Michigan Paycheck Calculator

Calculate your take-home pay after federal & Michigan taxes

Updated for 2023 tax year on Mar 15, 2023

What was updated? 2023 federal FICA, income tax rates & standard deduction

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Paycheck calculator for Michigan

Overview of Michigan

Michigan has a population of over 9 million (2019). It is widely known as the center of the United States automotive industry, with the Big Three all headquartered in Detroit. The median household income is $54,909 (2017).

Brief summary:

  • the income tax is a flat rate of 4.25%
  • local income tax ranging from 1% to 2.4%
  • no state-level payroll tax
  • able to claim exemptions
Michigan United States

From Wikipedia

Understanding your Michigan paycheck

When you receive your Michigan paycheck, you may notice key components impacting your take-home pay. Before your hard-earned dollars reach your bank account, Uncle Sam takes a bite out of your income through federal income taxes and FICA taxes. Both employees and employers contribute to FICA taxes, which include Social Security and Medicare. However, self-employed individuals are responsible for the entire amount.

The IRS requires you to fill out Form W-4 when starting a new job or updating your tax withholding information. Your pay frequency, be it weekly or monthly, can also affect the size of your paycheck. Review and update your W-4 regularly, especially after significant life events like marriage or the birth of a child.

Your marital status and pre-tax deductions play crucial roles in shaping your paycheck. Contributions to a 401(k) or health savings account can reduce your taxable income, and your filing status (single, married, or head of household) can impact your tax bracket.

In addition to federal taxes, you’ll find state income tax deductions on your Michigan paycheck. The state levies a flat income tax rate, making calculating your state tax liability easy. However, some cities in Michigan also impose local income taxes, which may vary by city and require additional calculations.

While Michigan doesn’t offer a state standard deduction, taxpayers can claim personal exemptions on their state returns. The number of exemptions and the exemption amount depends on factors such as age, blindness, or disability.

Calculate your Michigan paycheck

Michigan tax year starts from October 01 the year before to September 30 the current year. So the tax year 2022 will start from October 01 2021 to September 30 2022.

Calculating your Michigan state income tax is similar to the steps we listed on our Federal paycheck calculator:

  1. figure out your filing status
  2. work out your adjusted gross income [Net income – Adjustments = Adjusted gross income]
  3. calculate your taxable income [Adjusted gross income – (Itemized deductions + Exemptions) = Taxable income]
  4. understand your income tax liability [Taxable income × Income tax rate = Income tax liability]
  5. minus any tax liability, deductions, withholdings [Net income – (Income tax liability + Pre-tax deductions + Post-tax deductions + Withholdings) = Your paycheck]

State payroll tax

There is no state-level payroll tax.

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 standard deduction

There is no state-level standard deductions.

State exemptions

There are state-level exemptions for all types 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

FAQs

What taxes do Michiganians pay?

Michiganians only need to pay federal income tax and a flat state-level income tax rate of 4.25%.

How much do you make after taxes in Michigan?

The take-home pay is $42,599.50 for a single resident in Detroit with an annual income of $55,000.
For a married couple with a combined annual income of $110,000, the take-home pay is $85,199.

How much taxes are deducted from a $55,000 paycheck in Michigan?

The total taxes deducted for a single filer are $933.38 monthly or $430.79 bi-weekly.