Michigan Income Tax Calculator
Estimate your Michigan income tax burden
Updated for 2023 tax year on Mar 01, 2023
Income tax calculators by state
Michigan state taxes
Quick Michigan tax facts
- State income tax: 4.25%
- Local income tax: only in some cities
- State sales tax: 6%
- Property tax: 1.64%
- Gas tax: 44.1 cents per gallon
- Tobacco tax: $2 per pack of 20 cigarettes
- Insurance premium tax: 1.07% to 2.5%
From Wikipedia
Michigan income taxes
Michigan takes a straightforward approach to income tax, maintaining a flat rate of 4.25%. Regardless of the amount you earn, this percentage of your taxable income will be payable to the state.
In terms of payroll taxes, there are specific contributions that employers and employees make. One of the primary levies is the Unemployment Insurance Tax, which is employer-funded and has a standard rate of 2.37% for new employers.
Some residents and nonresidents may be subject to a city income tax. The cities imposing this tax include Detroit, Grand Rapids, Lansing, and Flint, among others.
Michigan doesn’t offers a standard deduction but residents can claim exemptions.
Calculate your income tax in Michigan
Calculating your Michigan state income tax is similar to the steps we listed on our Federal income tax calculator:
- Determine your filing status
- Work out your adjusted gross income [Gross income − Retirement contributions = Adjusted gross income]
- Calculate your state taxable income [Adjusted gross income − (Itemized deductions + Exemptions) = State taxable income]
- Figure out your state/local tax liability [State taxable income × State tax rate = State tax liability]
- Deduce your state payroll tax liability [Gross income × State payroll tax rate = State payroll tax liability]
- Add up all state and local taxes [State tax liability + State payroll tax liability = Total state income taxes]
State income tax brackets
Refer to Tax Foundation for more details.
Tax year | Filing status | Taxable income | Rate |
---|---|---|---|
2022 2021 2020 |
Single Married, Filing Jointly or Widow(er) Married, Filing Separately Head of Household |
Any | 4.25% |
Local income tax
Tax year | City | Rate |
---|---|---|
2022 2021 2020 |
Albion | 1% |
Battle Creek | 1% | |
Big Rapids | 1% | |
Benton Harbor | 1% | |
Detroit | 2.4% | |
East Lansing | 1% | |
Flint | 1% | |
Grand Rapids | 1.5% | |
Grayling | 1% | |
Hamtramck | 1% | |
Highland Park | 2% | |
Hudson | 1% | |
Ionia | 1% | |
Jackson | 1% | |
Lansing | 1% | |
Lapeer | 1% | |
Muskegon | 1% | |
Muskegon Heights | 1% | |
Pontiac | 1% | |
Port Huron | 1% | |
Portland | 1% | |
Saginaw | 1.5% | |
Springfield | 1% | |
Walker | 1% |
State exemptions
There is state-level exemptions for all type of filers and dependents. Refer to Tax Foundation for more details.
Tax year | Filing status | Personal exemption amount |
---|---|---|
2022 | Single Married, Filing Separately Head of Household |
$5,000 |
Married, Filing Jointly or Widow(er) | $10,000 | |
Dependent(s) | $5,000 | |
2021 | Single Married, Filing Separately Head of Household |
$4,900 |
Married, Filing Jointly or Widow(er) | $9,800 | |
Dependent(s) | $4,900 | |
2020 | Single Married, Filing Separately Head of Household |
$4,400 |
Married, Filing Jointly or Widow(er) | $8,800 | |
Dependent(s) | $4,400 |
Michigan sales tax
With a flat rate of 6%, Michigan’s sales tax is applied to most goods and services.
Michigan property tax
The property tax landscape in Michigan is variable, with rates differing depending on the city or county. Nevertheless, the state average is around 1.64%.
Michigan capital gains tax
In Michigan, capital gains are subject to the state income tax.
Michigan gas tax
The gas tax in Michigan is a hefty 44.1 cents per gallon.
Michigan tobacco tax
Michigan’s tobacco tax is $2 per pack of 20 cigarettes.
Michigan insurance tax
In Michigan, insurance premium tax rates range from 1.07% to 2.5%, depending on the type of insurance. Property and casualty insurance, for instance, is subject to higher rates than life insurance.
FAQs
How do I calculate my Michigan income tax?
Calculate your Michigan state income tax with the following six steps.
- Determine your filing status
- Gross income − Retirement contributions = Adjusted gross income
- Adjusted gross income − (Itemized deductions + Exemptions) = State taxable income
- State taxable income × State tax rate = State tax liability
- Gross income × State payroll tax rate = State payroll tax liability
- State tax liability + State payroll tax liability = Total state income tax
How much is $55000 a year after taxes in Michigan?
With an annual salary of $55,000, a single filer will have an income tax of $11,200.50 and be able to bring home $43,799.50.