Michigan Paycheck Calculator

Michigan imposes a flat state income tax of 4.25% on all taxable wages. This rate had been scheduled to decrease under a 2015 law, but those reductions have been suspended pending budget conditions — so 4.25% remains the operative rate for 2026. Michigan follows federal adjusted gross income as the base for state calculations, so most pre-tax deductions (401k, HSA, health insurance) reduce Michigan taxable income automatically.

Detroit levies its own city income tax: 2.4% for residents and 1.2% for non-residents working within city limits. Detroit is the only Michigan city with a meaningful wage-based city income tax at that level, though several smaller cities (Flint, Grand Rapids, Lansing, Saginaw) have local income taxes ranging from 1% to 2%.

Michigan's personal exemption is $5,000 per filer (plus additional exemptions for dependents), reducing the taxable income base before the 4.25% rate applies. Michigan also exempts Social Security income for most residents.