Michigan paycheck taxes at a glance
| Income tax on wages | Flat 4.25% |
|---|---|
| Personal exemption | $5,900 single · $11,800 joint · $5,900 per dependent |
| Minimum wage (2026) | $13.73 an hour (rises to $15.00 on Jan. 1, 2027) |
Local taxes: 24 Michigan cities levy an income tax, e.g. Detroit 2.4% for residents.
Example: a $75,800 salary in Michigan
The median household income in Michigan is about $75,832 (2025 data). Here's what one earner with that salary, paid every two weeks, filing single with no pre-tax deductions, would see on each paycheck in 2026:
| Gross pay | $2,915.38 |
|---|---|
| Federal income tax | −$301.77 |
| Social Security | −$180.75 |
| Medicare | −$42.27 |
| Michigan income tax | −$114.26 |
| Take-home pay | $2,276.33 |
That's $59,185 a year in take-home pay, or 21.9% of gross pay going to taxes.
Take-home pay by salary in Michigan
Single filer, paid biweekly, standard W-4, no pre-tax deductions:
| Salary | Per paycheck | Per year | State taxes | Total tax rate |
|---|---|---|---|---|
| $40,000 | $1,264.26 | $32,871 | $1,449 | 17.8% |
| $60,000 | $1,849.64 | $48,091 | $2,299 | 19.8% |
| $80,000 | $2,383.11 | $61,961 | $3,149 | 22.5% |
| $100,000 | $2,891.57 | $75,181 | $3,999 | 24.8% |
| $150,000 | $4,141.03 | $107,667 | $6,124 | 28.2% |
| $200,000 | $5,410.68 | $140,678 | $8,249 | 29.7% |
What changed for 2026
- The minimum wage rose from $12.48 to $13.73 an hour on January 1, 2026.
- The tipped minimum wage rose from 38% to 40% of the regular minimum, or $5.49 an hour, on its way to 50% in 2031.
Michigan pay rules worth knowing
- By default, wages for the 1st to the 15th of a month are due by the 1st of the next month, and wages for the rest of the month by the 15th. A weekly or biweekly payday works if you're paid within 14 days after the end of each work period.
- If you quit or are fired, your employer must pay all wages earned and due as soon as the amount can, with due diligence, be determined.
How Michigan taxes your paycheck
Michigan’s income tax is a flat 4.25%, the rate in state law since October 2012. Before the rate applies, your employer subtracts a personal exemption for you and for each dependent you claim on your Michigan withholding certificate (the amount is in the table above). Michigan has no state disability or paid-leave deduction, so for most workers the only Michigan line on the stub is income tax.
The tax law also includes a revenue-growth trigger that can lower the rate for a single year, so check the rate each year rather than assuming it stays at 4.25%. The calculator uses the 2026 rate.
City income taxes
Michigan cities can adopt an income tax under the state’s City Income Tax Act. If you live or work in one of them, a second income tax comes out of your pay:
- Detroit is allowed the highest rates: up to 2.4% for residents and 1.2% for nonresidents who work in the city.
- Other taxing cities use the rates the act allows for them, and nonresidents who work there generally pay a lower rate than residents.
In general, residents of a taxing city pay its resident rate, and people who live elsewhere pay the nonresident rate on wages they earn in the city. If you live in one taxing city and work in another, check with both cities’ tax offices before you assume your employer has it right.
To include a city tax in your estimate, enter its rate in the Local income tax rate field of the calculator above.
Minimum wage in 2026 and beyond
Michigan law sets the minimum wage and tipped share in steps:
| Date | Minimum wage | Tipped share |
|---|---|---|
| Feb. 21, 2025 | $12.48 | 38% |
| Jan. 1, 2026 | $13.73 | 40% |
| Jan. 1, 2027 | $15.00 | 42% |
The tipped share keeps rising by two points a year until it reaches 50% in 2031. At $13.73, a full-time job (40 hours a week, 52 weeks) pays about $28,558 a year before taxes. Enter your hourly rate in the calculator to see what that means per paycheck.
If you live outside Michigan
Michigan’s reciprocal agreements are with other states and cover state income tax on wages. If you live in a reciprocal state but work in Detroit or another taxing city, don’t assume the city tax goes away too. Ask payroll whether nonresident city tax applies to your job.
Use the income tax calculator to check your full-year federal tax, and the salary calculator to convert hourly pay to annual figures when comparing jobs.
Estimates only. Your employer’s payroll system, your W-4 and Michigan withholding certificate determine your actual paycheck.
Sources
- MCL 408.934: Michigan minimum wage schedule
- MCL 408.934d: Tipped minimum wage
- MCL 408.934b: Minors and training wage
- MCL 408.472: Pay periods
- MCL 408.475: Payment on separation
- MCL 206.51: Michigan income tax rate
- MCL 141.503: City income tax rates
- Minnesota Department of Revenue: Reciprocity
- Wisconsin Department of Revenue: Reciprocity FAQ
- Indiana Department of Revenue: Information Bulletin #28 (reciprocity)
- Census Bureau: Household Income in States and Metropolitan Areas, 2025
- michigan.gov
- IRS Publication 15-T (federal withholding)
Frequently asked questions
What is Detroit's city income tax rate?
State law lets a city with more than 600,000 residents, which in Michigan means Detroit, tax residents at up to 2.4% and nonresidents who work there at up to 1.2%. Those caps drop to 2.2% and 1.1% after the city's public lighting authority bonds are fully paid off.
I live in a neighboring state and work in Michigan. Do I pay Michigan tax?
If you live in Illinois, Indiana, Minnesota, Ohio or Wisconsin, generally not. Michigan has reciprocal agreements with those states, so your employer can withhold your home state's tax instead once you give it the right exemption form.
What will Michigan's minimum wage be after 2027?
It reaches $15.00 on January 1, 2027. After that, it's adjusted each year for inflation using the Midwest consumer price index, with the state treasurer announcing the new rate each October for the following January.
Can teenagers be paid less than the Michigan minimum wage?
Yes. Workers under 18 can be paid 85% of the minimum, which is $11.67 an hour in 2026. Employers can also pay new employees under 20 a training wage of $4.25 an hour for their first 90 days.
Facts verified November 6, 2026. Estimates only; your employer's payroll system and your W-4 determine your actual withholding.