Michigan Paycheck Calculator

Michigan imposes a state income tax of 4.25%. Flat rate with personal exemption. Your actual Michigan tax liability depends on your filing status, deductions, and taxable income.

In addition to Michigan state tax, all workers pay federal income tax (10%—7% progressive brackets) and FICA taxes (7.65% combined). Use our calculator above to see your complete tax breakdown.

Michigan has a flat state income tax rate of 4.25%, which applies to all taxable income after the personal exemption. The Michigan Department of Treasury administers state taxes. The state eliminated the personal property tax on certain business equipment in recent years.

Key Tax Features: Michigan provides a personal exemption of $6,150 per person, which reduces taxable income. The state does not tax Social Security benefits. Michigan conforms to many federal tax provisions, making preparation simpler. The state has been working to make its business tax climate more competitive.

Auto Industry Revival: Michigan's economy is historically anchored by the auto industry, which has undergone significant transformation with electric vehicle manufacturing. Detroit has seen revitalization with new investment in technology, entertainment, and urban development.

No Local Income Tax: Michigan does not impose local income taxes on wages (though some cities like Detroit have discussed local income taxes). Local governments rely on property taxes. The state sales tax rate is 6%.

Michigan's 4.25% flat tax comes with a personal exemption of $6,150 per person. Detroit is the historic heart of the American auto industry, and the state leads in advanced manufacturing and engineering.