---
title: State Tax Debt Help in Michigan: 2026 Guide | TaxTruce
url: https://taxtruce.com/states/michigan
updated: 2026-10-29
---

# Tax help in Michigan

Michigan tax rules, in plain words.

Updated October 8, 20266 sources[Fact checked](/editorial-standards)

The short answer

State tax debt in Michigan is collected by Michigan Department of Treasury, not the IRS. Ask through Collections eService or Form 990. A lien may be placed during the plan.

## Key facts for Michigan

State income tax
:   Flat 4.25% for 2026. [Source](https://www.michigan.gov/treasury/reference/taxpayer-notices/2026/04/15/425-income-tax-rate-for-individuals-and-fiduciaries-in-2026-tax-year)

Payment plan
:   Ask through Collections eService or Form 990. A lien may be placed during the plan. [Source](https://www.michigan.gov/taxes/collections/what-if-i-cant-pay-in-full/installment)

Offer program
:   Yes. Send $100 or 20% of the offer, whichever is more, with the form. [Source](https://www.michigan.gov/taxes/collections/oic)

## Two debts, two sets of rules

* The IRS collects federal taxes, with its own letters and plans.
* Michigan Department of Treasury collects Michigan taxes, with its own rules.
* A plan with the IRS does not stop the state from collecting, and the other way around.

## Common questions in Michigan

Who collects state taxes in Michigan?

The Michigan Department of Treasury. It is separate from the IRS. A plan with one does not stop the other from collecting.

Can I get a payment plan for Michigan taxes?

Ask through Collections eService or Form 990. A lien may be placed during the plan.

Does Michigan take offers in compromise?

Yes. Send $100 or 20% of the offer, whichever is more, with the form.

Can TaxTruce help with Michigan tax debt?

Yes. TaxTruce is a free service that connects you with tax resolution firms that work in Michigan. Answer a few questions, confirm your phone with a text code, and a firm reviews your situation and calls you back. We are not the IRS or a state agency.

Results depend on your situation. Not every case qualifies.

## Sources

1. [Michigan Department of Treasury](https://www.michigan.gov/treasury)
2. [Michigan Department of Treasury: income tax rates](https://www.michigan.gov/treasury/reference/taxpayer-notices/2026/04/15/425-income-tax-rate-for-individuals-and-fiduciaries-in-2026-tax-year)
3. [Michigan Department of Treasury: payment plans](https://www.michigan.gov/taxes/collections/what-if-i-cant-pay-in-full/installment)
4. [Michigan Department of Treasury: offers and settlements](https://www.michigan.gov/taxes/collections/oic)
5. [Michigan Department of Treasury: more help](https://www.michigan.gov/taxes/collections/what-if-i-cant-pay-in-full)
6. [Census QuickFacts Michigan (ACS 2020-2024)](https://www.census.gov/quickfacts/fact/table/MI/PST045224)

Facts on this page come from Michigan Department of Treasury and are linked. Rules change. Check with Michigan Department of Treasury or a licensed tax pro before you act. We are not affiliated with Michigan Department of Treasury.

[En español](/es/estados/michigan)[All states](/states)

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Run the numbers with our [free tax tools](/tools), like the penalty and payment plan math.