Michigan Paycheck Calculator 2026

Michigan's income tax is flat, but it is not simply 4.25% of your pay: the state allows $5,900 for each exemption you claim, and around two dozen cities levy their own income tax on top. Both are modelled here.

How Michigan withholding works

Michigan applies a single flat rate of 4.25% to wages after subtracting an exemption allowance. The allowance is $5,900 for each personal or dependency exemption you claim on Form MI-W4. If you never file an MI-W4, your employer must withhold with no allowance at all, which over-withholds.

There are no brackets and no separate married-filing-jointly table. Two employees on the same wage claiming the same number of exemptions have the same Michigan withholding regardless of marital status. That surprises people who are used to federal tables, and it is why changing your federal W-4 does not change your Michigan deduction.

The exemption amount is indexed and changes every year — it was $5,600 in 2024 and $5,900 in 2026 — so a calculator that carries last year's number forward quietly over-withholds.

Michigan city income tax

Michigan is one of the few states where cities levy an income tax on residents and, at a lower rate, on non-residents who work there. Detroit is the largest: 2.4% for residents and 1.2% for non-residents. Someone living in Detroit on a $75,000 salary pays roughly $1,800 a year that a Grand Rapids resident does not, and a calculator that ignores city tax is wrong for the state's biggest city.

City tax is withheld by the employer and is separate from the 4.25% state rate. Select your city in the calculator to include it. The rate used here is a working default pending an official citation, and only Detroit is modelled — other Michigan cities with an income tax are not yet included.

Worked examples

Single filer, one exemption, biweekly pay, no pre-tax deductions, excluding city tax. Produced by the same engine as the calculator.

Figures recomputed at build time by the same engine that powers the calculator. Verified 2026-10-30.

Frequently asked questions

Does Michigan have a flat income tax?

Yes, 4.25% for 2026. The rate is set by statute and recomputed annually against a revenue trigger, so it can move; it was 4.05% in 2023 before returning to 4.25%.

Why doesn't my filing status change my Michigan withholding?

Because Michigan has no separate married and single rate schedules. Withholding depends on the number of exemptions on your MI-W4, not on whether you file jointly.

What is the Michigan personal exemption?

$5,900 per exemption for 2026. Your employer subtracts the allowance from annualised wages before applying the 4.25% rate, so each exemption is worth about $250 a year in withholding.

Do I owe Detroit city income tax if I live outside the city?

Possibly. Detroit taxes non-residents on wages earned in the city at 1.2%, and residents on essentially all of their income at 2.4%. Where you live and where you work both matter.

Are there other Michigan cities with an income tax?

Yes, around two dozen. This calculator currently models Detroit only and says so rather than silently omitting the line.