Taxes in Holland, Michigan
Complete tax guide for Holland, MI. State income tax up to 4.25%, 1.56% property tax, 7.8% sales tax. Calculate your total tax burden.
State Income Tax
4.25%
Michigan
Property Tax
1.56%
Effective rate
Sales Tax
7.8%
Combined rate
Tax Burden
Moderate
Holland, MI Tax Overview
Population
33,051
Median Income
$59,900
Cost of Living
82.2 (100 = avg)
State Income Tax
4.25%
Local Income Tax
0.76%
Median Home Price
$232,000
Holland Tax Calculator
Pre-filled with Holland median: $59,900
Total Tax Burden in Holland
$12,733
Take-Home: $47,167 · Effective Rate: 21.26%
Federal Tax
$5,150
8.60% eff.
MI State + Local
$3,001
5.01% eff.
FICA
$4,582
7.65% eff.
Take-Home
$47,167
78.74% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $59,900.00 | $4,991.67 |
| Federal Income Tax | -$5,149.50 | -$429.13 |
| Michigan State Tax | -$2,545.75 | -$212.15 |
| Holland Local Tax (0.76%) | -$455.24 | -$37.94 |
| Social Security (6.2%) | -$3,713.80 | -$309.48 |
| Medicare (1.45%) | -$868.55 | -$72.38 |
| Take-Home Pay | $47,167.16 | $3,930.60 |
Property Tax in Holland
Median Home
$232,000
Annual Tax
$3,619
Monthly Tax
$302
Effective Rate
1.56%
Sales Tax in Holland
Combined Rate
7.8%
State Portion
~5.3%
Local Portion
~2.5%
The combined sales tax rate in Holland is 7.8%, which is above the national average of 7.12%. On a $100 purchase, you would pay $7.80 in sales tax.
Tax Burden Comparison
| Tax Type | Holland | Michigan Avg | National Avg |
|---|---|---|---|
| Income Tax | 4.25% + 0.76% | 4.25% | 4.6% |
| Property Tax | 1.56% | ~1.56% | 1.1% |
| Sales Tax | 7.8% | ~7.8% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Holland 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.
- Holland has a local income tax of 0.76%. 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 Holland (1.56%) 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.
Other Cities in Michigan
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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 Holland, MI?
Holland, Michigan has a state income tax rate up to 4.25%, plus a local income tax of 0.76%. The property tax rate is 1.56% and the combined sales tax rate is 7.8%.
How much is property tax in Holland?
The effective property tax rate in Holland is 1.56%. On the median home price of $232,000, this equals approximately $3,619 per year or $302 per month. This is above the national average of 1.1%.
What is the sales tax rate in Holland?
The combined sales tax rate in Holland is 7.8%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Holland's tax burden compare to other cities?
Holland has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 28.6%. The combination of 4.25% state income tax, 1.56% property tax, and 7.8% sales tax determines the total burden. Cost of living index is 82.2 (100 = national average).
Are there any local taxes in Holland?
Yes. Holland imposes a local income tax of 0.76% in addition to the state income tax of 4.25%.