What is the Michigan income tax rate in 2026?

Michigan has a flat 4.25% income tax rate on all taxable income. Unlike many states, Michigan does not use a standard deduction — instead it offers a personal exemption of $5,600 per person ($5,600 for single filers, $11,200 for married filing jointly). On $80,000 filing single: taxable = $80,000 - $5,600 = $74,400, MI tax = $74,400 x 4.25% = $3,162.

Does Detroit have a city income tax?

Yes. Detroit levies the highest city income tax in Michigan: 2.4% for residents and 1.2% for non-residents who work in Detroit. On an $80,000 salary, that's $1,920 (resident) or $960 (non-resident) in city tax alone. Other Michigan cities with income tax include Grand Rapids (1.5%), Lansing (1.0%), and Flint (1.0%).

What is Michigan's personal exemption?

Michigan uses personal exemptions instead of a standard deduction. For 2026, each exemption is worth $5,600. Single filers and head of household get 1 exemption ($5,600), while married filing jointly gets 2 exemptions ($11,200). Additional exemptions are available for dependents. These reduce your Michigan taxable income before the 4.25% flat rate is applied.

How does Michigan tax compare to Ohio?

Michigan's 4.25% flat tax is higher than Ohio's 2.75% flat tax on most incomes. However, Ohio taxes only income above $26,050 (after standard deduction), while Michigan taxes all income above the personal exemption. On $80,000 single with no city tax: Michigan = $3,162, Ohio = $1,051 — Michigan costs about $2,111 more in state tax. But Ohio cities often have higher municipal tax rates (up to 2.5%) vs Michigan cities (up to 2.4% in Detroit only).

Michigan Paycheck Calculator 2026

Flat 4.25% state tax + Detroit's 2.4% city tax. Calculate your take-home pay after federal, state, city, and FICA taxes.

Gross annual salary

Pay frequency

Filing status

Michigan city (local tax)Some MI cities levy 1-2.4% local income tax on gross wages

Take-home per paycheck (biweekly)

$2,371.88

Gross pay (annual)$80,000

Deductions (annual)

Federal income tax−$9,049

MI state tax (4.25%)−$3,162

Social Security (6.2%)−$4,960

Medicare (1.45%)−$1,160

Summary

Annual take-home$61,669

Effective total tax rate22.9%

You keep per dollar77 cents

Calculate for other states

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2026 federal + MI state tax rates · Updated April 2026

How to Use This Calculator

Tab "Take-Home Pay"

Enter your gross annual salary, pay frequency, and filing status. Select your Michigan city from the dropdown to include local income tax — Detroit charges 2.4% for residents (1.2% for non-residents), Grand Rapids 1.5%, Lansing and Flint 1.0%. If your city isn't listed, choose "Other (enter rate)" and type the rate manually, or "None" for no city tax. Under "More options," add 401(k) contributions and health insurance premiums to see the impact of pre-tax deductions.

Tab "Tax Breakdown"

See a visual pie chart showing exactly where your money goes — federal tax, Michigan's 4.25% flat state tax, city income tax, Social Security, and Medicare. The chart updates instantly as you change inputs.

Tab "Compare Filing Status"

Compare Single vs Married Filing Jointly vs Head of Household side by side. Michigan's 4.25% rate is the same for all statuses, but the personal exemption doubles for MFJ ($11,200 vs $5,600). The larger difference comes from federal brackets and standard deductions — MFJ doubles the 10% and 12% bracket widths, which can save thousands.

The Formulas

Federal Income Tax (2026 brackets):
1. Taxable income = Gross salary - Pre-tax deductions - Standard deduction ($15,750 Single / $31,500 MFJ / $23,500 HoH)
2. Apply progressive brackets (10% to 37%)

Michigan State Income Tax:
MI taxable = Gross - Pre-tax deductions - Personal exemptions
Personal exemption: $5,600 per person (1 for Single/HoH, 2 for MFJ)
MI tax = MI taxable x 4.25%
Michigan does NOT use a standard deduction — only personal exemptions.

City Income Tax:
City tax = Gross salary x City rate
Detroit: 2.4% (residents) / 1.2% (non-residents) | Grand Rapids: 1.5% | Lansing/Flint: 1.0%
City tax is on gross wages — no deductions apply.

FICA (Federal Insurance Contributions Act):
Social Security = 6.2% x min(Wages, $184,500)
Medicare = 1.45% x Wages
Additional Medicare = 0.9% x max(0, Wages - $200,000)

All figures use 2026 IRS rates. Michigan rate from michigan.gov/taxes (flat 4.25%). City rates from respective municipal tax ordinances.

Example

$80,000 salary, Single, no city tax

Filing Single. No pre-tax deductions. MI taxable income = $80,000 - $5,600 personal exemption = $74,400. State tax = $74,400 x 4.25% = $3,162.

Gross annual salary$80,000

Federal income tax-$9,049

Michigan state tax (4.25%)-$3,162

Social Security (6.2%)-$4,960

Medicare (1.45%)-$1,160

Annual take-home$61,669

Biweekly paycheck$2,372

With Detroit resident city tax (2.4%): $80,000 x 2.4% = $1,920 additional city tax. Take-home drops to $59,749 — nearly $2,000/year less.

Frequently Asked Questions

How does Michigan's flat tax work?▼

Michigan levies a flat 4.25% income tax on all taxable income. Unlike Ohio or the federal system, there are no brackets — everyone pays the same rate regardless of income level. Michigan uses personal exemptions ($5,600 per person for 2026) instead of a standard deduction to reduce taxable income. Single filers get 1 exemption ($5,600), married filing jointly gets 2 ($11,200). For example, on $80,000 single: taxable = $74,400, MI tax = $3,162.

Which Michigan cities have a city income tax?▼

About 24 Michigan cities levy a local income tax. The highest is Detroit at 2.4% for residents (1.2% for non-residents working in Detroit). Grand Rapids charges 1.5%, while Lansing, Flint, Saginaw, and several others charge 1.0%. Most Michigan cities do NOT have a local income tax — only those that have adopted one under the Uniform City Income Tax Act. City tax is applied to gross wages with no deductions.

What is the difference between Detroit resident and non-resident tax?▼

Detroit is unique among Michigan cities: it charges different rates based on residency. Detroit residents pay 2.4% on all income, while non-residents who work in Detroit pay 1.2% on income earned there. On $80,000, that's $1,920 for residents vs $960 for non-residents — a $960/year difference. If you live outside Detroit but work there, you pay the lower non-resident rate.

How does Michigan compare to neighboring states?▼

Michigan's 4.25% flat rate sits in the middle of its neighbors. Ohio has a lower state rate (2.75% above $26,050) but higher city taxes (up to 2.5%). Indiana has a lower flat rate (3.05%) plus county taxes. Illinois charges 4.95% flat with no city income tax. On $80,000 single with no local tax: Michigan = $3,162, Ohio = $1,051, Indiana = $2,294, Illinois = $3,436. Add city taxes and the picture changes significantly.

Does Michigan tax tips and overtime differently?▼

Michigan conforms to federal treatment of tips and overtime for state tax purposes. If the federal government enacts deductions for tips or overtime pay, Michigan would follow suit for state tax calculations. Currently, tips and overtime are taxed as regular income at the flat 4.25% rate. City income taxes also apply to tips and overtime as part of gross wages.

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