2026 Tax Tables

Michigan Payroll Withholding Calculator (2026)

Michigan levies a flat 4.25% income tax on wages and salaries. Employers collect the number of personal exemptions from employees via Form MI-W4. For 2026, each personal exemption claimed on the MI-W4 reduces the employee's annualized income by $5,900 before the 4.25% rate is applied — up from $5,800 in 2025. The exemption value is indexed annually to inflation.

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State Tax Rate

4.25% flat

State W-4 Form

MI-W4

Tax Year

2026

Key Facts

  • Flat 4.25% income tax rate on all wages
  • MI-W4 personal exemption: $5,900 per exemption claimed (increased from $5,800 in 2025)
  • Exemption value is inflation-indexed and increases annually
  • No Michigan local income tax on wages

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Michigan Withholding — Frequently Asked Questions

What is the Michigan income tax rate for 2026?

Michigan has a flat 4.25% income tax rate on all wages. This rate has been stable at 4.25% after a temporary reduction.

What is the MI-W4 personal exemption value for 2026?

Each personal exemption claimed on the Michigan MI-W4 form reduces the employee's annualized wages by $5,900 before the 4.25% rate is applied. The exemption amount is inflation-indexed and increased from $5,800 in 2025.

Does Michigan use the federal W-4?

No. Michigan requires its own MI-W4 (Employee's Michigan Withholding Exemption Certificate). The federal W-4 and MI-W4 are separate forms — employees should complete both.

Does Michigan have local income taxes?

Michigan does not have a statewide local income tax on wages. Some Michigan cities (like Detroit) have their own city income tax, but this is handled separately from state withholding.