Taxes in Commerce Township, Michigan
Complete tax guide for Commerce Township, MI. State income tax up to 4.25%, 1.6% property tax, 6.78% sales tax. Calculate your total tax burden.
State Income Tax
4.25%
Michigan
Property Tax
1.6%
Effective rate
Sales Tax
6.78%
Combined rate
Tax Burden
Moderate
Commerce Township, MI Tax Overview
Population
40,186
Median Income
$49,300
Cost of Living
85.3 (100 = avg)
State Income Tax
4.25%
Local Income Tax
1.98%
Median Home Price
$192,000
Commerce Township Tax Calculator
Pre-filled with Commerce Township median: $49,300
Total Tax Burden in Commerce Township
$10,720
Take-Home: $38,580 · Effective Rate: 21.75%
Federal Tax
$3,878
7.87% eff.
MI State + Local
$3,071
6.23% eff.
FICA
$3,771
7.65% eff.
Take-Home
$38,580
78.25% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $49,300.00 | $4,108.33 |
| Federal Income Tax | -$3,877.50 | -$323.13 |
| Michigan State Tax | -$2,095.25 | -$174.60 |
| Commerce Township Local Tax (1.98%) | -$976.14 | -$81.34 |
| Social Security (6.2%) | -$3,056.60 | -$254.72 |
| Medicare (1.45%) | -$714.85 | -$59.57 |
| Take-Home Pay | $38,579.66 | $3,214.97 |
Property Tax in Commerce Township
Median Home
$192,000
Annual Tax
$3,072
Monthly Tax
$256
Effective Rate
1.6%
Sales Tax in Commerce Township
Combined Rate
6.78%
State Portion
~4.3%
Local Portion
~2.5%
The combined sales tax rate in Commerce Township is 6.78%, which is below the national average of 7.12%. On a $100 purchase, you would pay $6.78 in sales tax.
Tax Burden Comparison
| Tax Type | Commerce Township | Michigan Avg | National Avg |
|---|---|---|---|
| Income Tax | 4.25% + 1.98% | 4.25% | 4.6% |
| Property Tax | 1.6% | ~1.6% | 1.1% |
| Sales Tax | 6.78% | ~6.78% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Commerce Township Residents
- Michigan's income tax rate of 4.25% is competitive. You may still benefit from maximizing 401(k) contributions ($23,500 limit) to reduce your taxable income at both state and federal levels.
- Commerce Township has a local income tax of 1.98%. If you work remotely, verify whether you owe city tax based on where you work or where you live. Some cities only tax people who work within city limits.
- Property tax in Commerce Township (1.6%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
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Very LowCalculate Your Full Michigan Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Commerce Township, MI?
Commerce Township, Michigan has a state income tax rate up to 4.25%, plus a local income tax of 1.98%. The property tax rate is 1.6% and the combined sales tax rate is 6.78%.
How much is property tax in Commerce Township?
The effective property tax rate in Commerce Township is 1.6%. On the median home price of $192,000, this equals approximately $3,072 per year or $256 per month. This is above the national average of 1.1%.
What is the sales tax rate in Commerce Township?
The combined sales tax rate in Commerce Township is 6.78%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Commerce Township's tax burden compare to other cities?
Commerce Township has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 29.7%. The combination of 4.25% state income tax, 1.6% property tax, and 6.78% sales tax determines the total burden. Cost of living index is 85.3 (100 = national average).
Are there any local taxes in Commerce Township?
Yes. Commerce Township imposes a local income tax of 1.98% in addition to the state income tax of 4.25%.