Results are estimates for educational purposes only. Based on 2026 IRS federal brackets and Michigan state tax rates. Always consult a qualified tax professional.
Michigan income tax overview
Michigan has a flat income tax rate of 4.25% on all taxable income. The state had temporarily reduced its rate to 4.05% for 2023 due to a revenue-triggered reduction, but it returned to 4.25% for 2024 and beyond. Michigan allows a personal exemption of $5,400 per taxpayer and dependent, providing meaningful relief especially for families. The state does not tax Social Security benefits. Michigan also has a significant retirement income exemption for those born before 1946, with partial exemptions for younger retirees. Many Michigan cities — including Detroit, Grand Rapids, and Lansing — levy their own local income taxes ranging from 1% to 2.4% for residents.
2026 Michigan income tax rates
Tax rate
Income range (single filer)
4.25% flat
All taxable income
Worked example: $75,000 salary in Michigan
A $75,000 salary in Michigan results in approximately $2,961 in state income tax (4.25% after personal exemption), plus $12,580 federal tax, $4,650 Social Security, and $1,088 Medicare. Annual take-home is approximately $53,721. Detroit residents add approximately $1,800 in city income tax.
Key facts: 4.25% flat rate · Social Security exempt · Detroit adds 2.4% local tax
Frequently asked questions — Michigan income tax
No. Michigan does not tax Social Security benefits. Michigan also has retirement income exemptions that vary based on your birth year and the type of retirement income.
Several Michigan cities levy local income taxes: Detroit (2.4% residents, 1.2% non-residents), Grand Rapids (1.5%/0.75%), Lansing (1%/0.5%), Flint (1%/0.5%), and about a dozen others. You pay the city tax where you work.
Michigan allows a personal exemption of $5,400 per taxpayer and each dependent in 2026. A married couple with two children would have $21,600 in exemptions before the 4.25% rate applies.
Michigan's treatment of retirement income depends on your birth year. Those born before 1946 can exempt most retirement income. Those born 1946-1952 have partial exemptions. Those born after 1952 have more limited exemptions but can still deduct Social Security.
Michigan has a law requiring the income tax rate to drop when general fund revenue grows faster than inflation. In 2022, revenue growth triggered a one-year reduction to 4.05% for tax year 2023. The rate returned to 4.25% afterward.
Compare Michigan to other states
Use our US income tax calculator to compare your take-home pay across all 50 states. You may be surprised how much location affects your net income.