4.25% flat state tax + city income tax up to 2.4% (Detroit)

Michigan Paycheck Calculator 2026

Michigan has a flat 4.25% state income tax. About 24 cities levy their own city income taxes under the Michigan City Income Tax Act. Detroit charges the highest at 2.4% for residents, with other cities ranging from 1%–2%.

State income tax
4.25% (flat)
Max local tax
2.4% residents / 1.2% non-residents (Detroit)
FICA (employee)
7.65%
Standard deduction
$14,600
$
Annual take-home pay
Per paycheck
Total taxes
Effective rate
take-home
$
As a 1099 freelancer, you owe 15.3% self-employment tax (both halves of FICA) on top of all income taxes.
Quarterly estimated payments due: Apr 15 · Jun 16 · Sep 15 · Jan 15

Michigan tax breakdown — what you need to know

Key facts about Michigan state, local, and federal taxes for 2026.

01

Michigan state flat tax

Michigan imposes a flat 4.25% income tax on all residents. There are no brackets — everyone pays the same rate. The state also allows a personal exemption of $5,600 per person (2026).

02

City income tax (24 cities)

About 24 Michigan cities levy a city income tax under the City Income Tax Act. Detroit charges 2.4% for residents and 1.2% for non-residents. Most other cities charge 1% for residents and 0.5% for non-residents.

03

Resident vs. non-resident rate

Michigan city taxes distinguish between residents and non-residents. Non-residents pay exactly half the resident rate. If you commute into Detroit from the suburbs, you pay 1.2% on wages earned in Detroit — even though you live elsewhere.

04

Filing city taxes

Detroit requires a separate city income tax return (Form 5118 for residents, 5119 for non-residents). Other cities using the Uniform City Income Tax Ordinance (UCITO) use standardized city forms. Your employer should withhold city tax.

Michigan city income tax rates

Source: state revenue departments and municipal ordinances. Rates effective 2026.

CityResident rateNon-resident rate
Detroit2.40%1.20%
Highland Park2.00%1.00%
Grand Rapids1.50%0.75%
Saginaw1.50%0.75%
Flint1.00%0.50%
Lansing1.00%0.50%
Pontiac1.00%0.50%
Hamtramck1.00%0.50%
Battle Creek1.00%0.50%
Jackson1.00%0.50%

Frequently asked questions — Michigan taxes

Yes. Non-residents who earn wages in Detroit owe 1.2% city income tax on those wages. Your employer should withhold this. If not withheld, you must file Form 5119 and pay directly to Detroit.
Most Michigan cities have no city income tax. Only about 24 cities levy it, including Detroit, Grand Rapids, Flint, Lansing, and Saginaw. If you live and work outside these cities, you only owe the flat 4.25% state tax.
Michigan allows a personal exemption of approximately $5,600 per person (2026) subtracted from adjusted gross income before applying the 4.25% rate. This means the effective rate on a $50,000 income is closer to 4% after the exemption.