2026 tax year · Michigan
Local income tax in Michigan
Detroit is the most expensive of the Michigan levies we hold, $1,920 on $80,000, on top of federal and state tax.
A city income tax, charged at one rate if you live there and half that if you only work there.
The rate halves if you only work in the city rather than live there, and four cities are allowed to charge far more than the rest.
What the Michigan levies cost on $80,000
| Jurisdiction | How it is worked out | On $80,000 |
|---|---|---|
| Detroit | 2.4% if you live there, 1.2% if you only work there | $1,920 |
| Highland Park | 2% if you live there, 1% if you only work there | $1,600 |
| Grand Rapids | 1.5% if you live there, 0.75% if you only work there | $1,200 |
| Saginaw | 1.5% if you live there, 0.75% if you only work there | $1,200 |
| Albion | 1% if you live there, 0.5% if you only work there | $800 |
| Battle Creek | 1% if you live there, 0.5% if you only work there | $800 |
| Benton Harbor | 1% if you live there, 0.5% if you only work there | $800 |
| Big Rapids | 1% if you live there, 0.5% if you only work there | $800 |
| East Lansing | 1% if you live there, 0.5% if you only work there | $800 |
| Flint | 1% if you live there, 0.5% if you only work there | $800 |
| Grayling | 1% if you live there, 0.5% if you only work there | $800 |
| Hamtramck | 1% if you live there, 0.5% if you only work there | $800 |
| Hudson | 1% if you live there, 0.5% if you only work there | $800 |
| Ionia | 1% if you live there, 0.5% if you only work there | $800 |
| Jackson | 1% if you live there, 0.5% if you only work there | $800 |
| Lansing | 1% if you live there, 0.5% if you only work there | $800 |
| Lapeer | 1% if you live there, 0.5% if you only work there | $800 |
| Muskegon | 1% if you live there, 0.5% if you only work there | $800 |
| Muskegon Heights | 1% if you live there, 0.5% if you only work there | $800 |
| Pontiac | 1% if you live there, 0.5% if you only work there | $800 |
| Port Huron | 1% if you live there, 0.5% if you only work there | $800 |
| Portland | 1% if you live there, 0.5% if you only work there | $800 |
| Springfield | 1% if you live there, 0.5% if you only work there | $800 |
| Walker | 1% if you live there, 0.5% if you only work there | $800 |
Does it reach self-employment profit?
Yes. In Michigan the local tax reaches net profit from self-employment, not only wages. No employer withholds it, so it is on you to pay it, usually alongside your quarterly estimates, and it is routinely missed for exactly that reason.
What catches people out in Michigan
Twenty-four Michigan cities charge their own income tax. The standard is 1% if you live there and 0.5% if you only work there, the rate for non-residents is set at half the resident rate by state law, and never more.
Four cities are allowed to charge more, and they do: Detroit at 2.4% and 1.2%, Highland Park at 2% and 1%, Grand Rapids and Saginaw at 1.5% and 0.75%. None of the other twenty qualifies to go above 1%.
Profit from working for yourself is taxed, but which profit depends on where you live. If you live in the city, it taxes your business profit wherever you earned it. If you only work there, it taxes just the share you earned inside the city, worked out using the city’s own formula for splitting business income across places.
Pensions, annuities and Social Security are not taxed by any of these cities.
East Lansing’s tax expires after 2030. It was authorized for twelve years from January 2019 and is the only one of the twenty-four with an end date, so do not assume it is permanent.
These figures were checked in July 2026 against Michigan city and state revenue sources, and we rate our confidence in them as high. Local rates change by council vote and local referendum far more often than state rates do, so confirm yours with the city or county itself before relying on a number here.
What these words mean
- Nonresident
- Someone who earns money in a place without living there. Most states and cities tax non-residents only on what they earned inside the boundary, and residents on everything.
Related
- Local income tax in every state
- 1099 taxes in Michigan
- Paycheck in Michigan
- Quarterly payments in Michigan
- S-corp election in Michigan
General information about how these taxes work, not tax advice. Local rates change by ordinance and referendum, confirm with your jurisdiction or a tax professional before acting on anything here.