Compare taxes and see how much you save moving from Michigan to Texas
The auto industry migration story: Michigan's flat 4.25% state income tax (Detroit residents pay 6.65% with city tax) vs Texas's 0% (constitutionally prohibited). At $100,000: Michigan $4,250 vs Texas $0. Auto workers following Tesla, Toyota, and GM's Texas operations see immediate tax savings. The catch: Texas property taxes (1.6%) exceed Michigan (1.48%), but income tax savings still dominate for most earners.
Flat Tax State
Detroit adds 2.4% city tax
No Income Tax
Constitutionally prohibited
At $100,000 income:
That is $354/month back in your pocket!
| Income | MI Tax | TX Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $2,125 | $0 | TX saves $2,125 | $21,250 |
| $75,000 | $3,188 | $0 | TX saves $3,188 | $31,880 |
| $100,000 | $4,250 | $0 | TX saves $4,250 | $42,500 |
| $100,000 (Detroit) | $6,650 (state + city) | $0 | TX saves $6,650 | $66,500 |
| $150,000 | $6,375 | $0 | TX saves $6,375 | $63,750 |
| $200,000 (Detroit) | $13,300 (state + city) | $0 | TX saves $13,300 | $133,000 |
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Moving from Michigan to Texas? Multi-state returns are tricky—partial-year residency, different deadlines, avoiding double taxation. Get matched with a CPA who specializes in state moves. Virtual meetings, fixed pricing.
Get Matched With a CPA →At $100,000 income: save $4,250/year ($42,500 over 10 years). Detroit residents save more: $6,650/year ($66,500 over 10 years) due to Detroit's 2.4% city income tax elimination. Texas property taxes are slightly higher (1.6% vs 1.48%), which costs ~$500 more annually on a $400K home. Net savings for most earners: $3,700-6,000/year.
Partially. Tesla's Gigafactory is in Austin (50,000+ jobs projected). Toyota moved its US HQ to Plano, Texas in 2017. GM has truck manufacturing in Arlington. However, Detroit remains the industry's heart—Ford, GM, and Stellantis HQs are all in Michigan, and the supplier network is unmatched. Texas is gaining, but Michigan's auto industry isn't disappearing.
Detroit residents pay 2.4% city income tax on top of Michigan's 4.25% state tax = 6.65% combined. Non-residents working in Detroit pay 1.2%. Moving from Detroit to Texas saves $6,650 on $100K income vs $4,250 from Michigan suburbs. This makes the Detroit→Texas move especially attractive financially.
San Antonio has Toyota's truck plant (3,000+ workers). Austin has Tesla's Gigafactory (growing to 20,000+). Arlington (Dallas area) has GM's full-size truck plant. For corporate/engineering roles: Plano (Toyota HQ), Austin (tech/EV focus). For manufacturing: San Antonio or Arlington. Dallas-Fort Worth offers the most diverse auto industry opportunities.
Michigan's auto industry faces major challenges: EV transition (fewer jobs per vehicle), Chinese competition, and legacy costs. Some recovery is happening (battery plants, EV manufacturing), but the industry is structurally shrinking. If you work in traditional auto (internal combustion), Texas offers both tax savings and growing opportunities. If you're in EV/battery tech, both states have strong prospects.