Michigan paycheck calculator 2026
Michigan withholds a flat 4.25% of wages after a $5,900 deduction for each exemption claimed on Form MI-W4 (2026).
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Federal tax on a bonus paid on its own check is a flat 22% (37% above $1M of bonuses in the year). Your W-4 doesn't change it.
Per paycheck. Calculating from gross pay → other amounts
No state income tax on wages here.
More W-4, deductions and employer settings
- Standard deduction $16,100 single, $32,200 married jointly, $24,150 head of household
- Social Security 6.2% up to $184,500 · Medicare 1.45% (+0.9% over $200,000)
- FUTA 0.6% on the first $7,000 · bonus withholding 22%
- 401(k) limit $24,500 ($32,500 at 50+, $35,750 at 60–63)
Paycheck breakdown
Employer taxes (on top of gross pay)
Where the employer's money goes
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Michigan payroll taxes and rules for 2026
Michigan withholds a flat 4.25% of wages after a $5,900 deduction for each exemption claimed on Form MI-W4 (2026). Some cities add their own income tax, led by Detroit at 2.4% for residents and 1.2% for nonresidents. There are no employee-paid state disability or leave programs.
- Income tax
- 4.25% flat · Employee form: MI-W4
- Each MI-W4 exemption (employee, spouse, dependents) is worth $5,900 a year in 2026, up from $5,800. There is no standard deduction in withholding.
- If an employee gives no valid MI-W4, withhold on total compensation with zero exemptions. The federal W-4 cannot be used in its place.
- Michigan follows federal rules for fringe benefits, so traditional 401(k) deferrals and cafeteria plan deductions are not taxed for withholding.
- Employers must send Treasury a copy of any MI-W4 that claims 10 or more exemptions or claims exemption from withholding, with some exceptions.
- Employee deductions
- City income tax: Detroit 2.4% resident, 1.2% nonresident; most other taxing cities 1% and 0.5% Applied after a $600 deduction per exemption. Residents pay on all wages; nonresidents pay on wages earned in the city.
- Employer taxes
- State unemployment insurance: 2.7% for new non-construction employers on the first $9,000 of wages 2026 rates run from 0.06% to 12.2% (15.2% with penalty). New construction employers pay 5.0%. Delinquent employers pay on a $9,500 wage base.
- Local taxes
- Michigan cities may levy an income tax under the Uniform City Income Tax Act. Detroit is the largest at 2.4% for residents and 1.2% for nonresidents. Most other taxing cities charge 1% for residents and 0.5% for nonresidents. Each exemption reduces city-taxable wages by $600 a year. Detroit withholding is filed with the Michigan Department of Treasury.
- Bonuses
- Bonuses and other payments made separately from regular payroll are withheld at 4.25% of the payment, with no adjustment for exemptions. Detroit applies its rate to the whole bonus in the same way.
- Minimum wage 2026
- $13.73/hour Applies to employers with 2 or more employees. Scheduled to rise to $15.00/hour on January 1, 2027.
- Pay frequency
- Depends on the type of work. Michigan's Payment of Wages and Fringe Benefits Act sets weekly, biweekly, semimonthly or monthly paydays by occupation.
- Final paycheck
- Set by the Payment of Wages and Fringe Benefits Act (MCL 408.475). Check the statute for the deadline that applies to discharged and resigning employees.
- New-hire reporting
- Within 20 calendar days after the date of hire or rehire.
- Reciprocity
- Illinois, Indiana, Kentucky, Minnesota, Ohio and Wisconsin. Michigan employers do not withhold Michigan tax from residents of these states who work in Michigan.
Checked against official sources on October 5, 2026:
- Michigan Treasury, Form 446 2026 Michigan Income Tax Withholding Guide
- Michigan Treasury, Form 5469 2026 City of Detroit Income Tax Withholding Guide
- Michigan Treasury, 2026 Withholding Tax Forms
- Michigan UIA, Unemployment Insurance Taxes
- Michigan UIA, Taxable Wage Base
- Michigan Legislature, MCL 408.475
- U.S. Department of Labor, State Minimum Wage Laws
- U.S. Department of Labor, State Payday Requirements
- HHS Office of Child Support Services, State New Hire Reporting requirements
Take-home pay in Michigan by salary
| Salary | Federal tax | FICA | Michigan taxes | Take-home / year | Per paycheck | Employer cost |
|---|---|---|---|---|---|---|
| $40,000 | $2,620 | $3,060 | $1,449 | $32,871 | $1,264 | $43,345 |
| $60,000 | $5,020 | $4,590 | $2,299 | $48,091 | $1,850 | $64,875 |
| $80,000 | $8,770 | $6,120 | $3,149 | $61,961 | $2,383 | $86,405 |
| $100,000 | $13,170 | $7,650 | $3,999 | $75,181 | $2,892 | $107,935 |
| $150,000 | $24,734 | $11,475 | $6,124 | $107,667 | $4,141 | $161,760 |
Single filer, paid every two weeks, 2026 W-4 with no adjustments, default Michigan withholding settings, no 401(k) or benefits, new-employer unemployment rate. Michigan taxes include state income tax and employee-paid state programs; local taxes are not included unless the default setting includes them.
How the federal part works, step by step: the 2026 paycheck guide · Massachusetts · Minnesota
Michigan paycheck questions
How much is a Michigan exemption worth in 2026?
$5,900 a year per exemption claimed on the MI-W4. For a biweekly payroll that is $226.92 per exemption per paycheck before the 4.25% rate is applied.
Can we use the federal W-4 for Michigan?
No. Michigan requires its own MI-W4. If an employee does not give you a valid one, withhold with zero exemptions.
How is Detroit city tax withheld?
Take gross pay, subtract $600 a year per exemption claimed on Form 5527 (DW-4), and multiply by 2.4% for residents or 1.2% for nonresidents who work mainly in Detroit. For a weekly payroll each exemption is $11.54.
What rate applies to a bonus?
If the bonus is paid separately from regular wages, withhold 4.25% of the full bonus with no exemption adjustment. City tax is also taken from the full bonus.
How much is $60,000 a year after taxes in Michigan?
About $48,091 a year, or $1,850 every two weeks, for a single filer with no other W-4 adjustments in 2026. Federal income tax is $5,020, Social Security and Medicare $4,590, and Michigan taxes and payroll deductions $2,299.
What does a $60,000 employee cost an employer in Michigan?
$64,875 a year before benefits: the salary plus the 7.65% FICA match, federal unemployment (FUTA) and Michigan unemployment insurance at the new-employer rate of 2.7% on the first $9,000.
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