Michigan Income Tax Calculator 2026
See your Michigan state tax, effective rate, and take-home pay in 60 seconds.
Estimate only. Uses 2026 federal figures, Michiganstate figures (see sources below), and a standard-deduction federal calculation. Filing status “Head of household” uses the single column for Michigan. Your actual tax depends on credits, additional income, and adjustments.
Worked example: A single filer earning $85,000 in Michigan
Start with $85,000 of wages. Michigan applies its flat 4.25% rate, which comes to about $3,613 in state income tax — an effective state rate near 4.3%. Federal income tax and FICA are calculated separately and shown in the calculator above.
Assumes a single filer taking the standard treatment. Figures are educational estimates.
How Michigan taxes income
Michigan is a flat-tax state: all taxable income is taxed at the same 4.25% rate, regardless of how much you earn. There are no brackets to climb.
Michigan generally starts from your federal income, applies state-specific adjustments, and then applies the flat 4.25% rate. Deductions, exemptions, and credits can change the final number — confirm the current details with the Michigan Department of Treasury.
2026 rate structure
Retirement income & Social Security
Michigan generally taxes retirement income such as 401(k), IRA, and pension distributions, though it may offer exclusions, deductions, or credits for certain pension or retirement income and for older taxpayers. Confirm the current exclusions with the Michigan Department of Treasury.
Local taxes & reciprocity
A number of Michigan cities (including Detroit, Grand Rapids, and Lansing) levy a local income tax in addition to the state's flat rate.
Reciprocity: Michigan has reciprocity agreements with Illinois, Indiana, Kentucky, Minnesota, Ohio, Wisconsin. If you live in Michigan and work in one of those states, you pay Michigan tax on those wages and file only in Michigan.
Notable deductions, credits & other taxes
Deductions & credits
- Michigan standard deduction and personal exemptions (verify current amounts with the Michigan Department of Treasury)
- Credit for income taxes paid to other states (for residents with out-of-state income)
- State versions of common credits — earned income, child/dependent care, and education credits — where offered
Capital gains: Michigan has no separate capital gains rate. Capital gains included in your federal AGI are taxed as ordinary income at the flat 4.25% rate.
Property tax: Property taxes in Michigan are assessed and collected locally, so effective rates vary widely by county and municipality. Check your county assessor or the Michigan Department of Treasury for local rates.
Michigan vs. neighboring states
Compared with its neighbors — Indiana, Ohio, Wisconsin — Michigan's flat 4.25% sit within the regional range. Effective rates depend heavily on income level, deductions, and local taxes.
Michigan state tax FAQs
What is the Michigan state income tax rate for 2026?
Michigan levies a flat 4.25% income tax that applies to all taxable income, with no graduated brackets.
Does Michigan tax retirement income or Social Security?
Social Security benefits are exempt from Michigan income tax. For other retirement income, Michigan generally taxes 401(k), IRA, and pension distributions, though exclusions may apply. Verify with the Michigan Department of Treasury.
How are capital gains taxed in Michigan?
Michigan has no separate capital gains rate. Capital gains included in your federal AGI are taxed as ordinary income at the flat 4.25% rate.
Is there a local or city income tax in Michigan?
A number of Michigan cities (including Detroit, Grand Rapids, and Lansing) levy a local income tax in addition to the state's flat rate.
Does Michigan have tax reciprocity with neighboring states?
Michigan has reciprocity agreements with Illinois, Indiana, Kentucky, Minnesota, Ohio, Wisconsin. If you live in Michigan and work in one of those states, you pay Michigan tax on those wages and file only in Michigan. For non-reciprocal states, you generally file a non-resident return there and claim a credit at home.
Sources & verification
Last verified June 12, 2026.