How Michigan taxes your paycheck
Michigan taxes income at a flat 4.25%. The Treasury confirmed in April 2026 that no temporary rate cut applies this year. Instead of a standard deduction, every person on the return, and each dependent, gets a personal exemption of $5,900 for 2026.
There are no state payroll taxes on employees. What sets Michigan apart is city income tax: 24 cities levy one, from Detroit's 2.4% for residents to the usual 1% elsewhere, figured on wages after 401(k) deferrals.
Michigan income tax = 4.25% × (wages − 401(k) − health premiums − exemptions)
- Personal exemption: $5,900 single, $11,800 married filing jointly, $5,900 head of household, taken off income before tax.
Worked example
You earn $75,000 a year in Michigan, file single and are paid every two weeks. Federal income tax is $7,670 and Social Security and Medicare $5,738, the same in every state.
Michigan taxes $69,100 of it, for $2,937 of state income tax. You keep $58,656 a year, or $2,255.99 per paycheck: $2,937 a year less than in a state with no income tax.
The same salary takes home $59,974 in Ohio and $58,025 in Illinois.
Take-home pay in Michigan by salary
Single filer, paid every two weeks, no 401(k) or premiums, before any local tax.
| Salary | Michigan tax | Take-home per year | Per paycheck |
|---|---|---|---|
| $40,000 | $1,449 | $32,871 | $1,264.26 |
| $60,000 | $2,299 | $48,091 | $1,849.64 |
| $80,000 | $3,149 | $61,961 | $2,383.11 |
| $100,000 | $3,999 | $75,181 | $2,891.57 |
| $150,000 | $6,124 | $107,667 | $4,141.03 |
Things to know
- City income tax. Detroit charges residents 2.4% and people who work there but live elsewhere 1.2%, after a $600 exemption per person. Most other taxing cities charge residents 1% and nonresidents 0.5%; Grand Rapids charges 1.5%. Enter your rate above.
- Tips and overtime. For 2026 through 2028 Michigan lets you deduct tips and overtime pay to the same extent as on your federal return. You claim it when you file; paychecks don't change.
- Michigan earned income credit. Lower-income workers get a state credit worth 30% of the federal earned income credit, paid even if you owe no tax.
- This estimates what you owe, not what's withheld. Withholding follows your W-4 and Michigan's own withholding form, so paychecks can differ a little; the difference comes back as a refund or is due when you file. The W-4 withholding calculator checks the federal side.
Questions people ask
Which Michigan cities have an income tax?
Twenty-four, including Detroit, Grand Rapids, Lansing, Flint and Saginaw. The Michigan Department of Treasury keeps the full list.
What is Michigan's income tax rate for 2026?
4.25% on income after your personal exemptions. A temporary cut to 4.05% applied for 2023 only; no cut was triggered for 2026.
Does Michigan city tax apply to my 401(k) contributions?
No. City income taxes follow federal taxable wages, which leave out traditional 401(k) deferrals, so contributing lowers both your state and city tax.
Paycheck calculators for other states
California · Florida · Georgia · Illinois · New York · North Carolina · Ohio · Pennsylvania · Texas. For any other state, the paycheck calculator takes your state's rate.
Sources
- Michigan Department of Treasury: Form 446, 2026 Michigan income tax withholding guide ($5,900 exemption)
- Michigan Department of Treasury: state individual income tax rate for 2026 determined (April 15, 2026)
- Michigan Department of Treasury: Form 5469, 2026 City of Detroit income tax withholding guide
- Michigan Department of Treasury: which cities impose an income tax?
- Michigan Department of Treasury: new deductions for overtime and tips (2026)
- IRS: tax inflation adjustments for tax year 2026 (federal brackets and standard deduction)
- Social Security Administration: contribution and benefit base ($184,500 in 2026)
Reviewed October 11, 2026 by The Dollars World team. How we build and check our calculators · Our data and formulas. This is general information, not financial advice.