Paycheck Calculator Michigan
This paycheck calculator for Michigan shows your 2026 take-home pay after federal income tax, Social Security, Medicare, Michigan's 4.25% state tax and the income tax of any of the 24 Michigan cities that charge one, and works out what the new 2026 tips and overtime deductions are worth to you.
Your take-home pay
$0.00
| Line | Per paycheck | Per year |
|---|
Show the working
An estimate of 2026 withholding using the IRS method (Publication 15-T and the 2026 Form W-4), Michigan Treasury Form 446 and the city withholding rules, not tax advice. Whether your tips or overtime qualify is decided on your tax return. Your payroll system, your W-4, your MI-W4 and your year-to-date pay can change the real figures by a few dollars.
Runs in your browser. Nothing uploaded.
This Paycheck Calculator Michigan works out your 2026 take-home pay after federal income tax, Social Security, Medicare, Michigan’s flat 4.25% state tax and the income tax of any of the 24 Michigan cities that charge one. It also shows what the new 2026 deductions for tips and overtime are worth, at both the federal and the Michigan level.
About the Paycheck Calculator Michigan
Every Michigan paycheck calculator gets the 4.25% right. Where they differ is the rest. The Paycheck Calculator Michigan handles the parts that actually change a Michigan paycheck in 2026:
- The 2026 exemption. $5,900 for each exemption on your MI-W4, from Treasury’s 2026 withholding guide. Some calculators still use last year’s $5,800.
- All 24 city taxes. Detroit, Grand Rapids, Lansing, Flint, Saginaw and the rest, each with its own rate and exemption amount, for residents and for people who only work there.
- Two cities. Live in one taxing city and work in another, and the calculator splits the tax the way the city ordinances do.
- Tips and overtime. From 2026, Michigan deducts the same qualified tips and overtime you deduct federally. None of the Michigan paycheck calculators we checked mention it.
- The working. Every line, with the formula and your numbers in it.
The Paycheck Calculator Michigan runs in your browser. Your pay isn’t sent anywhere or saved.
How to use the Paycheck Calculator Michigan
- Enter your pay. Hourly or salary, and how often you’re paid. For hourly pay, add your overtime hours a week.
- Copy your federal W-4. Filing status, Step 2, dependent credits, and anything in Step 4.
- Add your MI-W4 and your city. Your number of Michigan exemptions, the city you live in and the city you work in. Pick “Not a taxing city” if it isn’t one of the 24.
- Add tips. Enter qualified tips for the year. Hourly overtime is worked out for you. Tick the last box only if you put the deductions on your W-4.
A worked example
The page opens on a single filer earning $22 an hour, 40 hours a week plus 6 hours of overtime, paid every two weeks, one MI-W4 exemption, living outside any taxing city.
- Gross pay. 40 × $22 plus 6 × $33 is $1,078 a week, so $2,156 a paycheck and $56,056 a year.
- Michigan tax. $56,056 less one $5,900 exemption is $50,156. At 4.25% that’s $2,131.63 a year, $81.99 a paycheck.
- Federal tax. $174.87 a paycheck from the 2026 IRS tables. Social Security $133.67, Medicare $31.26.
- Take-home. $1,734.21 every two weeks.
Now the 2026 deductions. The overtime premium, the “half” in time-and-a-half, is $22 × 0.5 × 6 hours × 52 weeks = $3,432 a year. Put that on Step 4(b) of the federal W-4 and federal withholding drops to $159.03, so take-home rises to $1,750.05. The same $3,432 also comes off your Michigan income, worth about $146, which you get back when you file.
Michigan’s new deduction for tips and overtime
On October 7, 2025, Michigan passed 2025 PA 24. It lets you deduct, on your Michigan return, the same qualified tips and qualified overtime you deduct on your federal return. Michigan Treasury’s notice of January 6, 2026 sets out the rules:
- It covers tax years 2026, 2027 and 2028 only. 2025 isn’t covered in Michigan, though it was federally.
- Eligibility follows the federal definitions, so whatever you deduct federally you deduct in Michigan.
- Nonresidents deduct only tips and overtime earned for work done in Michigan.
What it doesn’t do is change your paycheck. Treasury’s 2026 withholding guide still tells employers to withhold 4.25% of pay after exemptions, with no adjustment for tips or overtime. So the Michigan saving arrives as a smaller bill or a bigger refund in spring 2027. The Paycheck Calculator Michigan shows it that way, and never as a higher take-home.
| Federal (2026 W-4) | Limit | Michigan (2025 PA 24) |
|---|---|---|
| Qualified tips | Up to $25,000 | Same amount, 2026 to 2028 |
| Overtime premium | Up to $12,500 ($25,000 joint) | Same amount, 2026 to 2028 |
| Income limit on the W-4 | Under $150,000 ($300,000 joint) | Follows the federal deduction |
| Can lower your paycheck? | Yes, on W-4 Step 4(b) | No, it comes back at filing |
Add $8,000 of tips to the example and the deduction becomes $11,432: about $486 off your Michigan tax, and $52.76 less federal withholding each paycheck if you claim it on your W-4.
