Michigan pay stubs: state, city taxes and withholding
Michigan paycheck withholding: the flat 4.25% state income tax for 2026, city income taxes like Detroit's, and federal payroll deductions.
Last reviewed
Rates on this page are for the 2026 tax year and are reviewed every January.
State income tax
Michigan has a flat income tax of 4.25% for 2026. Withholding is based on the employee's Form MI-W4. The number of exemptions they claim reduces the wages the rate applies to, and the Treasury's 2026 withholding guide sets the value of each exemption. There are no brackets and no filing-status tables, which makes Michigan one of the easier states to check by hand.
City income taxes
Here Michigan gets more complicated. A number of Michigan cities levy their own income tax, including Detroit, Grand Rapids and Lansing. Common patterns:
- Residents usually pay a higher city rate than nonresidents who only work in the city.
- An employer with a location in a taxing city is generally expected to withhold for employees who work there.
- Each city has its own withholding form and rules, so check with the city's income tax office.
Most of Michigan's cities, townships and villages have no income tax at all, so many employees will have no local line.
Other state payroll deductions
Michigan has no state disability insurance and no state paid family leave payroll contribution. State unemployment insurance is funded by employers, not withheld from wages.
Federal withholding still applies
Federal income tax comes out based on the employee's Form W-4. Social Security takes 6.2% of wages up to the annual Social Security wage base. Medicare takes 1.45% of all wages, plus an extra 0.9% on wages above $200,000 in a calendar year.
Creating a Michigan pay stub with PayStubNest
Open the stub creator, enter a salary or hourly pay with hours, and choose Michigan. The calculator applies federal withholding and the 4.25% state tax and builds year-to-date totals as you go. If the employee owes city tax, add it as a separate deduction labeled with the city name. Exact figures depend on pay, pay frequency, W-4 choices, deductions and year-to-date totals, and PayStubNest calculates them for you automatically. Preview free and pay only for the downloads you keep.
Record-keeping tip
For each employee, record both their home city and their work city. Michigan city taxes depend on both, and having them on file makes year-end forms and any questions from a city tax office much simpler. The Michigan Department of Treasury has the state guide.