MichiganSalary Calculator 2026 — Take-Home Pay After Federal & State Taxes

Michigan levies a flat 4.25% state income tax on all taxable income. The rate has been stable for several years, though legislation has discussed reduction tied to revenue triggers. Michigan allows personal exemptions ($5,400 per person) and does not conform to the federal standard deduction in the same way — the exemption system is its own framework. Michigan cities can levy local income taxes: Detroit charges 2.4% for residents and 1.2% for non-residents; other cities including Grand Rapids, Lansing, and Flint charge 1.5% resident / 0.75% non-resident. Workers in these cities should factor in the local rate when calculating take-home pay. Michigan exempts pension and retirement income from state tax for certain groups, particularly pre-1996 public pensions. Property taxes vary significantly by county and school district. Michigan's overall tax burden is considered moderate.