Written by: Annette Clark,
Michigan Legislature Accelerates Individual Income Tax Rate Reduction
Individual Income Tax Personal Exemption Amount Increased
Public Act 223 of 2012, effective June 29, 2012, will accelerate a scheduled personal income tax rate reduction. The rate will be reduced from 4.35% to 4.25% on October 1, 2012, instead of January 1, 2013.
Public Act 224 of 2012, effective June 29, 2012, will increase the Michigan personal income tax exemption amount to $3,950 from $3,700, beginning October 1, 2012. The amount for the 2012 tax year will be annualized. Beginning January 1, 2014, the exemption will be $4,000. The exemption will continue to be multiplied by the number of personal or dependency exemptions allowed on the taxpayer’s federal income tax return.