Michigan payroll taxes

Michigan state income tax: Flat-rate system on wage income; employers withhold using your MI-W4. Confirm the current annual rate before payroll runs.
City income tax (where applicable): Some Michigan cities levy resident/nonresident income taxes; see the local tax table below.
FICA (federal): Social Security and Medicare—details in the FICA section.
Federal income tax (FIT): Withheld using IRS methods from your Form W-4 elections.
State Unemployment Insurance (SUI): Employer-paid only; employees do not pay Michigan UI from wages.
Pre-tax deductions: Traditional 401(k), HSA/FSA, Section 125 premiums may reduce taxable wages (FIT/state and sometimes FICA).
Post-tax deductions: Roth 401(k), garnishments, union dues, after-tax benefits reduce net pay after taxes.

How Your Michigan Paycheck Works

Start with gross pay (salary per period or hourly rate × hours, including overtime where due).
Subtract pre-tax items (401(k), HSA/FSA, cafeteria plans) to determine taxable wages.
Calculate FICA (Social Security to the annual wage base; Medicare on all wages; Additional Medicare for high earners).
Calculate federal withholding using IRS tables and your W-4.
Calculate Michigan state withholding using MI-W4 elections and the current flat rate.
If you work/reside in a taxing city, apply the local city income tax (resident/nonresident rules).
Employer separately pays Michigan SUI—this does not reduce your net pay.
Subtract any post-tax deductions to reach net pay.

Michigan unemployment insurance (SUI) — 10-year snapshot

Employees do not pay Michigan UI from wages. Employers contribute on a taxable wage base at new/employer-specific experience rates (verify your annual rate notice).

Year	Employee UI Rate	Employee Pays?	Employer Taxable Wage Base (approx.)	New Employer Rate (typ.)	Experienced Employer Rate Range (approx.)
2016	0%	No	$9,000–$9,500	~2.7%	~0.06%–10%+
2017	0%	No	$9,000–$9,500	~2.7%	~0.06%–10%+
2018	0%	No	$9,000–$9,500	~2.7%	~0.06%–10%+
2019	0%	No	$9,000–$9,500	~2.7%	~0.06%–10%+
2020	0%	No	$9,000–$9,500	~2.7%	~0.06%–10%+
2021	0%	No	$9,000–$9,500	~2.7%	~0.06%–10%+
2022	0%	No	$9,000–$9,500	~2.7%	~0.06%–10%+
2023	0%	No	$9,000–$9,500	~2.7%	~0.06%–10%+
2024	0%	No	$9,500	~2.7%	~0.06%–10%+
2025	0%	No	$9,500	~2.7%	~0.06%–10%+

Michigan salary threshold

Michigan follows federal FLSA white-collar rules. Exempt status requires meeting the current federal salary threshold and the duties tests. If either is not met, overtime is generally owed after 40 hours in a workweek.

Median Household Income — Michigan (10 years, current dollars)

Illustrative nominal values to show trend; consult the latest ACS release for precise figures.

Year	Median Household Income
2015	$51,100
2016	$53,000
2017	$55,100
2018	$57,600
2019	$59,600
2020	$59,400
2021	$62,800
2022	$65,900
2023	$69,300
2024	$71,100

Michigan Federal Insurance Contributions Act (FICA)

Social Security: 6.2% employee + 6.2% employer, up to the annual federal wage base.
Medicare: 1.45% employee + 1.45% employer on all wages.
Additional Medicare: 0.9% employee-only on wages above $200,000 (employer remains 1.45%).

Number of cities that have local income taxes

Michigan has about 24 cities with local income taxes. Residents typically pay a higher rate than nonresidents who work in the city. Most cities use 1.00% (residents) and 0.50% (nonresidents); some large cities use higher rates. Always verify the current city rate and residence/work rules each year.

