How it works
The calculator starts with your gross pay for one pay period, subtracts the pre-tax deductions you entered, and then works out each tax separately. Federal income tax follows the percentage method in IRS Publication 15-T (2026), Federal Income Tax Withholding Methods, using your W-4 entries. Social Security is 6.2% of wages up to $184,500 for the year (SSA; IRS Publication 15 (2026)). Medicare is 1.45% of all wages, plus Additional Medicare Tax of 0.9% on wages over $200,000 (IRS Publication 15 (2026)).
Michigan income tax follows the withholding guide of the Michigan Department of Treasury (2026): annual wages are reduced by $5,900 for each MI-W4 exemption, and the rest is taxed at the flat rate of 4.25%. City income tax applies only in Michigan cities that have adopted one under the City Income Tax Act. Each city sets a resident rate and a lower non-resident rate; Detroit's are 2.4% and 1.2% (City of Detroit, 2026). Michigan has no state disability or family leave deduction from employee pay.
Not included: city exemption amounts that differ from the state exemption, credits for tax paid to another city, garnishments, union dues, after-tax Roth contributions, tips, bonuses taxed as supplemental wages, and year-end credits or refunds. Your employer's payroll may round differently.
Worked example
Take a $60,000 salary paid biweekly, filing single on the W-4 with one MI-W4 exemption, living and working in Detroit with no other deductions. Gross pay is $2,307.69 per paycheck. Federal income tax withholding comes to $193.08, Social Security to $143.08 and Medicare to $33.46. Michigan income tax withholding is $88.43, and Detroit resident city income tax is $54.83. Take-home pay is $1,794.81 per paycheck, or $46,665.06 over the year's 26 paychecks.
Frequently asked questions
Is Michigan income tax a flat tax?
Yes. Michigan applies one rate, 4.25% for 2026, to wages after the personal exemption, at every income level (Michigan Department of Treasury (2026)).
How much is the Detroit city income tax?
For 2026 Detroit taxes residents at 2.4% and non-residents who work in the city at 1.2% (City of Detroit, 2026).
Which Michigan cities have an income tax?
Only cities that have adopted the City Income Tax Act levy one; Detroit, Grand Rapids, Lansing, Flint and Saginaw are among them. The calculator includes Detroit so far, with its resident and non-resident rates; the other cities are being added.
What is the MI-W4?
Form MI-W4 is Michigan's employee withholding exemption certificate. It records the number of Michigan exemptions and any extra withholding, separately from the federal W-4.
Do I pay Detroit city tax if I only work in Detroit?
Yes. Non-residents pay Detroit income tax on wages earned in the city, at the non-resident rate of 1.2% (City of Detroit, 2026).