Michigan State Income Tax Withholding
Last Updated: January 2026
Overview
Michigan imposes a flat state income tax on all taxable income. The state has specific W-4 requirements and does not accept the federal Form W-4 for state withholding purposes.
2026 Tax Rates
| Taxable Income | Rate |
|---|---|
| All taxable income | 4.25% |
Deductions and Exemptions
Personal Exemption: $5,600 per person (taxpayer, spouse, and dependents)
Michigan uses personal exemptions rather than standard deductions in its withholding calculations.
Special Considerations
Required State Form
Michigan requires Form MI-W4 (Employee's Michigan Withholding Exemption Certificate). The federal Form W-4 cannot substitute for the MI-W4.
Key differences from federal W-4:
- Michigan-specific exemption calculations
- Different treatment of dependents
- State-specific additional withholding options
All new employees must complete Form MI-W4. Employers cannot use federal W-4 information to calculate Michigan withholding.
City Income Taxes
Several Michigan cities impose their own income taxes with separate withholding requirements:
| City | Resident Rate | Non-Resident Rate |
|---|---|---|
| Detroit | 2.40% | 1.20% |
| Grand Rapids | 1.50% | 0.75% |
| Lansing | 1.00% | 0.50% |
| Flint | 1.00% | 0.50% |
| Saginaw | 1.50% | 0.75% |
| Various others | Varies | Varies |
Employers must register with each city and withhold the appropriate city tax in addition to state income tax.
Withholding Calculation
Michigan withholding is calculated using:
- Gross wages for the pay period
- Minus personal exemptions ($5,600 × number claimed ÷ pay periods)
- Multiply result by 4.25%
Electronic Filing
All employers must file and pay electronically through Michigan Treasury Online (MTO).