Michigan flat income tax — 4.25% on all income
Michigan taxes personal income at a flat rate of 4.25% on all taxable income. This rate applies equally regardless of how much you earn. Michigan also allows a personal exemption of $5,400 (2026) per taxpayer and dependent, which reduces your taxable income before the 4.25% is applied.
A worker earning $75,000/year in Michigan pays approximately $2,964 in state income tax (after the $5,400 exemption). Take-home is approximately $55,800 per year after all federal and state deductions. Many Michigan cities including Detroit also levy local income taxes of 1–2.4%.