Michigan Salary After Tax Calculator
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Wage Comparison in Michigan
Compare Your Michigan Salary
Michigan offers competitive salaries with a flat state income tax rate of 4.25%. The state’s economy is driven by automotive manufacturing, technology, agriculture, and tourism, with major employment centers in Detroit, Grand Rapids, Ann Arbor, and Lansing.
- • Compare by Detroit, Grand Rapids, Ann Arbor, and Lansing areas
- • Consider Michigan’s flat 4.25% state income tax
- • Factor in automotive, tech, agriculture, and manufacturing sectors
Michigan Salary Factors
Detroit: Automotive, finance
Grand Rapids: Manufacturing, healthcare
Ann Arbor: Technology, education
Flat 4.25% state tax
Average Salary in Michigan
Michigan Industry Averages
Michigan’s economy is anchored by the automotive industry but has diversified into technology, healthcare, agriculture, and manufacturing. The state is home to major companies like Ford, General Motors, Stellantis, and a growing tech sector, offering competitive wages with moderate state taxes.
Automotive
$78,000
Average annual salary
Technology
$85,000
Average annual salary
Healthcare
$68,000
Average annual salary
Manufacturing
$62,000
Average annual salary
Michigan Salary Factors
- • Flat state income tax
- • Automotive industry hub
- • Growing tech sector
- • Strong manufacturing
- • Affordable cost of living
- • Great Lakes region
Michigan Minimum Wage
Michigan State Minimum Wage
Michigan’s minimum wage is $10.33 per hour as of 2025, which is above the federal minimum wage. The state has been gradually increasing the minimum wage with annual adjustments, and tipped workers have a lower minimum wage of $3.93 per hour.
Michigan Minimum Wage
$10.33
per hour (2025)
Annual Full-Time
$21,486
40 hours/week, 52 weeks
Michigan vs Neighboring States
Note: Michigan’s tipped minimum wage is $3.93/hour. Employers must make up the difference if tips don’t reach the regular minimum wage.
Michigan Tax Information
Understanding Michigan Taxes
Michigan has a flat state income tax rate of 4.25% on all income levels, making it relatively simple to calculate. The state also has a 6% sales tax and moderate property taxes. Michigan offers various deductions and credits, including a personal exemption and homestead property tax credit.
Federal Income Tax
Progressive rates from 10% to 37% based on income
Michigan State Income Tax
Flat rate of 4.25% on all income
Sales Tax
6% state sales tax
Social Security Tax
6.2% on income up to $168,600 (2025 limit)
Medicare Tax
1.45% on all income, plus 0.9% on income over $200,000
Michigan Tax Structure
Flat Income Tax
Michigan uses a flat tax rate of 4.25% on all income levels, making tax calculations straightforward and predictable.
Sales Tax
Michigan has a 6% state sales tax with no local sales taxes, keeping the tax structure simple.
Property Tax
Michigan has moderate property tax rates (average 1.36%) with a homestead exemption that can reduce taxes on primary residences.
Tax Credits & Deductions
Michigan offers personal exemptions ($5,000 for single, $10,000 for married), homestead property tax credit, and earned income tax credit.
Important Note
This calculator provides estimates. Actual taxes may vary based on deductions, credits, and other factors specific to your situation.