Estimate your 2024 Michigan net pay with state and city taxes included.
Minimum wage: $10.33/hour
Standard: 80 hours per period
Select your city to include local income tax
Michigan features a unique tax structure with a flat state income tax rate and optional city income taxes. With a median household income of $63,498 (2023 statistics), understanding Michigan's tax system is crucial for maximizing your take-home pay.
Federal tax rates follow a progressive system with seven brackets in 2024, ranging from 10% to 37%. Your applicable rate depends on your taxable income and filing status.
Michigan employs a flat tax rate of 4.25% on all taxable income. This straightforward system makes it easier to calculate your state tax liability.
FICA taxes consist of Social Security (6.2%) and Medicare (1.45%). High earners (over $200,000) pay an additional 0.9% Medicare surtax.
Michigan is unique in allowing cities to levy their own income taxes. Currently, 24 cities collect local income tax, with rates varying by residency status.
| City | Resident Rate | Non-Resident Rate |
|---|---|---|
| Detroit | 2.4% | 1.2% |
| Grand Rapids | 1.5% | 0.75% |
| Lansing | 1.0% | 0.5% |
Cities can levy their own income taxes, with residents typically paying twice the rate of non-residents. You may owe city tax where you live AND work, but credits are available to prevent double taxation.
Michigan combines a flat state tax rate with optional city income taxes. This hybrid system, plus various tax credits and exemptions, creates unique planning opportunities for residents.
Consider maximizing pre-tax deductions, claiming available tax credits, and carefully planning your residence and work locations if city taxes apply. Review all available exemptions and credits annually.