Individuals and fiduciaries subject to tax under Part 1 of the Income Tax Act, MCL 206.1 et seq. , are subject to tax at the rate provided under Section 51 of the Income Tax Act, MCL 206.51. For each tax year beginning on and after January 1, 2023, the rate may be subject to a formulary reduction as provided by Section 51(1)(c) if there is a determination that the percentage increase in general fund revenue from the immediately preceding state fiscal year exceeded the inflation rate for the same period. That determination is required to be made jointly by the State Treasurer, the Director of the Senate Fiscal Agency, and the Director of the House Fiscal Agency based on financial data from the Annual Comprehensive Financial Report (ACFR). According to data from the Fiscal Year 2025 ACFR, the general fund/general purpose revenue decreased by 1.56%, while inflation increased by 2.70%. These conditions do not require the application of the statutory formula to determine a potential rate reduction. As a result, the rate in effect under Section 51 for the 2026 tax year is 4.25%.