What is Michigan's income tax rate?

Michigan has a single flat rate of 4.25% on taxable income for all filers and all income levels. Unlike graduated-bracket states, the marginal and average rates on taxable income are identical.

Does Michigan have a standard deduction?

No. Instead of a standard deduction, Michigan uses a personal exemption — about 5,600 dollars per person in 2024 — for each taxpayer, spouse, and dependent. You subtract the total exemption amount from your federal AGI to get Michigan taxable income.

How many exemptions can I claim?

You claim one personal exemption for yourself, one for a spouse if filing jointly, and one for each dependent. Special additional exemptions exist for those who are blind, disabled, or qualifying veterans, which can lower your tax further.

Does this include city income tax?

No. Several Michigan cities, including Detroit, Grand Rapids, and Lansing, levy a separate local income tax of roughly 1% to 2.4%. This calculator covers only the 4.25% state tax, not any city tax you may also owe.

How accurate is this calculator?

It is accurate for the flat state tax given your AGI and exemptions. Michigan credits such as the Homestead Property Tax Credit and Earned Income Tax Credit can reduce your actual liability and are not modelled here.

Michigan Income Tax Calculator

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Michigan levies a flat 4.25% income tax on every filer, regardless of income. There are no brackets to step through: you subtract your personal exemptions from your adjusted gross income, then multiply what remains by 4.25%. This calculator does exactly that, using Michigan’s per-person exemption rather than a standard deduction.

How it works

Michigan’s flat tax keeps the math simple:

Start with adjusted gross income. Enter your federal AGI, which is the starting point for the Michigan return (form MI-1040).
Subtract personal exemptions. Michigan allows roughly $5,600 per person in 2024 — one exemption for you, one for a spouse on a joint return, and one per dependent.
Apply the flat rate. Multiply the resulting taxable income by 4.25%.

The formula is: tax = max(0, AGI − exemptions × 5600) × 0.0425. Because the rate is flat, everyone pays the same percentage on taxable income; your effective rate on gross income is lower because of the exemptions.

Tips and example

A married couple filing jointly with two children claims 4 exemptions, totalling $22,400. On $90,000 of AGI, taxable income is $67,600, so Michigan tax is $67,600 × 4.25% = $2,873. That is an effective rate of about 3.2% on gross income.

This models only the state income tax. Federal income tax, FICA, and any city income tax (Detroit, Grand Rapids, Lansing, and others) are separate. Michigan also offers refundable credits — the Homestead Property Tax Credit and the state Earned Income Tax Credit — that can reduce your actual liability below the figure shown here.