Michigan Paycheck Calculator
Calculate your take-home pay after federal & Michigan taxes
Updated for 2023 tax year on Mar 15, 2023
Paycheck calculators by state
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
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:
- figure out your filing status
- work out your adjusted gross income [Net income – Adjustments = Adjusted gross income]
- calculate your taxable income [Adjusted gross income – (Itemized deductions + Exemptions) = Taxable income]
- understand your income tax liability [Taxable income × Income tax rate = Income tax liability]
- 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.