LANSING, Mich. (WLNS) – Michiganders will be paying a little less income tax for the 2023 tax year.

Michigan Treasurer Rachel Eubanks announced Wednesday that the state’s income tax will decrease to 4.05% for one year.

The change was enacted due to Michigan’s low unemployment rate, strong business growth and strong economy, Eubanks’ office said in a statement.

“Michigan’s strong economic position has led to a reduction in the state income tax from 4.25% to 4.05% for 2023,” said Eubanks. “When Michiganders file their 2023 state income taxes in 2024, they will see the rate adjustment in the form of less tax owed or a larger refund.”  

In 2015, Michigan enacted a law that requires a temporary reduction in state income tax if the general fund grew faster than the rate of inflation.

This cut will save the average Michigander $50.