LANSING, Mich. (AP) -- The state income tax increase approved by the Legislature takes effect tomorrow.
As part of the budget deal reached early last week, the income tax rate is going from 3.9 percent to 4.35 percent. If you and your spouse have two kids and $73,000 a year in income, you'll pay an additional $260.
Analysts say that even at 4.35 percent, 36 other states have higher income tax rates. And the new rate is below what was charged from 1975 through 1999, when it was 4.4 percent or higher.
The income tax boost was part of a deal to cover a 1.75 billion-dollar deficit in the new fiscal year. More money will be raised when an expanded sales tax takes effect December 1st.