State Rep. Karl Bohnak on Tuesday secured the passage of a key income tax cut for Michigan workers and their families. House Bill 4170 would immediately reduce the state income tax rate, which climbed from 4.05% to 4.25% on Jan. 1, 2024, after politicians in Lansing decided to end a reduction that had been triggered in 2023.

“Times are tough in Marquette, the U.P., and across Michigan,” said Bohnak, R-Deerton. “Whether we’re talking about college students, young families, or blue-collar workers, securing this income tax cut would guarantee desperately needed relief for everyone across the board. Putting more money pack into people’s wallets will help pay for college textbooks, diapers, overdue bills, or whatever else people need. At the end of the day, these dollars don’t belong to the government or the politicians fighting against this tax cut; they belong to the people who earned them.”

In 2015, a law was enacted to provide automatic income tax relief whenever state general fund revenues grew faster than inflation. When this provision was triggered in 2023, the tax rate dropped from 4.25% to 4.05% — a move intended to be permanent. Despite this, the Lansing bureaucrats ruled that the tax cut was temporary, forcing a 5% tax hike onto everyone in Michigan.

The plan – introduced by Rep. Kathy Schmaltz, R-Jackson – lowers the income tax rate back to 4.05% as of Jan. 1, 2025, and clarifies the 2015 law so that any future automatic reductions would remain in effect unless altered through the normal legislative process.

The legislation now moves to the Senate for further consideration.

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