Calculate your federal and Michigan capital gains tax liability
Calculate Your
Michigan Capital Gains Tax
Michigan taxes capital gains at a flat rate of 4.25%. Some cities also levy a local income tax.
Advertisement Space
Michigan Capital Gains Tax Highlights
Enter Your Investment Details
Calculate your capital gains tax for Michigan
📊 Enter your annual taxable income before including this capital gain. This determines your capital gains tax bracket.
📊 Choose your investment holding period
Calculator optimized for Michigan tax rates
Tax Calculation Results
How Michigan Taxes Capital Gains
Michigan taxes capital gains at a flat rate of 4.25%. Some cities also levy a local income tax.
2025 Tax Brackets
Michigan Tax Details
Tax Rate Structure
Michigan applies a flat rate to all capital gains regardless of income level.
Key Requirements
Michigan Tax Strategies
- • Consider timing of asset sales for tax efficiency
- • Coordinate with federal capital gains strategies
- • Review loss harvesting opportunities
• Consult with Michigan tax professional for complex situations
Related Tax Services
Real Estate in Michigan
Real estate capital gains in Michigan are subject to both federal and state tax considerations:
Michigan Real Estate Tax Rate
Real estate capital gains in Michigan are taxed at a flat rate up to 4.25%.
Primary Residence
Federal Rules
Michigan State Rules
State tax applies to gain above federal exclusion
Must file state return if gain exceeds exclusion
Additional Requirements:
- • Follows federal IRC Section 121.
Investment Property
Tax Deferral Strategies
1031 Like-Kind Exchanges
Defer federal taxes on investment property exchanges
Transfer Costs
Transfer Tax
Local Variations:
- • Counties can add an additional $0.55 per $500.
Available Exemptions:
- • Certain family transfers
- • Transfers to secure a debt.
Recording Fees
Additional Fees:
- • Uniform fee statewide.
Special Deductions & Notes:
- • Standard federal depreciation rules apply.
Investment & Tax Services
Property Tax Exemptions
Homestead
$0K
Maximum exemption
Senior (65+)
$0K
Additional exemption
Michigan Real Estate Specifics
• Michigan levies both a state and a county-level Real Estate Transfer Tax, paid by the seller.
• The Principal Residence Exemption (PRE) is a key benefit, exempting homeowners from paying a significant portion of school property taxes.
• 24 Michigan cities (including Detroit and Grand Rapids) levy their own income tax.
Real Estate & Investment Services
Michigan Filing Requirements
Due Dates
Required Forms
- • Form MI-1040
- • Capital gains schedule
- • Federal Form 8949 & Schedule D
Payment Options
- • Online payment portal
- • Electronic funds transfer
- • Check or money order
Tax Professional Services
Tax Calculation Results
Advertisement
Advertisement Space