How Michigan state tax is withheld
Michigan’s rate is flat: 4.25% for everyone, at every income. Treasury’s 2026 guide (Form 446) gives the method:
- Take your pay for the period. 401(k) contributions and pre-tax health insurance come off first, as they do federally.
- Subtract your exemptions: $5,900 a year for each one on your MI-W4, divided by your number of paychecks.
- Withhold 4.25% of what’s left, plus any extra you asked for.
| Salary, one exemption | Michigan tax a year | Per paycheck (every two weeks) |
|---|---|---|
| $40,000 | $1,449.25 | $55.74 |
| $60,000 | $2,299.25 | $88.43 |
| $80,000 | $3,149.25 | $121.13 |
| $100,000 | $3,999.25 | $153.82 |
Each extra exemption saves $250.75 a year ($5,900 × 4.25%). Bonuses paid separately from regular pay are withheld at a straight 4.25% with no exemption.
Michigan city income taxes
Only 24 Michigan cities tax income. Most of the state, including most suburbs, doesn’t. Every city charges nonresidents who work there half its resident rate.
| City | Resident | Nonresident | Exemption |
|---|---|---|---|
| Detroit | 2.4% | 1.2% | $600 |
| Highland Park | 2% | 1% | $600 |
| Grand Rapids | 1.5% | 0.75% | $600 |
| Saginaw | 1.5% | 0.75% | $750 |
| Battle Creek, Benton Harbor, Springfield | 1% | 0.5% | $750 |
| Hudson, Portland | 1% | 0.5% | $1,000 |
| Ionia | 1% | 0.5% | $700 |
| Grayling | 1% | 0.5% | $3,000 |
| Albion, Big Rapids, East Lansing, Flint, Hamtramck, Jackson, Lansing, Lapeer, Muskegon, Muskegon Heights, Pontiac, Port Huron, Walker | 1% | 0.5% | $600 |
City tax works like the state’s: a flat rate on pay after exemptions. One difference matters. Cities withhold on gross earnings, so a 401(k) contribution lowers your Michigan tax but not your city tax.
Detroit, step by step
Treasury runs Detroit’s income tax and publishes its own example. On $200 a week with 3 exemptions, the weekly exemption is $11.54 each, so $34.62 comes off. Tax is 2.4% of $165.38, which is $3.97 for the week. The Paycheck Calculator Michigan reproduces that to the cent.
For a Detroit resident on $60,000, paid every two weeks: ($60,000 − $600) × 2.4% = $1,425.60 a year, $54.83 a paycheck. Someone who lives outside Detroit but works there pays the 1.2% nonresident rate, $712.80 a year.
Living in one taxing city and working in another
You don’t pay both cities in full. The city you work in takes its nonresident rate, and your home city takes its resident rate less that amount. A Detroit resident earning $60,000 who works in Grand Rapids pays Grand Rapids 0.75%, which is $445.50, and Detroit the remaining 1.65%, which is $980.10. The total is the same $1,425.60 as working in Detroit. If the work city’s rate is higher than your home city’s, your home city takes nothing.
Your employer withholds for the city you work in. It may not withhold for your home city, in which case you pay that part with your home city’s return or with estimated payments.
Take-home pay at a glance
Single filer, paid every two weeks, one MI-W4 exemption, no 401(k) or benefits. Every figure is from the Paycheck Calculator Michigan.
| Salary | No city tax | Living in Grand Rapids | Living in Detroit |
|---|---|---|---|
| $40,000 | $1,264.26 | $1,241.53 | $1,227.89 |
| $50,000 | $1,556.96 | $1,528.46 | $1,511.36 |
| $60,000 | $1,849.64 | $1,815.37 | $1,794.81 |
| $80,000 | $2,383.09 | $2,337.28 | $2,309.80 |
| $100,000 | $2,891.56 | $2,834.21 | $2,799.81 |
On $60,000 a Detroit resident takes home $54.83 less every two weeks than someone in a city with no income tax, about $1,426 a year.
Hourly pay
40 hours a week, no overtime, paid every two weeks, no city tax:
| Hourly rate | Gross per paycheck | Take-home per paycheck |
|---|---|---|
| $15 | $1,200.00 | $1,006.69 |
| $18 | $1,440.00 | $1,189.33 |
| $20 | $1,600.00 | $1,311.09 |
| $25 | $2,000.00 | $1,615.49 |
| $30 | $2,400.00 | $1,919.89 |
Add overtime in the Paycheck Calculator Michigan and it works out the 2026 overtime deduction for you.
Who the Paycheck Calculator Michigan is for
- Hourly workers with overtime, in manufacturing, health care, logistics and the auto plants, who want to know what the 2026 overtime deduction is worth federally and in Michigan.
- Servers, bartenders and stylists with tips, for the same reason.
