How Michigan taxes your paycheck
Michigan employers withhold 4.25% of your pay after subtracting $5,900 a year for each personal and dependency exemption on your Form MI-W4. The federal W-4 cannot be used in its place, and if you never give your employer a valid MI-W4, tax is withheld as if you had no exemptions.
A traditional 401(k) and pre-tax health premiums lower your Michigan tax the same way they lower your federal income tax, because Michigan follows the federal rules for these benefits.
Twenty-four Michigan cities have their own income tax. Detroit withholds 2.4% from residents and 1.2% from non-residents whose main place of work is the city. Grand Rapids withholds 1.5% from residents and 0.75% from non-residents. Both subtract $600 a year for each exemption before applying the rate.
If you live or work in one of the other cities with an income tax, choose that option in the calculator and enter the rate that applies to you. Someone who lives in one taxing city and works in another can have tax withheld for both; this calculator handles one city at a time.
| Deduction | Rate | Applies to wages up to |
|---|---|---|
| Federal income tax | 10% to 37% | No limit |
| Social Security | 6.2% | $184,500 |
| Medicare | 1.45% (2.35% over $200,000) | No limit |
| Michigan income tax | 4.25% | No limit |
Local taxes in this calculator
| Where you live and work | Local income tax |
|---|---|
| Detroit resident | 2.4% |
| Work in Detroit, live elsewhere | 1.2% |
| Grand Rapids resident | 1.5% |
| Work in Grand Rapids, live elsewhere | 0.75% |
| Another Michigan city with an income tax | Set by the city |
| No city income tax | None |
Twenty-four Michigan cities have an income tax. Everywhere else, only state tax is withheld.
If you choose "Another Michigan city with an income tax", the calculator starts with a 1% city income tax. Enter the rate your city charges you. Cities set one rate for residents and a lower one for non-residents who work there. Michigan Treasury's list of cities with an income tax
How to use the Michigan paycheck calculator
Enter your salary, or your hourly wage and hours, choose how often you are paid and pick the filing status on your W-4. The calculator estimates your Michigan (MI) take-home pay for each paycheck and for the year, after federal income tax, Social Security, Medicare, Michigan income tax and local taxes.
It follows the published withholding formulas that employers' payroll systems use, so it works as a paycheck estimator for a job offer, a raise or a change to your W-4. Open "401(k), benefits and W-4 details" to add pre-tax deductions, dependents or extra withholding. Your real paycheck can differ if your employer takes out deductions the calculator does not know about.
Michigan take-home pay examples
Single filer, paid every two weeks, standard W-4 with no dependents, no 401(k) or pre-tax benefits, in Michigan with one exemption on Form MI-W4 and no city income tax.
| Salary | Per paycheck | Per year | Taxes per year |
|---|---|---|---|
| $30,000 | $971.57 | $25,260.75 | $4,739.25 |
| $40,000 | $1,264.26 | $32,870.75 | $7,129.25 |
| $50,000 | $1,556.96 | $40,480.75 | $9,519.25 |
| $60,000 | $1,849.64 | $48,090.75 | $11,909.25 |
| $75,000 | $2,255.99 | $58,655.75 | $16,344.25 |
| $100,000 | $2,891.56 | $75,180.75 | $24,819.25 |
| $150,000 | $4,141.03 | $107,666.75 | $42,333.25 |
| Hourly rate | Per week | Per year | Before taxes |
|---|---|---|---|
| $15.00 an hour | $503.34 | $26,173.95 | $31,200 |
| $20.00 an hour | $655.54 | $34,088.35 | $41,600 |
| $25.00 an hour | $807.74 | $42,002.75 | $52,000 |
| $30.00 an hour | $959.94 | $49,917.15 | $62,400 |
| $40.00 an hour | $1,232.23 | $64,075.95 | $83,200 |
| $50.00 an hour | $1,496.63 | $77,824.75 | $104,000 |
Michigan paycheck questions
What is the Michigan income tax rate in 2026?
4.25%. Employers withhold 4.25% of your pay after an allowance of $5,900 a year for each exemption on Form MI-W4.
How much is the Michigan personal exemption in 2026?
$5,900 for each personal and dependency exemption. Your employer divides it across your paychecks before applying the 4.25% rate.
What is the Detroit city income tax rate?
2.4% for Detroit residents and 1.2% for non-residents whose main place of work is Detroit, after $600 a year for each exemption.
Which Michigan cities have an income tax?
Twenty-four: Albion, Battle Creek, Benton Harbor, Big Rapids, Detroit, East Lansing, Flint, Grand Rapids, Grayling, Hamtramck, Highland Park, Hudson, Ionia, Jackson, Lansing, Lapeer, Muskegon, Muskegon Heights, Pontiac, Port Huron, Portland, Saginaw, Springfield and Walker.
How many exemptions can I claim on Form MI-W4?
The personal and dependency exemptions you are allowed on your Michigan income tax return, and no more than that.
Does a 401(k) lower my Michigan taxes?
Yes. Traditional 401(k) contributions and pre-tax health premiums are left out of the pay Michigan taxes, just as they are for federal income tax.
Sources
- Michigan Treasury: 2026 Michigan Income Tax Withholding Guide (Form 446)
- Michigan Treasury: 2026 City of Detroit Income Tax Withholding Guide (Form 5469)
- Michigan Treasury: which cities impose an income tax
- City of Grand Rapids: income tax guide for withholders
- IRS: tax inflation adjustments for tax year 2026
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods
- Social Security wage base for 2026
- 2026 401(k) contribution limit
Tax figures last reviewed October 7, 2026. How we calculate