Michigan Paycheck Calculator

Yes, the calculator allows you to select “Detroit (Non-Resident)” which applies the lower 1.2% rate applicable to those who work in Detroit but live outside the city limits.

The calculator uses the statutory rate of 4.25%. If the state announces a surplus-triggered reduction (e.g., to 4.05%) for 2026, the calculator logic is updated to reflect the effective rate.

Enter the number of allowances you claimed on your MI-W4 form. The Michigan Paycheck Calculator multiplies this number by the 2026 exemption amount (approx. $5,400) to reduce your taxable income.

Yes. For a bonus, select “Annually” or “Daily” frequency to isolate the tax on that specific lump sum, keeping in mind that bonuses are often taxed at a flat supplemental rate federally (22%).

FICA taxes (Social Security and Medicare) are flat percentage taxes based on gross earned income. They are not affected by the number of dependents or allowances you claim on your MI-W4 or Federal W-4.

Yes, Grand Rapids is fully supported. You can choose between the Resident rate (1.5%) and the Non-Resident rate (0.75%).

You would select “Lansing” as your residence city (1.0% tax) in the calculator. East Lansing also has an income tax, but you generally pay the higher of the two or receive a credit. The calculator typically handles the primary work/live tax selection.

Yes. Traditional 401(k) contributions are exempt from Michigan Income Tax. The Michigan Paycheck Calculator subtracts these contributions from your gross pay before applying the 4.25% state rate.

If you enter health insurance premiums in the “Pre-Tax Deductions” field, the tool subtracts them from your gross pay before calculating Federal, State, and FICA taxes (assuming the plan is Section 125 compliant).

The calculator uses the projected 2026 federal tax brackets and state exemption amounts. While exact legislative changes can occur, it provides the most accurate estimate available based on current inflation indexing.

Small discrepancies occur due to rounding methods used by payroll software versus the precise percentage method used by the calculator. A difference of a few dollars is normal.

While designed for W-2 employees, freelancers can use it by entering “Gross Pay” as their net profit. However, they should double the FICA amount mentally (to 15.3%) to account for Self-Employment tax, which the standard W-2 mode calculates at the employee rate of 7.65%.

The Michigan Paycheck Calculator estimates withholding from each paycheck. It does not calculate end-of-year refunds or credits like the EITC, which are claimed when you file your annual return.

The calculator supports calculations for all major taxing cities, including Albion, Battle Creek, Benton Harbor, Detroit, East Lansing, Flint, Grand Rapids, Grayling, Hamtramck, Highland Park, Hudson, Ionia, Jackson, Lansing, Lapeer, Muskegon, Muskegon Heights, Pontiac, Port Huron, Portland, Saginaw, Springfield, Walker, and Wyandotte.

Multiply the “Net Pay” result from the calculator by the number of paychecks you have received so far this year.