How Michigan compares
Ranked against the other 49 states on the figures we hold. Rates that combine state and local components — sales tax, the minimum wage where it varies by region — are shown on this page but not ranked, because a single number would misstate them.
| Figure | MI | Nationally | In its region |
|---|---|---|---|
| PopulationUS Census Bureau, Vintage 2025 estimates, July 1, 2025 | 10,127,884 | 10th highest of 50 | 3 of 12 |
| GDP ($bn)Bureau of Economic Analysis, 2025 | 730.1 | 14th highest of 50 | 3 of 12 |
| Median household incomeUS Census Bureau, ACS 2024 1-year, 2024 | $72,389 | 37th highest of 50 | 9 of 12 |
| Unemployment rateBureau of Labor Statistics, LAUS (seasonally adjusted, preliminary), September 2026 | 5.0% | tied 47th lowest of 50 | 12 of 12 |
| Foreign-born shareUS Census Bureau, ACS 2024 1-year, 2024 | 7.7% | tied 27th highest of 50 | 5 of 12 |
| Property tax ratechecked Nov 2026; confirm with the Michigan legislature | 1.32% | 36th lowest of 50 | 6 of 12 |
| Deposit return window (days)checked Nov 2026; confirm with the Michigan legislature | 30 | tied 15th lowest of 50 | 4 of 12 |
| Eviction notice (days)checked Nov 2026; confirm with the Michigan legislature | 7 | tied 19th highest of 50 | 3 of 12 |
| Final pay deadline (days)checked Nov 2026; confirm with the Michigan legislature | 14 | tied 26th lowest of the 29 states that set one | 6 of 8 |
- State income tax: yes41 of 50 states answer the same way
- At-will employment: yesthe same in all 50 states — it does not set Michigan apart
- Paid sick leave required: yes20 of 50 states answer the same way
- Paid family leave: no38 of 50 states answer the same way
- Workers' comp required: yes49 of 50 states answer the same way
- Rent control permitted: no46 of 50 states answer the same way
- Annual report required: yes43 of 50 states answer the same way
Statistical figures: US Census Bureau, Vintage 2025 estimates (July 1, 2025) · US Census Bureau, ACS 2024 1-year (2024) · Bureau of Economic Analysis (2025) · Bureau of Labor Statistics, LAUS (seasonally adjusted, preliminary) (September 2026) · SBA Office of Advocacy, 2025 Small Business Profiles (2025). Tax, wage, business and tenancy figures are recorded from state sources and were last checked on 2026-11-05 — confirm anything you are about to act on with the Michigan legislature.
What's changing in Michigan
Enacted changes with a fixed effective date. Contracts, payroll and leases signed now may run past these dates.
Coming up
- January 1, 2027Minimum wage rises to $15.00/hr
Tipped wage $6.30 (42% of the full rate), rising toward 50% by 2031.
Source ↗
Took effect in the last 12 months
- January 1, 2026Minimum wage rose to $13.73/hrSource ↗
Checked against official sources on 2026-11-05.
How long you have in Michigan
The periods that decide whether something is on time. Days are calendar days unless the underlying rule says otherwise.
- Return a security deposit within
- 30 days
- Eviction notice before filing
- 7 days
- Final paycheck within
- 14 days
- LLC formation processed in
- 5-7 business days
- Annual report due
- February 15 each year
- Overtime starts after
- 40 hrs/week
AI Legal Insights — Michigan
AI-generated · Updated July 2026
Michigan operates under a dual court system consisting of district and circuit courts, with the Michigan Supreme Court serving as the highest authority. The state is known for robust consumer protection laws and specific statutes governing the automotive industry and manufacturing liability.
Michigan offers a diverse economic landscape driven by the automotive, manufacturing, and agricultural sectors. While the state maintains a flat income tax, businesses must navigate specific regulatory requirements related to labor and environmental standards common in the Great Lakes region.
Michigan hosts a diverse immigrant population, particularly in metropolitan areas like Detroit and Grand Rapids, contributing significantly to its manufacturing and healthcare workforces. While there are no statewide sanctuary laws, local municipalities vary in their approach to immigrant integration and community support services.
- ›Ensure all real estate contracts comply with Michigan'<pad><pad>定律 regarding disclosures and<pad><pad><pad>定律 regarding the Statute of Frauds.
- ›Include specific language regarding Michigan's unique 'open<pad>' consumer protection statutes to mitigate litigation risks.
- ›Verify that dispute resolution clauses specify Michigan as the exclusive venue to leverage local judicial familiarity.
AI-generated insights · Verify with a licensed attorney before relying on this information.
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Employment Laws
Michigan labor regulations
Michigan is an at-will employment state. The minimum wage is $13.73/hr in 2026 and rises to $15.00/hr on January 1, 2027. Under the Earned Sick Time Act, employers with 11 or more employees have had to provide paid sick time since February 21, 2025, and smaller employers since October 1, 2025. There is no state paid family leave program.
