Michigan Business Tax

Beginning with the 2010 tax year, Michigan will have an enforced Michigan Business Tax (MBT) e-file mandate.

Developers producing MBT tax preparation software and computer-generated forms must support e-file for all eligible Michigan forms that are included in their software package. All eligible MBT returns prepared using tax preparation software or computer-generated forms must be e-filed.

Treasury will not process computer-generated paper returns that are eligible to be e-filed. A notice will be mailed to the taxpayer indicating that their return was not filed in the proper form and content and must be e-filed. Payment received with a paper return will be processed and credited to the taxpayer's account even when the return is not processed.

Additional information will be published on Treasury's Web site as it becomes available. E-file information is available at www.MIfastfile.org.

MBT Details

The Michigan Business Tax (MBT), which was signed into law by Governor Jennifer M. Granholm July 12, 2007, imposes a 4.95% business income tax and a modified gross receipts tax at the rate of 0.8%. Insurance companies and financial institutions pay alternate taxes (see below). The MBT replaces the Single Business Tax, effective January 1, 2008.

On December 4, 2007, Governor Jennifer M. Granholm signed Public Act 145 of 2007 amending the MBT. Although the primary purpose of PA 145 was to institute an MBT surcharge, PA 145 also makes some additional changes, which are detailed in the link below.

To view additional detail on components of the Michigan Business Tax, choose from the categories below.