Michigan Tax Calculator & Rates 2026
Michigan uses a flat income tax rate of 4.25% on all taxable income. For 2026, the personal exemption is $5,900 per person (up from $5,600 in 2025). Michigan does not allow local sales taxes, so the 6.00% state rate is the total rate statewide. A key change for 2026: the birth-year phase-in for retirement income deductions is now complete, meaning all retirees qualify for the full pension deduction. Use the calculators below to estimate your Michigan tax liability.
Michigan Income Tax 2026
Michigan levies a flat 4.25% income tax on all taxable income. There are no graduated brackets; all filers pay the same rate regardless of income level. Michigan provides a personal exemption of $5,900 per person ($11,800 for joint filers), which reduces taxable income before the flat rate is applied. Michigan does not use a standard deduction.
Michigan Sales Tax
Michigan's state sales tax rate is 6.00%. Unlike most states, Michigan does not allow local sales taxes, making the state rate the total rate statewide. Food for home consumption is exempt from Michigan sales tax. Prepared food, candy, and soft drinks are taxable.
Michigan Retirement Tax
Michigan does not tax Social Security benefits. The birth-year phase-in for retirement income deductions is complete for TY2026. All retirees are now eligible for the full public pension deduction regardless of birth year (per Treasury RAB 2026-1). Private pension and retirement income deductions are also available.
Michigan Local Income Taxes
Some Michigan cities impose local income taxes. Detroit levies 2.4% on residents and 1.2% on non-residents. Approximately 24 cities levy local income taxes, typically 1% on residents and 0.5% on non-residents. These are collected by the individual cities and are in addition to the state rate. Local income taxes are not modeled in our paycheck calculator.