Individual income tax: rate; rollback of rate to 3.9%; provide for. Amends sec. 51 of 1967 PA 281 (MCL 206.51).

Michigan House Bill 5519, introduced on February 18, 2026, proposes reducing the state's individual income tax rate from 4.25% to 3.9%. This change would amend Section 51 of the Income Tax Act of 1967 (MCL 206.51). The bill is currently under consideration by the House Finance Committee.

Supporters of HB5519 argue that lowering the income tax rate to 3.9% would provide financial relief to Michigan residents, potentially boosting consumer spending and stimulating economic growth. They believe this tax reduction could make the state more attractive to businesses and individuals seeking a lower tax burden.

Critics of HB5519 express concern that reducing the income tax rate could lead to decreased state revenue, potentially resulting in budget shortfalls. They worry that this could necessitate cuts to essential public services such as education, healthcare, and infrastructure, adversely affecting the quality of life for Michigan residents.