Detroit rules
How taxes hit a Detroit paycheck in 2026 — including the city tax
Detroit is in Michigan, and like a handful of Michigan cities it levies its own income tax. A Detroit resident's pay stub carries federal taxes, Michigan's flat state tax, and the 2.4% Detroit city income tax. The city portion applies to gross wages, adding a real slice to every paycheck.
Michigan's flat 4.25% state tax
Michigan taxes income at a single flat rate of 4.25% after a per-person exemption (about $5,800 for 2026). There are no graduated brackets, so the state portion is the same percentage for most Detroit workers.
The Detroit city income tax: 2.4%
Detroit charges residents a 2.4% city income tax on wages; non-residents who work in the city pay roughly half that rate. The tax helps fund city services and applies on top of the state tax.
The Detroit cost of living
Detroit has one of the most affordable costs of living among major U.S. cities, with notably cheap housing. That affordability helps offset the city income tax, leaving Detroit workers with reasonable real take-home pay.
Compare Detroit with other places
Run your salary through statewide Michigan, city-tax peer Columbus, or no-tax Houston.
Questions
Detroit salary calculator FAQ
Does Detroit have a city income tax?
Yes. Detroit levies a city income tax of 2.4% on residents (and a lower rate on non-residents who work in the city), on top of Michigan's flat 4.25% state income tax. The city tax applies to wages.
How much is taken out of a paycheck in Detroit?
A Detroit resident's paycheck is reduced by federal income tax, 6.2% Social Security, 1.45% Medicare, Michigan's 4.25% flat tax AND the 2.4% Detroit city tax. On a $60,000 single salary, total deductions are roughly 25% to 27%.
Do non-residents pay the Detroit city tax?
Yes, but at a reduced rate. People who work in Detroit but live elsewhere owe the non-resident city tax (roughly half the resident rate) on wages earned in the city. This calculator uses the 2.4% resident rate.
What is the take-home pay on $100,000 in Detroit?
A single Detroit resident earning $100,000 takes home roughly $69,000 to $71,000 a year after federal tax, FICA, Michigan tax and the Detroit city income tax. Use the calculator above for your exact figure.
- Sources: Michigan Department of Treasury (Detroit city income tax 2.4%; MI 4.25% flat) · IRS Rev. Proc. 2025-32 · SSA 2026 wage base.
- 🔄 Last updated June 9, 2026 · Tax year 2026
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