Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Michigan.

February 24, 2026

Michigan Court Upholds In State Sourcing of Electricity Sales

Authored by: Brian Meier, MSA and Katie Nguyen, CPA

A recent unpublished Michigan Court of Appeals decision held that wholesale electricity sales delivered to a regional transmission operator within the state must be treated as Michigan sourced sales, even if the power is ultimately consumed elsewhere. Because the purchaser takes ownership at Michigan interconnection points, the court ruled that sourcing is determined at the point of delivery rather than the electricity’s eventual destination. The court further concluded that this approach aligns with constitutional requirements and does not unfairly assign income to Michigan.

If you have questions about state revenue sourcing, please reach out to a member of the Withum SALT Team.

May 13, 2025

Michigan Income Tax Rates for Individuals and Fiduciaries for Tax Year 2025

Authored by: Courtney Easterday, MSA and Joe Petrucci

The Michigan Department of Treasury announced that the individual and fiduciary income tax rate for tax year 2025 will remain at 4.25%. Although state law allows for a rate reduction based on a revenue growth formula tied to inflation, the required conditions were not met. Therefore, the current rate remains unchanged.

If you have questions about state personal income tax rate changes, please reach out to a member of the Withum SALT Team.

November 4, 2024

Michigan Rescinds Rule on Food for Home Consumption

Authored by: Breea Boylan, CPA and Courtney Easterday, MSA

Effective September 17, 2024, the Michigan Department of Treasury has rescinded Rule 86 of the Mich. Admin. Code R205.136 relating to specific sales and use tax rules. Rule 86 elaborated on the sales tax treatment of food for human consumption. Rule 86 had been superseded in part by Emagine Entertainment v Treasury, 334 Mich App 658 (2020). The Department has since replaced RAB 2022-4 with RAB 2024-13.

Per RAB 2024-13, food for human consumption may be taxable when:

It is heated by the seller and sold in a heated state;
Contains two or more ingredients mixed by the seller and is sold as a single item; and/or,
Sold with eating utensils provided by the seller.

If you have questions about whether your business needs to collect and remit sales tax, please reach out to a member of the Withum SALT Team.

Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.