2026 Michigan State Income Tax
Effective 2026-04-28
Michigan has a statutory flat income tax of 4.25% with a per-person personal exemption indexed to inflation.
The 2026 Michigan rate
4.25%
Michigan standard deduction (or personal exemption)
The amount Breakeven subtracts from federal AGI before applying the 4.25% rate, by filing status:
| Filing status | Michigan subtraction |
|---|---|
| Single or Married filing separately | $5,800 |
| Married filing jointly | $11,600 |
| Head of household | $5,800 |
Worked examples (Single filer)
| Federal AGI | Michigan taxable | Michigan tax |
|---|---|---|
| $40,000 | $34,200 | $1,453.50 |
| $80,000 | $74,200 | $3,153.50 |
| $150,000 | $144,200 | $6,128.50 |
| $300,000 | $294,200 | $12,503.50 |
The Michigan personal exemption
Michigan subtracts a personal exemption per person from taxable income before applying the 4.25% rate. The exemption was $5,800 per person in 2025 and is inflation-adjusted annually. The calculator models it as a state-level standard deduction by filing status: $5,800 for Single and Head of Household, $11,600 for Married Filing Jointly (single exemption × 2). Households with dependents have additional $5,800-per-dependent exemptions that are not currently factored in.
The 4.05% question
In tax year 2023, Michigan's rate dropped to 4.05% under a state law that automatically lowers the rate when revenue growth exceeds inflation by a set margin. The 2024 rate returned to the 4.25% statutory baseline; Michigan courts ruled the 2023 reduction was a one-year-only event, not a permanent floor. Unless that auto-trigger fires again, 4.25% is the rate for 2026.
Detroit and other Michigan city income taxes
Michigan is one of the few states that allows cities to levy their own income tax. Detroit charges 2.4% on residents and 1.2% on non-residents who work in the city; Grand Rapids, Lansing,Saginaw, Flint, and roughly twenty other Michigan municipalities charge similar resident / non-resident splits, typically 1% / 0.5%. The calculator projects the 4.25% state portion only and does not model city withholding. Your W-2 will show city tax on a separate line if you live or work in a taxing jurisdiction.
How Michigan stacks with federal tax
Michigan state tax is owed on top of federal income tax. The Breakeven calculator projects both numbers from your year-to-date paychecks once you select Michigan as your state. For the federal side, see the 2026 federal brackets.
Sources
- Michigan Department of Treasury — Individual Income Tax — authoritative source for the rate and Form MI-1040.
- Tax Foundation — State Individual Income Tax Rates — annual cross-reference for state-tax structure and rate stability.
Note on local taxes and SDI. The calculator projects Michigan state income tax only. It does not include municipal or county income tax (where the state allows them) or state payroll surcharges like SDI / paid family leave. If you live or work somewhere with a local income tax, or in a state with an SDI surcharge, your real paycheck withholding will be higher than projected. See the methodology for the full list.
Last cross-checked on 2026-04-28. Verify with the Michigan Department of Revenue if it matters.
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Canonical reference: https://www.breakeven.tax/brackets/2026/michigan