Michigan Paycheck Calculator
Michigan Paycheck Calculator quickly estimates take-home pay after state, federal, and city taxes, deductions, and benefits for Michigan workers accurately.
Michigan income tax rate
Michigan has a flat individual income tax. It was 4.25% for tax years 2016–2022, temporarily dropped to 4.05% for 2023, and returned to 4.25% for 2024 and 2025. Cities may add their own local income taxes (see table below). Employers use Michigan withholding tables and your MI-W4 (and any city form) to calculate paycheck deductions. See sources at the end for official confirmations.
| Year | State Income Tax Rate |
|---|---|
| 2016 | 4.25% |
| 2017 | 4.25% |
| 2018 | 4.25% |
| 2019 | 4.25% |
| 2020 | 4.25% |
| 2021 | 4.25% |
| 2022 | 4.25% |
| 2023 | 4.05% (temporary) |
| 2024 | 4.25% |
| 2025 | 4.25% |
Michigan Median household income
Michigan’s median household income continues to trend upward over the long run, with pandemic-era fluctuations and recent inflation adjustments. The 2024 estimate is about $72,389 (ACS 1-year). Real (inflation-adjusted) measures from FRED show a rebound in 2023–2024 after dips in 2021–2022. Use these figures to benchmark wages, negotiate offers, or assess cost of living vs. nearby states or metro areas.
| Year | Real Median Household Income |
|---|---|
| 2015 | $69,820 |
| 2016 | $72,890 |
| 2017 | $70,770 |
| 2018 | $74,350 |
| 2019 | $77,710 |
| 2020 | $77,240 |
| 2021 | $74,040 |
| 2022 | $73,550 |
| 2023 | $78,950 |
| 2024 | $79,460 |
Number of Michigan cities with local income taxes
Michigan has 24 cities that levy local income taxes. Most charge 1.00% (residents) and 0.50% (nonresidents), with a few exceptions (e.g., Detroit, Grand Rapids, Highland Park, Saginaw).
| City | Resident Rate | Nonresident Rate |
|---|---|---|
| Albion | 1.00% | 0.50% |
| Battle Creek | 1.00% | 0.50% |
| Benton Harbor | 1.00% | 0.50% |
| Big Rapids | 1.00% | 0.50% |
| Detroit | 2.40% | 1.20% |
| East Lansing | 1.00% | 0.50% |
| Flint | 1.00% | 0.50% |
| Grand Rapids | 1.50% | 0.75% |
| Grayling | 1.00% | 0.50% |
| Hamtramck | 1.00% | 0.50% |
| Highland Park | 2.00% | 1.00% |
| Hudson | 1.00% | 0.50% |
| Ionia | 1.00% | 0.50% |
| Jackson | 1.00% | 0.50% |
| Lansing | 1.00% | 0.50% |
| Lapeer | 1.00% | 0.50% |
| Muskegon | 1.00% | 0.50% |
| Muskegon Heights | 1.00% | 0.50% |
| Pontiac | 1.00% | 0.50% |
| Port Huron | 1.00% | 0.50% |
| Portland | 1.00% | 0.50% |
| Saginaw | 1.50% | 0.75% |
| Springfield | 1.00% | 0.50% |
| Walker | 1.00% | 0.50% |
How Your Michigan Paycheck Works
Your employer withholds federal income tax (based on your W-4), Social Security and Medicare (FICA), Michigan state income tax, and—if applicable—a city income tax where you live or work. Pre-tax benefits (401(k), HSA, insurance) reduce taxable wages. Post-tax deductions (garnishments, Roth) do not. Pay frequency (weekly, biweekly, semimonthly, monthly) changes per-check amounts but not your annual tax. Bonuses are generally taxed like regular wages in Michigan.
Michigan Wage and Hour Laws: Overtime & Pay Frequency
Overtime: Most non-exempt workers earn 1.5× their regular rate for hours worked over 40 in a workweek under Michigan’s Improved Workforce Opportunity Wage Act (mirrors FLSA). The state minimum wage is $12.48 (effective Feb 21, 2025), with scheduled increases; tipped wage rises gradually toward 50% of the standard minimum by 2031.
Pay frequency: Employers must maintain a regular payday—weekly, biweekly, semimonthly, or monthly—and pay wages by statutory deadlines under the Payment of Wages and Fringe Benefits Act.
FAQs
How do I use a Michigan paycheck calculator?
Enter gross pay, pay schedule, filing status, allowances/credits, pre-tax benefits, and any city tax. The tool estimates net pay.
Does Michigan have a flat state income tax?
Yes. Michigan levies a flat rate statewide (see the 10-year table). Some cities add local income taxes.
What happened with the 2023 Michigan income tax cut?
Michigan’s rate dropped to 4.05% for 2023 only, then reverted to 4.25% starting January 1, 2024.
Which Michigan cities tax nonresidents who work there?
All 24 taxing cities apply a lower nonresident rate (often half the resident rate). Detroit’s is 1.2% for nonresidents.
Are bonuses taxed differently in Michigan?
Michigan does not use a special supplemental rate; bonuses are generally taxed like regular wages for state purposes.
How does pre-tax 401(k) saving affect my paycheck?
Traditional 401(k) contributions reduce federal, state, and city taxable wages (not FICA), increasing your take-home per dollar saved.
What is the current Michigan minimum wage?
$12.48 per hour effective February 21, 2025, with scheduled increases; tipped wage phases up toward 50% by 2031.
When must my employer pay me in Michigan?
Employers must set a regular payday (weekly, biweekly, semimonthly, or monthly) and pay by statutory deadlines.
Do I owe city income tax if I work remotely outside the city?
Often you’re taxed only on wages earned within the city. Remote work rules vary; check your city’s guidance and employer withholding.
How much does Detroit’s income tax reduce my paycheck?
Detroit residents pay 2.4% and nonresidents 1.2% on taxable wages, in addition to state and federal taxes.
Where can I find official Michigan withholding tables?
Michigan Department of Treasury publishes annual withholding tables and employer guidance on its website.