Michigan Taxes, Wages and Living Costs (2026)

Michigan has a flat income tax rate of 4.25%, the 14th lowest combined sales tax (6.00%) and a $13.73 minimum wage as of 2026.

State income tax
4.25%
Flat rate
Combined sales tax
6.00%
6.00% state + 0.00% avg. local
Minimum wage
$13.73
State rate, July 1, 2026
Property tax
1.19%
Effective rate on home value
Electricity
23.05¢/kWh
Residential average, July 2026

What It Adds Up To

$10,496 a year: that is roughly what a Michigan homeowner earning $75,000 pays in state income tax ($2,937), sales tax on $25,000 of purchases ($1,500), property tax on a $300,000 house ($3,570) and electricity at 900 kWh a month ($2,489).

Michigan Income Tax in 2026

Michigan uses a single flat rate. Single filers' standard deduction: none; personal exemption: $5,900. On $50,000 of wages, a single filer's Michigan tax works out to about $1,874 (3.7% of wages); on $100,000 it is about $3,999 (4.0%). Source: Tax Foundation, January 1, 2026.

RateSingle filersMarried filing jointly
4.25%over $0over $0

Take-Home Pay in Michigan

Estimated 2026 take-home pay for a single filer with no pre-tax deductions, using the federal brackets and $16,100 standard deduction, Social Security and Medicare, and Michigan's brackets above. Open the paycheck calculator set to Michigan to add a 401(k), change pay frequency or filing status.

SalaryFederal taxFICAState taxTake-home (year)Per biweekly check
$50,000$3,820$3,825$1,874$40,481$1,557
$75,000$7,670$5,738$2,937$58,656$2,256
$100,000$13,170$7,650$3,999$75,181$2,892

Sales Tax

The state rate is 6.00% and local governments add 0.00% on average, for a combined 6.00%, 14th lowest of the 50 states and D.C. (median 7.00%). A $1,000 purchase carries about $60 in sales tax at the average combined rate. Source: Tax Foundation, July 1, 2026.

Minimum Wage

The Michigan minimum wage is $13.73 an hour, 22nd highest in the country, or $28,558 a year for full-time work, $13,478 more than the federal $7.25. Source: U.S. Department of Labor, July 1, 2026.

Property Tax

Homeowners in Michigan paid property taxes equal to 1.19% of home value on average, the 14th highest effective rate (median state 0.79%). On a $300,000 home that is about $3,570 a year, or $298 a month in escrow. Source: Tax Foundation (Census ACS data), 2024 data.

Electricity Prices

Residential electricity averaged 23.05¢ per kWh in July 2026, the 13th highest of the 50 states and D.C. (median 16.09¢). A household using 900 kWh a month would pay about $207 before fixed charges. Source: U.S. EIA, July 2026 data.

Michigan Compared with Its Neighbors

Among the 3 states it borders, Michigan has the highest minimum wage of its neighbors ($13.73) and the highest electricity price of its neighbors (23.05¢).

StateTop income taxSales taxMin. wageProperty taxElectricity
Michigan4.25%6.00%$13.731.19%23.05¢
Indiana2.95%7.00%$7.250.76%16.73¢
Ohio2.75%7.29%$11.001.36%19.45¢
Wisconsin7.65%5.72%$7.251.32%19.06¢

Michigan figures use statewide averages; tax estimates include the standard deduction and personal exemption but skip other credits, dependents and local income taxes; check Michigan revenue and labor department sites before filing or hiring.

💰 Finance Calculators
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Michigan Income Tax Calculator
Federal 2026 tax plus 4.25% top Michigan rate
Michigan specific
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State Tax Calculator
Michigan brackets, top rate 4.25%
2026 rates
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Mortgage Calculator
Payment plus Michigan property tax at 1.19%
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Home Affordability Calculator
Budget with 1.19% property tax
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Property Tax Calculator
Michigan effective rate: 1.19%
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Salary Converter
Hourly to annual; Michigan minimum $13.73
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