Michigan uses a flat state income tax of 4.3% in 2026 — the same rate applies to every dollar of taxable income, which makes your paycheck easy to predict. On a $75,000 salary, a single filer pays about $3,188 in state tax and takes home roughly $58,405 a year (about 77.9% of gross) after federal, state, and FICA withholding.

Michigan's 4.3% rate is below the 4.8% average among states that tax wage income. Because the rate is flat, a raise never pushes part of your income into a higher state bracket — every extra dollar is taxed at the same 4.3%, unlike the federal system where higher earnings hit progressively higher brackets.

Remember that FICA is separate from income tax and is not affected by your state. Every worker pays 6.2% for Social Security on the first $184,500 of wages (the 2026 wage base) plus 1.45% for Medicare on all wages. Pre-tax 401(k) and HSA contributions lower your federal and state income tax but do not reduce FICA — a detail that trips up a lot of first-time budgeters.

Michigan's flat state rate is straightforward, but around two dozen Michigan cities levy their own income tax — Detroit's is the largest, taxing residents at 2.4% and non-resident commuters at half that. Grand Rapids, Lansing, Flint, and others have similar two-tier resident/non-resident structures. If you live or work in one of these cities, the city tax is withheld alongside state tax and materially changes the take-home math.