Michigan paycheck taxes at a glance
| State income tax | Flat 4.25% |
|---|---|
| Standard deduction | None |
| Personal exemption | $5,900 single, $11,800 joint |
| Per dependent | $5,900 exemption |
| Pre-tax deductions | 401(k), HSA and health premiums lower state tax too |
| Local income tax | Yes: 29 options in the calculator |
| State payroll deductions | None |
| Reciprocity | With IL, IN, KY, MN, OH, WI |
| Figures | Tax year 2026 |
Every paycheck also has federal income tax, Social Security (6.2% up to $184,500) and Medicare (1.45%), worked out with the same 2026 IRS figures as ourmain paycheck calculator.
Worked examples
A $60,000 salary in Detroit, single resident, paid every two weeks
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $2,307.69 | $60,000 |
| Federal income tax | − $193.08 | − $5,020 |
| Social Security and Medicare | − $176.54 | − $4,590 |
| Michigan income tax | − $88.43 | − $2,299 |
| Local: Detroit (resident) | − $54.83 | − $1,426 |
| Take-home pay | $1,794.81 | $46,665 |
Single, paid every two weeks (26 paychecks). Michigan taxable income is $54,100 and the state tax is $2,299, an effective 3.832% of gross pay. Detroit’s 2.4% resident tax adds more than half again to the state income tax, because the city exemption is only $600 against the state’s $5,900.
A $95,000 household in Grand Rapids, married filing jointly with two children
| Per paycheck | Per year | |
|---|---|---|
| Gross pay | $3,653.85 | $95,000 |
| Federal income tax | − $101.54 | − $2,640 |
| Social Security and Medicare | − $279.52 | − $7,268 |
| Michigan income tax | − $116.71 | − $3,035 |
| Local: Grand Rapids (resident) | − $53.42 | − $1,389 |
| Take-home pay | $3,102.65 | $80,669 |
Married filing jointly, 2 children, paid every two weeks (26 paychecks). Michigan taxable income is $71,400 and the state tax is $3,035, an effective 3.194% of gross pay. Four $5,900 exemptions shield $23,600 from the 4.25% state rate, while the city allows four $600 exemptions before its 1.5% resident rate.
City income tax: resident or commuter
If you live in a taxing city, you pay its resident rate on all your wages, even if you work elsewhere. If you only work there, you pay the non-resident rate, usually half, on the pay earned inside the city, and nothing for days worked from home outside it. Each city allows an exemption per person (usually $600) before the rate applies. City wages follow W-2 box 1, so 401(k) deferrals are not taxed; the calculator taxes them, which overstates city tax by about 1% of your deferral.
Why the rate is still 4.25%
Since 2023 the Income Tax Act can trim the rate in any year when state general fund revenue grows faster than inflation. For 2026 it did not: the Michigan Department of Treasury reported in April 2026 that general fund revenue fell 1.56% while inflation was 2.70%, so the rate stays 4.25%, as in 2024 and 2025. The personal exemption rose from $5,800 to $5,900 for 2026.
Reciprocity with six states
Michigan has reciprocal agreements with Illinois, Indiana, Kentucky, Minnesota, Ohio and Wisconsin. If you live in one of those states and work in Michigan, file Form MI-W4 with your employer to claim the exemption, and your wages are taxed only at home. Michigan city taxes are not covered by these agreements. See the Ohio and Indiana calculators.
Michigan vs. neighboring states
Take-home pay on a $75,000 salary, single, no pre-tax deductions and no local tax:
| State | Income tax | State tax + programs | Take-home |
|---|---|---|---|
| Michigan | Flat 4.25% | $2,937 | $58,656 |
| Ohio | 2.75% above $26,050 (single) | $1,619 | $59,974 |
| Indiana | Flat 2.95% | $2,183 | $59,410 |
| Wisconsin | 3.5% to 7.65% (4 brackets) | $2,985 | $58,607 |
Where you work and where you live can both matter. See paycheck calculators for every state for the full comparison.