Your Pay Details
Your Take-Home Pay
| Gross Pay | $0 |
| Federal Income Tax | –$0 |
| Social Security (6.2%) | –$0 |
| Medicare (1.45%) | –$0 |
| Michigan State Tax (4.25%) | –$0 |
| Detroit City Tax (2.4%) | –$0 |
| Take-Home Pay | $0 |
How Michigan City Income Taxes Work
Michigan allows cities to levy a local income tax under the state's Uniform City Income Tax Ordinance (UCITA). About 24 cities have adopted one. The rules are consistent across all cities: residents pay the full rate, and non-residents who work in the city pay exactly half. Michigan state income tax (4.25% flat) is owed on top, as is federal income tax.
The city income tax is calculated on gross wages (similar to how Social Security is applied). Detroit has the highest rate at 2.4% for residents — meaning a Detroit resident earning $75,000 pays roughly $1,800/year in city tax alone. Highland Park (2%) and Grand Rapids (1.5%) are also on the higher end. Most other cities are at a flat 1%.
Federal Income Tax
Graduated brackets from 10% to 37%, applied after the 2025 standard deduction ($15,000 single / $30,000 MFJ).
Michigan State Tax
Flat 4.25% on income after the personal exemption ($5,600 single / $11,200 MFJ). One of the simpler state tax systems in the US.
City Income Tax
Set by each city under state law. Residents pay the full rate; non-residents who earn wages in the city pay exactly half. The maximum rate for most cities is capped at 1%.
Social Security & Medicare
6.2% SS on wages up to $176,100, plus 1.45% Medicare on all wages. High earners over $200K pay an extra 0.9% Medicare surtax.
Michigan City Income Tax Rates — All 24 Cities
All cities below operate under the Uniform City Income Tax Ordinance. Non-residents always pay exactly half the resident rate. Cities are sorted alphabetically.
| City | Resident Rate | Non-Resident Rate | Notes |
|---|---|---|---|
| Albion | 1.0% | 0.5% | Standard UCITA rate |
| Battle Creek | 1.0% | 0.5% | Standard UCITA rate |
| Benton Harbor | 1.0% | 0.5% | Standard UCITA rate |
| Big Rapids | 1.0% | 0.5% | Standard UCITA rate |
| Detroit | 2.4% | 1.2% | Highest rate in Michigan; special authorization above the 1% standard cap |
| Flint | 1.0% | 0.5% | Standard UCITA rate |
| Grand Rapids | 1.5% | 0.75% | Second-largest city in Michigan; rate above standard cap |
| Hamtramck | 1.0% | 0.5% | Enclave within Detroit metro |
| Highland Park | 2.0% | 1.0% | Special authorization; enclave within Detroit |
| Hudson | 1.0% | 0.5% | Standard UCITA rate |
| Ionia | 1.0% | 0.5% | Standard UCITA rate |
| Jackson | 1.0% | 0.5% | Standard UCITA rate |
| Lapeer | 1.0% | 0.5% | Standard UCITA rate |
| Lansing | 1.0% | 0.5% | State capital; standard UCITA rate |
| Lowell | 1.0% | 0.5% | Standard UCITA rate |
| Mount Pleasant | 1.0% | 0.5% | Home of Central Michigan University |
| Muskegon | 1.0% | 0.5% | Standard UCITA rate |
| Muskegon Heights | 1.0% | 0.5% | Standard UCITA rate |
| Pontiac | 1.0% | 0.5% | Standard UCITA rate |
| Port Huron | 1.0% | 0.5% | Standard UCITA rate |
| Portland | 1.0% | 0.5% | Standard UCITA rate |
| Saginaw | 1.5% | 0.75% | Rate above standard cap |
| Springfield | 1.0% | 0.5% | Standard UCITA rate |
| Walker | 1.0% | 0.5% | Grand Rapids suburb |
Frequently Asked Questions
Do I owe Michigan city income tax if I live outside the city but work there?
Yes — if you commute into one of Michigan's 24 cities with a local income tax, you owe the non-resident rate on wages earned in that city. The non-resident rate is always exactly half the resident rate. Your employer should withhold it automatically, but if they don't, you're still responsible for paying it.
What if I live in Detroit but work in Grand Rapids?
You'd owe Detroit's resident rate (2.4%) on your total income because you live there. You would NOT additionally owe Grand Rapids' non-resident rate — Michigan cities generally don't double-tax the same wages. You'd file a return in both cities but receive a credit to prevent double taxation.
Are Michigan city income taxes withheld from my paycheck automatically?
If your employer is based in or operates in a city with a local income tax, they're required to withhold it. If you're a remote worker or your employer is based outside the city, withholding may not happen automatically — in that case you may need to make estimated payments or file when you complete your city return.
Does Michigan state income tax stack on top of city tax?
Yes. You pay Michigan's flat 4.25% state income tax AND your city's local income tax — they're separate obligations. On a $65,000 salary in Detroit, for example, you'd pay roughly $2,500 in state tax plus $1,560 in city tax (resident rate), on top of federal taxes.
Can a 401(k) contribution reduce my Michigan city tax?
Pre-tax 401(k) contributions reduce your federal and Michigan state taxable income. Michigan city income taxes generally follow the same income base, so a $5,000 contribution would reduce your city tax by approximately $50–$120 depending on your city's rate.
How accurate is this calculator?
This calculator uses 2025 federal brackets, Michigan's 4.25% flat state rate, and each city's published resident/non-resident rates. Results are estimates — actual withholding may vary based on W-4 elections, city-specific exemptions, and employer practices. For precise figures, consult a Michigan tax professional.