Michigan · rates effective Jan 1 – Dec 31, 2026 · verified 2026-08-05
Detroit Paycheck Calculator 2026
4.25% flat state tax rate in Michigan, plus city income tax on top in Detroit.
Detroit taxes residents at 2.4% and non-residents at 1.2% - work in the city and live outside it and you pay exactly half. This calculator runs Michigan's 4.25% flat tax and the city tax together, from the rates Michigan Treasury publishes for 2026.
Official 2026 tables, never copiedSources stamped & dated99 golden tests before publish
CEBy the Calceva data desk · Verified against official sources · Updated 2026-08-05 · 3 min read
Detroit is one of the few American cities where the commuter question has a clean answer: residents pay 2.4%, non-residents 1.2%. Not a different set of brackets, not a different base - the same calculation at half the rate. On a $60,000 salary the city takes about $1,426 from a resident and about $713 from someone who drives in, a difference of roughly $713 a year that depends on nothing but which side of the city line you sleep on.
Two exemptions, and they are not the same one
Michigan gives you $5,900 per exemption against the state's 4.25% flat tax. Detroit gives you $600 per exemption against the city tax. They are separate allowances against separate taxes, and a calculator that applies only the state one will overstate what the city takes. This page applies both, which is why the city line here may not match a generic Michigan calculator.
Detroit is not alone, but it is the biggest
Twenty-four Michigan cities levy an income tax, most of them at 1.0% for residents and 0.5% for non-residents - Grand Rapids at 1.5%, Highland Park at 2.0%. Detroit's 2.4% is the highest in the state. If your employer withholds a city tax you did not expect, the city where you work is usually the reason: Michigan cities tax non-residents on the income earned inside their limits, whatever your home address says.
What is the Detroit city income tax rate for 2026?
2.4% for residents of Detroit and 1.2% for non-residents who work in the city. Michigan Treasury publishes both rates in its 2026 City of Detroit withholding guide.
I work in Detroit but live in a suburb. Do I pay?
Yes, at the non-resident rate of 1.2% - half what a resident pays. Michigan cities tax non-residents on the income earned within the city, regardless of where you live.
Is the Detroit exemption the same as the Michigan one?
No. Michigan allows $5,900 per exemption against the state's 4.25% tax; Detroit allows $600 per exemption against the city tax. They are separate, and both apply.
How much is Detroit city tax on a $60,000 salary?
About $1,426 a year for a resident and about $713 for a non-resident, after the $600 city exemption. The state tax of roughly $2,299 comes on top of that either way.
Do other Michigan cities tax income too?
Twenty-four of them do. Most charge 1.0% for residents and 0.5% for non-residents; Grand Rapids charges 1.5% and Highland Park 2.0%. Detroit's 2.4% is the highest in Michigan.
We never copy another calculator. Each rate is read from the official document, dated, and re-checked when agencies publish changes. This page's paper trail:
Verified 2026-08-05
Michigan Treasury notice 2026-04-15 — 2026 flat rate 4.25% (Treasury annual trigger calculation: no reduction for 2026; the 2023 cut to 4.05% was one-year-only)
Verified 2026-08-05
2026 Withholding Guide (Form 446, rev. 02-26) — 2026 personal/dependency exemption for withholding: $5,900 per exemption; no standard deduction. The cover of the guide prints "Withholding Rate: 4.25% Personal Exemption Amount: $5,900".
Verified 2026-08-05
Michigan Treasury city income tax list — 24 Michigan cities levy a city income tax; Detroit 2.4% residents / 1.2% nonresidents (unchanged since 2013, City Income Tax Act 284 of 1964)
Federal income tax, Social Security and Medicare on this page follow IRS Rev. Proc. 2025-32, Publication 15 and Publication 15-T, verified 2026-08-07. Our federal engine reproduces 2,175 of 2,175 Publication 15-T cells on every build. The six federal sources, itemised.
Matches the agency
Reproduces the agency’s own worked example. The local line is the half that usually has no official example to check against. Here it does: our Detroit withholding reproduces the worked example of Form 5469, 2026 City of Detroit Income Tax Withholding Guide exactly as the agency prints it, re-checked on every build. The Michigan state line on this page is computed from the published rates rather than from an agency worked example, and we say so rather than let one badge cover both. Check it in the official PDF.
Cite this pageCalceva, “Detroit Paycheck Calculator (2026),” verified 2026-08-05, https://calceva.com/detroit-paycheck-calculator/