Michigan rules
How Michigan taxes your paycheck in 2026
Michigan applies a single 4.25% flat income tax to taxable income, after subtracting a per-person personal exemption of about $5,800 (2026). The Michigan Department of Treasury keeps the system uniform: the same rate applies whether you earn $35,000 or $350,000.
The 4.25% flat rate and the personal exemption
Each taxpayer (and dependent) claims a personal exemption that reduces taxable income before the flat rate. A married couple with two children shields over $23,000 of income. This calculator applies the standard single or married exemption automatically.
| Gross salary | MI state tax (≈4.25%) | Est. take-home |
|---|---|---|
| $45,000 | ~$1,666 | ~$37,000 |
| $60,000 | ~$2,304 | ~$47,200 |
| $90,000 | ~$3,579 | ~$68,200 |
| $130,000 | ~$5,279 | ~$95,100 |
After the $5,800 single exemption. 2026 federal brackets and FICA.
Comparing Michigan to other states
Michigan's 4.25% matches North Carolina and undercuts Georgia. Compare with neighboring flat-tax Illinois or Ohio's near-flat system.
Questions
Michigan salary calculator FAQ
What is the Michigan income tax rate for 2026?
Michigan has a flat individual income tax of 4.25% on taxable income, administered by the Michigan Department of Treasury, after a per-person personal exemption of about $5,800 for 2026.
How much is taken out of a paycheck in Michigan?
A Michigan paycheck is reduced by federal income tax, 6.2% Social Security, 1.45% Medicare and the flat 4.25% state income tax. On a $60,000 single salary, total deductions are roughly 22% to 24%, before any city income tax.
Does Michigan have a personal exemption?
Yes. Michigan provides a personal exemption of about $5,800 per person for 2026, which reduces taxable income before the 4.25% flat rate applies. Additional exemptions apply for dependents.
Do Michigan cities charge income tax?
Yes. About two dozen Michigan cities, including Detroit, Grand Rapids and Lansing, levy a local income tax on top of the 4.25% state rate. Detroit residents pay roughly 2.4%. The calculator shows the state portion only.
- Sources: Michigan Department of Treasury (4.25% flat rate; personal exemption) · IRS Rev. Proc. 2025-32 · SSA 2026 wage base.
- 🔄 Last updated June 9, 2026 · Tax year 2026
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