Michigan city income tax (selected examples; approximate)

City	Resident Rate (approx.)	Nonresident Rate (approx.)	Notes
Detroit	~2.4%	~1.2%	Largest city; special rate structure
Grand Rapids	~1.5%	~0.75%	Verify annually
Lansing	~1.0%	~0.5%	Typical MI city rates
Flint	~1.0%	~0.5%	Resident/nonresident rules apply
Saginaw	~1.5%	~0.75%	Higher than the 1%/0.5% baseline
Pontiac	~1.0%	~0.5%	Check current ordinance
Battle Creek	~1.0%	~0.5%	Employer withholds
Jackson	~1.0%	~0.5%	Resident address matters
Muskegon	~1.0%	~0.5%	Typical city structure
Benton Harbor	~1.0%	~0.5%	Confirm annually

Michigan Wage and Hour Laws: Overtime, Pay Frequency

Overtime: Most non-exempt employees earn 1.5× the regular rate after 40 hours/week (FLSA standard).
Minimum wage: Statewide rate set by statute and adjusted periodically; check the current rate for your pay period.
Pay frequency: Employers must set regular, posted paydays (weekly/biweekly/semimonthly common) and pay on time; final-pay timelines apply at separation.
Breaks/meals: Follow federal/state requirements; minors and specific sectors may have additional rules.

Additional Michigan forms

MI-W4 — Employee’s Michigan Withholding Exemption Certificate.
City income tax forms — Registration and withholding returns for applicable cities (e.g., Detroit, Grand Rapids, Flint).
Withholding returns — Employer deposit schedule (monthly/quarterly) and annual reconciliation with W-2 filing.
UI Employer Registration & Rate Notice — Michigan UI account setup and yearly rate assignment.
New Hire Reporting — Report hires/rehires within the required timeframe.
Required workplace posters — State wage/hour, UI, safety, and federal postings.

FAQs — Michigan Salary Paycheck Calculator

How do I use a Michigan Salary Paycheck Calculator to estimate net pay?

Enter gross pay and pay frequency, your federal W-4 and MI-W4 details, pre-tax benefits (401(k), HSA/FSA), and post-tax deductions. The calculator applies FICA, federal withholding, Michigan state withholding, and any applicable city income tax to estimate per-paycheck and annual take-home.

Why do I see a city income tax on my Michigan pay stub?

About 24 Michigan cities levy local income taxes. If you live or work in one of these cities, your employer must withhold the resident or nonresident rate, as applicable.

Do Michigan employees pay unemployment tax from wages?

No. Michigan UI is funded by employer contributions only. Employees will not see a state UI deduction line on their pay stubs.

What salary makes me exempt from overtime in Michigan?

Michigan follows federal FLSA rules. Exempt status requires meeting the current federal salary threshold and the appropriate duties tests. If not, overtime is due after 40 hours in a week.

How are bonuses and commissions taxed on a Michigan paycheck?

They’re subject to federal withholding (IRS supplemental methods), FICA, Michigan state withholding, and—if applicable—city income tax. Employer UI remains an employer expense and doesn’t reduce your net.

Which form adjusts my Michigan state withholding?

Use MI-W4 to set or update your Michigan withholding elections. Update after life events, address changes, or when holding multiple jobs. Also update your city withholding status if you move.

How does residency affect a city’s income tax rate?

Residents pay the resident rate on all taxable income; nonresidents generally pay the nonresident rate on wages earned in the city. Confirm your residence and work locations so payroll withholds correctly.

Why is my coworker’s take-home different at the same salary?

Differences in W-4/MI-W4 elections, city tax exposure, pre-tax benefits, Roth vs. traditional contributions, supplemental wage methods, and garnishments can change taxable wages and withholding, producing different net pay.

Does the calculator include HSA/FSA and 401(k) effects?

Yes. Enter pre-tax contributions; they reduce taxable wages for FIT/state and sometimes FICA, typically improving take-home versus after-tax deductions.

Michigan Salary Paycheck Calculator