| Law | MI Rule | Federal Floor |
|---|---|---|
| Minimum Wage | $13.73/hr since January 1, 2026; rises to $15.00/hr on January 1, 2027 | $7.25/hr |
| Tipped Minimum Wage | $5.49/hr cash wage in 2026 (40% of the full rate); $6.30/hr from January 1, 2027, rising toward 50% by 2031; tips must bring pay up to the full minimum | $2.13/hr cash wage |
| Overtime | After 40 hrs/week at 1.5× the regular rate | FLSA: after 40 hrs/week at 1.5× rate |
| Paid Sick Leave | Earned Sick Time Act: 1 hr per 30 hrs worked; employers with 11+ employees since Feb 21, 2025 (up to 72 hrs/yr); employers with 10 or fewer since Oct 1, 2025 (may cap use at 40 hrs/yr) | No federal mandate |
| Paid Family Leave | No state paid family leave program; federal FMLA applies | FMLA: 12 weeks unpaid for qualifying employees |
| Workers Compensation | Required for employers with 3+ employees, or with 1+ employee working 35+ hrs/week for 13+ weeks | Federal workers' comp for federal employees only |
| At-Will Employment | Yes — employer or employee may end employment at any time for any lawful reason | Default nationwide; exceptions for protected classes |
| Final Paycheck | Generally due by the next regularly scheduled payday after termination or resignation | No federal deadline |
| Meal & Rest Breaks | Minors under 18 must get a 30-minute break after more than 5 continuous hours; no state requirement for adults | No federal requirement for adults; short rest breaks (20 min or less) must be paid |
- Employers with 11+ employees must allow up to 72 hours of paid sick time a year; employers with 10 or fewer may cap paid use at 40 hours.
- The tipped minimum wage rises to $6.30/hr in 2027 and continues stepping up toward 50% of the full minimum wage by 2031.
Sources: U.S. Department of Labor state minimum wage table · state labor agencies (checked Nov 2026)
Landlord-Tenant Laws
Michigan rental regulations
Michigan caps security deposits at 1.5 months' rent. Landlords must send an itemized list of damages within 30 days of move-out or return the full deposit. Some cities, including Detroit, add local rental rules.
| Topic | MI Rule |
|---|---|
| Security Deposit Limit | Maximum 1.5 months' rent |
| Deposit Notice | Within 14 days of move-in, the landlord must give the tenant written notice of the landlord's name and address and where the deposit is held; the tenant must provide a forwarding address within 4 days of moving out |
| Move-In Inventory | Landlords must give tenants inventory checklists at move-in so the condition of the unit can be documented |
| Deposit Return | Within 30 days of move-out with an itemized list of deductions; a landlord who misses the 30-day list forfeits the right to keep any part of the deposit |
| Rent Control | State law bars cities and counties from enacting rent control |
| Eviction Notice (Non-Payment) | 7-day written demand for possession for non-payment before the landlord may file in district court |
| Ending a Month-to-Month Tenancy | Written notice of at least one full rental period (one month for a month-to-month tenancy) |
| Habitability & Repairs | Landlord must keep the premises fit for the intended use and in reasonable repair, and comply with health and safety codes |
| No Self-Help Eviction | Landlords may not change locks, remove belongings, or shut off utilities to force a tenant out; removal requires a court order |
| Retaliation Protection | Landlord may not raise rent, cut services, or evict in retaliation for a tenant exercising lawful rights, such as complaining to a housing authority |
Both landlords and tenants have enforceable rights under Michigan law. Document all communications and keep copies of your lease agreement. Use AI review to spot risky clauses before signing.
Starting a Business
Michigan LLC formation guide
Michigan imposes a flat 4.25% individual income tax and a 6% corporate income tax (CIT) on C corporations; LLCs taxed as pass-through entities do not pay CIT. The state is a hub for automotive, advanced manufacturing, and life sciences. Filing an LLC costs $50, and LLCs file an annual statement by February 15 with a $25 fee, which keeps ongoing costs low. Employers should plan for the minimum wage rising from $13.73 to $15.00 on January 1, 2027.
Step-by-step LLC formation
- 1Choose a business name — must include "LLC," "L.L.C.," or "Limited Liability Company"; check availability with the Department of Licensing and Regulatory Affairs (LARA)
- 2File Articles of Organization (Form CSCL/CD-700) with LARA online or by mail
- 3Pay the $50 filing fee (online filings are usually processed in 5–7 business days; expedited service is available)
- 4Designate a registered agent with a physical Michigan address
- 5Obtain an Employer Identification Number (EIN) from the IRS — free at irs.gov
- 6File the annual statement by February 15 each year with the $25 fee; LLCs that do not file fall out of good standing
- 7Register with the Michigan Department of Treasury for sales tax, use tax, and withholding, and with the Unemployment Insurance Agency if hiring employees
- 8Open a business bank account using your EIN and filed Articles of Organization
Every LLC also needs a free EIN from the IRS (Form SS-4). Apply online at irs.gov — takes about 15 minutes and is required to open a business bank account.
Popular IRS Forms
Most-filed federal forms for Michigan taxpayers
Fill these out online with plain-English guidance — every field explained, no accountant required. Download as a ready-to-file PDF when done.
The main annual federal income tax return every taxpayer files.
Fill out free →Give your SSN or EIN to a client before getting paid as a contractor.
Fill out free →Report $600+ paid to independent contractors during the year.
Fill out free →Tell your employer how much federal tax to withhold from pay.
Fill out free →Report income and expenses from a sole proprietorship or LLC.
Fill out free →Report payroll taxes withheld from employees each quarter.
Fill out free →Get an automatic 6-month extension to file your 1040.
Fill out free →The year-end wage statement employers issue to each employee.
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Federal Offices
United States government offices in Michigan
Walk-in assistance by appointment only. Call (844) 545-5640 to schedule, or book online at irs.gov.
Immigration appointments via my.uscis.gov or call (800) 375-5283.
Free Legal Aid
Michigan legal assistance organizations
These organizations provide free or reduced-cost civil legal services to qualifying Michigan residents.
Free civil and criminal legal services for low-income residents of Detroit and Wayne County
Statewide self-help legal information and guided interviews for Michigan residents
Free civil legal services for low-income individuals in southeast Michigan and Thumb region
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