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Michigan Paycheck Guide

Michigan uses a flat state income tax. Everyone pays the same percentage on taxable wages, regardless of income.

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Reviewed by PayslipIQ Editorial Team, in-house payroll editor
Last reviewed May 2026 · Editorial standards on methodology

PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, accounting, employment, benefits, or payroll advice. PayslipIQ is not a CPA firm, law firm, financial advisor, payroll provider, or tax authority. Always verify your paycheck, deductions, withholdings, and tax position with your employer's payroll department, a qualified CPA, the IRS, your state tax authority, or another appropriately qualified professional. Calculations are estimates; your actual paycheck may differ based on factors specific to your employer, location, benefits elections, and personal tax situation.

Michigan: the local picture

Michigan runs a flat 4.25% state income tax. Many Michigan cities (Detroit, Grand Rapids, Lansing, Saginaw, Flint, Pontiac, several others) levy a city income tax of 1.0% to 2.4% on residents and a lower rate on non-residents.

Michigan Paycheck Calculator

Estimate take-home pay for Michigan.

Michigan State Tax

Michigan tax structure and rates.

Michigan Overtime

Federal FLSA applies.

Michigan Pay Stub Laws

Employer pay stub requirements in Michigan.

How a Michigan paycheck is built

Every Michigan worker pays federal income tax, calculated on the W-4 you submitted to your employer using the IRS Publication 15-T tables. Federal income tax is followed by FICA: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies once year-to-date wages cross $200,000 single or $250,000 married filing jointly.

Michigan adds a flat state income tax of approximately 4.25 percent. Verify the current rate with the Michigan Department of Treasury.

Local taxes: Michigan has cities or counties that levy local income tax on top of state tax. Common examples are noted on the local-tax page.

What changed recently in Michigan

  • No major state rate change for 2025-2026.
  • City rates adjusted individually.
  • Michigan Earned Income Tax Credit increased.

Michigan payroll quirks workers should know

  • Detroit city income tax 2.4% residents, 1.2% non-residents.
  • Grand Rapids 1.5% residents, 0.75% non-residents.
  • Multiple Michigan cities use this resident/non-resident split structure.

Example breakdown

A hypothetical Michigan worker on a $65,000 annual salary, paid bi-weekly, single filer, no extra adjustments. Educational only, your real paycheck differs.

Gross (bi-weekly)$2500.00
Federal income tax-$250.00
Social Security (6.2%)-$155.00
Medicare (1.45%)-$36.25
Michigan state tax-$106.25
Estimated take-home$1952.50

Run your own numbers in the Michigan paycheck calculator.

Authoritative sources

Frequently asked questions

Does Michigan have state income tax?
Yes. Michigan uses a flat state income tax rate. Verify the current rate with the Michigan Department of Treasury.
Are there local income taxes in Michigan?
Yes. Michigan has cities or counties that add local income tax on top of state tax. Check your specific city.
Does Michigan have State Disability Insurance or Paid Family Leave premiums?
No. Michigan does not have state-mandated SDI or PFL employee premiums.
Does Michigan have daily-overtime rules?
No. Michigan follows federal FLSA: 1.5x for hours above 40 in a workweek.
What is FICA on a Michigan paycheck?
FICA is federal: 6.2 percent Social Security up to the annual wage base, plus 1.45 percent Medicare on every dollar. The 0.9 percent Additional Medicare Tax applies above $200,000 single or $250,000 married filing jointly. FICA applies in every state.
Where do I verify Michigan state tax withholding?
The Michigan Department of Treasury (https://www.michigan.gov/treasury) is the authoritative source. For your specific paycheck, contact your employer's payroll team or a CPA.
Why does my Detroit paycheck show two state-level tax lines?
One is Michigan state tax (4.25% flat). The other is Detroit city income tax. As a Detroit resident the rate is 2.4%, as a non-resident commuting in it is 1.2%.
I moved out of Detroit but still work there. What changes?
Your city tax drops from 2.4% to 1.2%. Update your MI-W4 city section with payroll.