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HB4170 • 2026

Individual income tax: rate; rollback of rate to 4.05% and effect of a triggering rate reduction; provide for, and clarify permanency. Amends sec. 51 of 1967 PA 281 (MCL 206.51).

Individual income tax: rate; rollback of rate to 4.05% and effect of a triggering rate reduction; provide for, and clarify permanency. Amends sec. 51 of 1967 PA 281 (MCL 206.51).

Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Kathy Schmaltz (District 46), Joseph Pavlov (District 64), Douglas Wozniak (District 59), Cameron Cavitt (District 106), Gregory Markkanen (District 110), Jay DeBoyer (District 63), Mike Mueller (District 72), Mike Hoadley (District 99), Steve Frisbie (District 44), Alicia St. Germaine (District 62), James DeSana (District 29), David Prestin (District 108), Nancy DeBoer (District 86), John Roth (District 104), Steve Carra (District 36), Timothy Beson (District 96), Jamie Thompson (District 28), Angela Rigas (District 79), Parker Fairbairn (District 107), Ken Borton (District 105), William Bruck (District 30), Rylee Linting (District 27), Tom Kunse (District 100), Curtis VanderWall (District 102)
Last action
2025-03-20
Official status
REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION
Effective date
Not listed

Plain English Breakdown

The official source material does not provide enough information to confirm that the reduced tax rate will be permanently set at 4.05%. The bill summary and digest text do not mention permanency.

Lowering Income Tax Rate

This law would reduce the individual income tax rate to 4.05% and make sure it stays that way.

What This Bill Does

  • Reduces the current individual income tax rate to 4.05%
  • Clarifies how a future reduction in the tax rate will work

Who It Names or Affects

  • People who pay individual income taxes

Terms To Know

Individual Income Tax Rate
The percentage of money taken from people's earnings as a tax

Limits and Unknowns

  • It is not clear what the current rate is before it is reduced to 4.05%
  • This bill has not yet been passed into law and needs further steps in the legislative process.

Bill History

  1. 2025-03-20 SJ 27 Pg. 267

    PASSED BY HOUSE WITH IMMEDIATE EFFECT

  2. 2025-03-20 SJ 27 Pg. 267

    REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION

  3. 2025-03-18 HJ 28 Pg. 262

    read a second time

  4. 2025-03-18 HJ 28 Pg. 262

    placed on third reading

  5. 2025-03-18 HJ 28 Pg. 269

    placed on immediate passage

  6. 2025-03-18 HJ 28 Pg. 269

    read a third time

  7. 2025-03-18 HJ 28 Pg. 269

    passed; given immediate effect Roll Call #32 Yeas 65 Nays 43 Excused 0 Not Voting 2

  8. 2025-03-18 HJ 28 Pg. 269

    transmitted

  9. 2025-03-11 HJ 25 Pg. 210

    reported with recommendation without amendment

  10. 2025-03-11 HJ 25 Pg. 210

    referred to second reading

  11. 2025-03-06 HJ 24 Pg. 202

    bill electronically reproduced 03/05/2025

  12. 2025-03-05 HJ 23 Pg. 192

    introduced by Representative Rep. Kathy Schmaltz

  13. 2025-03-05 HJ 23 Pg. 192

    read a first time

  14. 2025-03-05 HJ 23 Pg. 192

    referred to Committee on Finance

Official Summary Text

Individual income tax: rate; rollback of rate to 4.05% and effect of a triggering rate reduction; provide for, and clarify permanency. Amends sec. 51 of 1967 PA 281 (MCL 206.51).