Michigan Income Tax Calculator 2026 โ€” Flat 4.25% + City Tax

Calculate your 2026 Michigan state income tax. Flat 4.25% with $5,600 personal exemption, optional Detroit/city tax, and retirement income exemptions. MI vs OH, IN, WI, IL comparison.

$
= $6,667 / month
$5,600 per exemption (no standard deduction)
$
Partial/full exemption based on birth year
Social Security is always exempt from MI tax
Common salaries:
$0
MI State Income Tax
$0
City Income Tax
$0
Federal Income Tax
0%
MI Effective Rate
0%
Combined Effective Rate
$0
After All Taxes Income

Michigan Tax Computation

Step Description Amount

Tax Computation Summary

How to Use This Michigan Income Tax Calculator

Enter your annual gross income, select your filing status, and enter total exemptions (1 for single, 2 for married, plus dependents). Michigan has no standard deduction โ€” the $5,600 personal exemption per person reduces taxable income. Optionally add city income tax if you live or work in Detroit or another Michigan city.

Michigan state tax is paid in addition to federal income tax. City taxes are filed separately but shown here for total burden awareness.

The Formula

MI Taxable Income = Gross Income โˆ’ (Exemptions ร— $5,600) โˆ’ Retirement Exemptions
MI State Tax = max(0, MI Taxable Income) ร— 4.25%
City Tax = Gross Income ร— city rate (0%โ€“2.4%)
MI Effective Rate = MI State Tax รท Gross Income ร— 100
Note: Social Security income is always exempt from Michigan tax

Example

Kevin, Single, $80,000 salary in Michigan 2026 (Detroit resident):
MI exemption: 1 ร— $5,600 = $5,600
MI taxable income: $80,000 โˆ’ $5,600 = $74,400
MI state tax: $74,400 ร— 4.25% = $3,162
Detroit city tax: $80,000 ร— 2.4% = $1,920
Total MI+Detroit: $5,082 | Combined MI effective rate: 6.35%

Michigan's High Personal Exemption

Michigan's $5,600 personal exemption is among the highest in the nation. A family of four (two adults, two children) receives $22,400 in exemptions, meaning $22,400 of income is completely tax-free at the state level. This offsets the relatively high 4.25% flat rate for lower-income households and families with multiple dependents.

Michigan City Income Tax

About 24 Michigan cities levy a local income tax. Detroit's 2.4% rate is the highest in the state. Other cities including Grand Rapids, Lansing, Flint, Saginaw, and Muskegon charge 1% for residents. If you live in or work in one of these cities, your city tax is paid separately from your state return using city-specific forms.

Extended

MI vs Neighboring States Comparison

Side-by-side Michigan, Ohio, Indiana, Wisconsin, Illinois, and Minnesota tax comparison

State income tax comparison at your current income. Single filer, standard deductions, no city taxes for comparison purposes.

StateTax StructureState TaxEffective RateAfter-State Income

Your total tax burden including federal, Michigan state, city (if any), and FICA payroll taxes.

Tax ComponentAmount% of Gross

Michigan state tax at common income levels using current filing status and exemption settings.

IncomeMI TaxableMI State TaxEffective RateMonthly After MI Tax

Frequently Asked Questions

What is the Michigan income tax rate for 2026?
Michigan has a flat income tax rate of 4.25% on all taxable income. Unlike graduated systems, every dollar above the personal exemption is taxed at the same 4.25% rate. Michigan briefly reduced this rate in 2023 (to about 4.05%) due to a revenue trigger provision, but it reverted to 4.25% for subsequent years.
What is the Michigan personal exemption for 2026?
Michigan's personal exemption is $5,600 per exemption in 2026, one of the highest personal exemptions of any state. Single filers claim one exemption ($5,600), married filing jointly claim two ($11,200), and additional exemptions apply for each dependent. Unlike a standard deduction, Michigan has no separate standard deduction โ€” the exemptions serve this purpose.
Does Michigan tax retirement income?
Michigan taxes most retirement income, but with important exceptions based on birth year. Those born before 1946 can deduct all qualifying pension/IRA income. Those born 1946โ€“1952 can deduct up to $20,000 (single) or $40,000 (married) of pension income. Those born after 1952 receive limited exemptions. Social Security is exempt from Michigan income tax regardless of birth year.
What is Detroit's city income tax?
Detroit levies a city income tax of 2.4% on residents and 1.2% on non-residents who work in Detroit. This is separate from Michigan state income tax and is one of the highest city income taxes in the state. Most other Michigan cities that levy an income tax charge 1% for residents (and 0.5% for non-residents). The city tax is filed separately from your state return.
How does Michigan compare to Ohio, Indiana, Wisconsin, Illinois, and Minnesota?
Michigan's 4.25% flat rate is higher than Ohio (2.75% above $30K) and Indiana (3.05%), similar to Illinois (4.95% flat), and lower than Minnesota's top graduated rate (9.85%). Wisconsin uses graduated rates up to 7.65%. For most middle-income earners, Ohio and Indiana are significantly cheaper for state income tax than Michigan.