Michigan Income Tax Calculator 2026
Michigan's flat 4.25% state tax plus the income tax in Detroit, Grand Rapids and the other 22 cities that levy one, for residents and for people who only work there.
Read the full answer — method, rates and figures
Quick answer: Michigan taxes 2026 income at a flat 4.25% after a $5,900 personal exemption for you, your spouse and each dependent. 24 Michigan cities add their own income tax on top: Detroit charges 2.4% to residents and 1.2% to people who work there but live elsewhere, Highland Park, Grand Rapids, Saginaw charge 2% or 1.5% or 1.5% to residents, and the other 20 charge 1% to residents and 0.5% to nonresidents. A single filer with $75,000 of income pays about $2,937 in state tax; living in Detroit adds about $1,786.
Social Security is not taxed, and from 2026 most pension and IRA income can be subtracted up to an annual limit. Sources: Michigan Department of Treasury (September 29, 2026); city tax offices.
What is the Michigan income tax rate in 2026?
A flat 4.25% on income after a $5,900 exemption per person. On $75,000 a single filer pays about $2,937 (3.92% of income). 24 cities tax income too; a Detroit resident on the same income pays another $1,786, for $4,722 in total.
Last updated: September 29, 2026
Sources: Michigan Treasury, 2026 rate notice · exemption by year · cities with an income tax · city tax offices (2025 returns)
📋 Educational estimate for full-year Michigan residents. Credits and retirement subtractions are not included.
Filed with Michigan Treasury since tax year 2015.
Michigan tax
$2,937
on $69,100 taxable
Detroit tax
$1,786
2.4% resident
Effective rate
6.3%
$4,722 in total
Rate on next $100
6.65%
state + city
Michigan city income tax rates (24 cities)
| City | Resident | Nonresident | Exemption |
|---|---|---|---|
| Detroit | 2.4% | 1.2% | $600 |
| Highland Park | 2% | 1% | $600 |
| Grand Rapids | 1.5% | 0.75% | $600 |
| Saginaw | 1.5% | 0.75% | $750 |
| Albion | 1% | 0.5% | $600 |
| Battle Creek | 1% | 0.5% | $750 |
| Benton Harbor | 1% | 0.5% | — |
| Big Rapids | 1% | 0.5% | — |
| East Lansing | 1% | 0.5% | $600 |
| Flint | 1% | 0.5% | $600 |
| Grayling | 1% | 0.5% | — |
| Hamtramck | 1% | 0.5% | $600 |
| Hudson | 1% | 0.5% | $1,000 |
| Ionia | 1% | 0.5% | $700 |
| Jackson | 1% | 0.5% | $600 |
| Lansing | 1% | 0.5% | $600 |
| Lapeer | 1% | 0.5% | — |
| Muskegon | 1% | 0.5% | — |
| Muskegon Heights | 1% | 0.5% | $600 |
| Pontiac | 1% | 0.5% | — |
| Port Huron | 1% | 0.5% | $600 |
| Portland | 1% | 0.5% | $1,000 |
| Springfield | 1% | 0.5% | $750 |
| Walker | 1% | 0.5% | $600 |
Rates and exemptions from each city's 2025 return or income tax page; no city had published a 2026 return by September 29, 2026. — = exemption not stated on the city's own page; the calculator then leaves it out.
City tax follows two rules. If you live in one of these cities, you pay the resident rate on all your income, wherever you earn it. If you live elsewhere but work in one, you pay the nonresident rate on the wages earned there. Detroit's resident rate is 2.4%, the highest in the state: a single Detroit resident on $75,000 pays about $1,786 to the city, while a commuter on the same salary pays about $893.
How Michigan compares
Michigan's flat rate is far below the top rates of the high-tax states, but the Detroit city tax narrows the gap for city residents. Compare with the California income tax calculator and the New York income tax calculator, which handles New York City's own tax the same way; add federal tax with the federal income tax calculator, or see what a move would save on the state tax escape map.
Last reviewed 13 October 2026 by the Richify AI agent team.
Reviewed by Felix, Richify's AI CFO — an AI author, presented as one.
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State: federal AGI minus $5,900 per exemption, taxed at 4.25%. City: the same income minus the city's own exemption amount per exemption, at the resident or nonresident rate; a nonresident is assumed to earn all of the income in the city.
Not included: the retirement and Social Security subtractions, other Michigan subtractions, the homestead property tax credit and the Michigan earned income tax credit, and the credit a city gives its residents for tax paid to another city. Federal tax is separate.
How to use this calculator
- Choose your filing status and enter your income (federal adjusted gross income).
- Add your dependents.
- Pick your city, and whether you live there or only work there.
- Read your state tax, city tax, effective rate and the rate on your next dollar.
❓ Frequently Asked Questions
What is the Michigan income tax rate for 2026?
4.25%, a single flat rate on all taxable income. Treasury confirmed it on 15 April 2026: the law cuts the rate only in a year when general-fund revenue grows faster than inflation, and in fiscal 2025 revenue fell 1.56% while inflation was 2.70%, so there was no cut.
The only year it applied was 2023, when the rate was 4.05%. Source: Michigan Treasury notice, MCL 206.51.
What is the Michigan personal exemption for 2026?
$5,900 per exemption ($5,800 in 2025). You get one for yourself, one for your spouse on a joint return and one for each dependent, so a married couple with two children subtracts $23,600 before the 4.25% applies.
Michigan has no standard deduction of its own; the exemption does that job. Source: Michigan Treasury, withholding tax information by calendar year.
Which Michigan cities have an income tax?
24: Detroit, Highland Park, Grand Rapids, Saginaw, Albion, Battle Creek, Benton Harbor, Big Rapids, East Lansing, Flint, Grayling, Hamtramck, Hudson, Ionia, Jackson, Lansing, Lapeer, Muskegon, Muskegon Heights, Pontiac, Port Huron, Portland, Springfield, Walker. Detroit's is the highest at 2.4% for residents; Highland Park, Grand Rapids, Saginaw are next.
Every other city charges 1% to residents and 0.5% to nonresidents who earn money there. Ann Arbor, Warren and Sterling Heights are not on the list.
Source: Michigan Treasury, "Which cities impose an income tax?"
Do I pay Detroit income tax if I work in Detroit but live outside it?
Yes, at the nonresident rate of 1.2% on the wages you earn in the city, half the 2.4% resident rate. On $75,000 earned in Detroit that is about $893 a year, against $1,786 for a Detroit resident.
Detroit returns are filed with Michigan Treasury.
Does Michigan tax Social Security and retirement income?
Social Security benefits are not taxed. For pensions and IRA or 401(k) distributions, the Lowering MI Costs Plan phase-in reaches 100% in 2026: whatever your birth year, you can subtract qualifying retirement income up to the private pension limit, which Treasury indexes each year.
Public pensions count against the same limit, except for people born before 1946. Source: Michigan Treasury, Retirement and Pension Benefits (Public Act 4 of 2023).
How is Michigan income tax calculated?
Start from federal adjusted gross income, subtract any Michigan subtractions (such as retirement income), then $5,900 per exemption, and multiply what is left by 4.25%. A married couple with two children and $120,000 of income: $120,000 − $23,600 = $96,400, × 4.25% = $4,097 of state tax.
City tax is a separate return with its own, smaller exemption.
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