- Anyone in or around Detroit, Grand Rapids, Lansing or Flint, where city tax is a real line on the stub, and anyone who commutes between two taxing cities.
- People comparing a job offer in a taxing city against one in a suburb that isn’t.
If you’re paid in Michigan but live in Indiana, Ohio or another state, your situation depends on reciprocity agreements the Paycheck Calculator Michigan doesn’t cover; check with your employer.
Common mistakes
- Using last year’s exemption. It’s $5,900 for 2026. $5,800 was 2025.
- Assuming your suburb has a city tax. Dearborn, Troy, Ann Arbor, Warren and Livonia don’t. Only the 24 cities above do.
- Expecting a bigger paycheck from the Michigan overtime deduction. It comes back at filing. Only the federal deduction can change your paycheck, and only if you put it on your W-4.
- Counting all overtime pay. Only the extra half of time-and-a-half counts toward the deduction, not the whole overtime wage.
- Paying two cities in full. The work city’s nonresident tax counts against your home city’s.
How the Paycheck Calculator Michigan works
Federal withholding uses the 2026 Publication 15-T percentage method and the 2026 Form W-4, the same code as our Texas, Indiana and Maryland calculators. Social Security is 6.2% up to $184,500, and Medicare is 1.45% plus 0.9% over $200,000.
Michigan state tax follows Form 446: 4.25% of pay after $5,900 per exemption, on the same wage base as federal. City tax follows each city’s own rules: rate times gross pay less that city’s exemption, with the two-city credit from Detroit’s withholding guide. The tips and overtime figures come from the 2026 W-4 worksheet and 2025 PA 24.
In the Paycheck Calculator Michigan, Copy estimate gives you the whole breakdown as text, and you can download it or save it as a PDF from the buttons under the tool.
What this can’t tell you
- It’s an estimate of withholding, not your final tax. Your 2026 Michigan return can include credits and deductions withholding doesn’t see, such as the retirement and Social Security subtractions.
- Whether your tips or overtime qualify is decided on your federal return. The calculator uses the W-4’s income test, which is all or nothing; the deduction on the return phases out more gradually.
- City exemption amounts come from the cities. Where a city’s own documents disagreed with a published table, we used the city’s own. Check your city’s withholding form if your exemption looks wrong, and change the number under “More Michigan options”.
- Your payroll system may round differently by a few cents.
Other states: the Indiana paycheck calculator for anyone crossing the border, the Paycheck Calculator Texas, and the GA paycheck calculator. Planning a car on that paycheck? The monthly car payment calculator includes the 2025 to 2028 car loan interest deduction.
Frequently asked questions
How much is taken out of a paycheck in Michigan?
Federal income tax, Social Security at 6.2%, Medicare at 1.45%, Michigan state tax at 4.25% after your exemptions, and city tax if you live or work in one of 24 cities. For a single filer earning $60,000 a year, paid every two weeks and living in Detroit, that is $193.08 federal, $143.08 Social Security, $33.46 Medicare, $88.43 Michigan and $54.83 Detroit, leaving $1,794.81.
What is the Michigan personal exemption for 2026?
$5,900 for each exemption on your MI-W4: you, your spouse if you claim them, and each dependent. Your employer takes 4.25% of your pay after subtracting those exemptions, spread across your paychecks. On $60,000 with one exemption that is $2,299.25 for the year.
Is overtime taxed in Michigan in 2026?
Michigan lets you deduct the same qualified overtime and tips you deduct on your federal return, for 2026, 2027 and 2028 (2025 PA 24). Employers still withhold 4.25% on that pay, so you get the Michigan saving back when you file. At $22 an hour with 6 overtime hours a week, the overtime premium is $3,432 a year, worth about $146 of Michigan tax.
Which Michigan cities have an income tax?
Twenty-four: Albion, Battle Creek, Benton Harbor, Big Rapids, Detroit, East Lansing, Flint, Grand Rapids, Grayling, Hamtramck, Highland Park, Hudson, Ionia, Jackson, Lansing, Lapeer, Muskegon, Muskegon Heights, Pontiac, Port Huron, Portland, Saginaw, Springfield and Walker. Detroit charges 2.4% to residents and 1.2% to nonresidents who work there; Highland Park 2%; Grand Rapids and Saginaw 1.5%; the rest 1%.
What if I live in one Michigan city and work in another?
The city you work in takes its nonresident rate, and your home city takes its resident rate less that. A Detroit resident earning $60,000 who works in Grand Rapids pays $445.50 to Grand Rapids and $980.10 to Detroit, the same $1,425.60 in total as working in Detroit.
Does a 401(k) lower my Michigan and city tax?
It lowers Michigan state tax, because Michigan follows the federal treatment of 401(k) contributions. It does not lower city tax: Michigan cities withhold on gross earnings. Pre-tax health insurance lowers federal and Michigan tax and Social Security and Medicare.
Last updated: October 17, 2026