Property Tax Owed Per Year	$3,819	$2,470
Income After Income Taxes & Property Taxes Based On Median State Household Income	$61,632	$55,855

Texas vs Michigan Sales Tax Comparison

	Texas	Michigan
Average State Sales Tax	6.25%	6.00%
Average Local Sales Tax Across the State	1.95%	0.00%
Average Combined Sales Tax Rate	8.20%	6.00%
Maximum Amount of Sales Tax Paid Based on Median Household Income	$4,671	$3,162
Maximum Disposable Income Based on Median Household Income	$56,961	$52,693

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

	Texas	Michigan
Income Tax Owed	$3,040	$4,528
After Tax Income	$36,960	$35,472
Income After Income & Property Tax	$33,141	$33,002
Maximum Disposable Income After Income, Property & Sales Taxes	$30,630	$31,134

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

	Texas	Michigan
Income Tax Owed	$5,968	$8,305
After Tax Income	$54,032	$51,695
Income After Income & Property Tax	$50,213	$49,225
Maximum Disposable Income After Income, Property & Sales Taxes	$46,408	$46,439

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

	Texas	Michigan
Income Tax Owed	$10,368	$13,555
After Tax Income	$69,632	$66,445
Income After Income & Property Tax	$65,813	$63,975
Maximum Disposable Income After Income, Property & Sales Taxes	$60,826	$60,354

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

	Texas	Michigan
Income Tax Owed	$14,768	$18,805
After Tax Income	$85,232	$81,195
Income After Income & Property Tax	$81,413	$78,725
Maximum Disposable Income After Income, Property & Sales Taxes	$75,243	$74,269

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

	Texas	Michigan
Income Tax Owed	$8,481	$12,306
After Tax Income	$91,519	$87,694
Income After Income & Property Tax	$87,700	$85,224
Maximum Disposable Income After Income, Property & Sales Taxes	$81,054	$80,400

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

	Texas	Michigan
Income Tax Owed	$18,536	$24,486
After Tax Income	$131,464	$125,514
Income After Income & Property Tax	$127,645	$123,044
Maximum Disposable Income After Income, Property & Sales Taxes	$117,972	$116,079

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

	Texas	Michigan
Income Tax Owed	$29,536	$37,611
After Tax Income	$170,464	$162,389
Income After Income & Property Tax	$166,645	$159,919
Maximum Disposable Income After Income, Property & Sales Taxes	$154,016	$150,867

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

	Texas	Michigan
Income Tax Owed	$41,455	$51,655
After Tax Income	$208,545	$198,345
Income After Income & Property Tax	$204,726	$195,875
Maximum Disposable Income After Income, Property & Sales Taxes	$189,211	$184,788

FAQ

Does Texas or Michigan have lower income taxes?

Texas’s income tax falls into the following range: None

Whereas Michigan’s income tax is the following 4.25%

Does Texas or Michigan have lower property taxes?

Texas has an average property tax rate of 1.25%

In comparison, Michigan has an average property tax rate of 1.06%

Does Texas or Michigan have lower sales taxes?

Texas has a state sales tax rate of 6.25% and an average local rate of 1.95% for a combined total rate of 8.20%.

In contrast, 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%.

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

Based on median household income after income, property and sales taxes Texas gives you a maximum amount of disposable income of $56,961

In comparison, Michigan gives you $52,693.

More Comparisons:

Texas vs New Jersey
Texas vs Virginia
Texas vs Washington
Texas vs Arizona
Texas vs Tennessee

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/