Michigan Earns High Marks for Business Tax Climate

If you are a business owner in Michigan, pat yourself on the back. You are doing business in one of best states in the nation for business, and that climate is continuing to improve year after year. If you’re a business owner but not operating in Michigan, you might want to remedy that situation by either moving your company to the Great Lakes State or consider expanding operations to include facilities here.

The Michigan Economic Development Corporation tells us today that Michigan has once again ranked among the top states for doing business, this time coming in 12th in the Tax Foundation’s 2020 State Business Tax Climate Index.

That’s a bump up five spots from last year, making Michigan one of only two states in the Midwest to be in the top half of the rankings. Combined with a cost of living that is 10-percent below the national average, Michigan has repeatedly earned its reputation as a business-friendly state.

Designed to show how well states structure their tax systems, the Tax Climate Index is based on five components including:

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  • Individual income tax
  • Sales tax
  • Corporate income tax
  • Property tax
  • Unemployment insurance tax

Compared to 2018, Michigan showed the most improvement in the unemployment insurance tax component, moving up 32 spots to #17. The state also rose up 10 spots in the rankings for sales tax from #19 to #9.

Josh Hundt is the Executive Vice President and Chief Business Development Officer for the MEDC. He says, “The business environment we have created here in Michigan, including a favorable tax climate, provides a recipe for success as companies are looking to expand their operations here in the state.”  Hundt adds, “From a competitive cost of doing business – reaffirmed by this most recent Business Tax Climate Index ranking –to a high quality of life that still costs 10 percent less than the national average, Michigan is making a compelling case for growth.”

These are just the most recent accolades the state has received. In other good news, Site Selection just released the 2019 Business Climate Rankings. Overall Michigan rose in the rankings to #16 from #18 in 2018.

50-percent of the ranking is based on a survey of corporate site selectors through their Executive Survey. For the executive survey rank, Michigan improved seven spots, indicating an increasingly positive experience for site selectors doing business in Michigan. In the survey, participants were asked to rank the states based on their recent experience of locating facilities in them.

Additionally, Michigan was recently ranked #4 nationally on the list of top states for manufacturing employment  in Business Facilities 15th annual Rankings Report, and was recognized for its excellence in economic development by the International Economic Development Council (IEDC) with five IEDC Excellence in Economic Development Awards.

Together, these types of acknowledgements further underscore the state’s strong economic growth and effective business attraction and job creation efforts. Big changes are taking place in the world and once again Michigan is at the forefront.

To see why companies are choosing Michigan, click the link below:


To learn more about the services available from the MEDC to help businesses grow, go to this link:


To drill down to the option of doing business in Michigan’s Great Southwest, visit this link:


The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and their initiatives, visit online at www.MichiganBusiness.org.