Michigan Tax Guide for Employers (2026) 

Michigan uses a flat state income tax rate and also has city-level income taxes in certain municipalities (such as Detroit, Grand Rapids, and others). The state’s withholding is straightforward, based on a flat rate minus allowance deductions. 

Michigan imposes a flat state income tax rate of 4.25% for 2026. Withholding is calculated by subtracting total allowances (each worth $5,900) from gross wages, then applying the flat rate. There is no standard deduction and no filing status. Michigan also has city income taxes in approximately 24 cities, each with their own rates. 

Michigan supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 4.25%. 

Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 2.7%. 

Several Michigan cities impose local income taxes, including Detroit (2.4% residents/1.2% non-residents), Grand Rapids, Lansing, and others.

Follow these steps to begin withholding Michigan payroll taxes for your employees: 

1. Obtain your Federal EIN at irs.gov
2. Register with the Michigan Department of Treasury at michigan.gov/treasury
3. Register for SUTA with the Michigan UIA at michigan.gov/uia
4. If operating in a city with local tax, register with the city
5. Submit a Netchex tax team request to enable Michigan SIT, local taxes, and SUTA
6. Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
7. Configure any additional tax settings in the employee profile

Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Michigan payroll taxes on your behalf. 

The following are general filing and deposit deadlines for Michigan payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at Michigan Department of Treasury. 

Note: Deadlines are subject to change. Always confirm current requirements directly with Michigan Department of Treasury at https://www.michigan.gov/taxes/business-taxes/withholding. 

The following official resources will help you stay current on Michigan payroll tax requirements: 

• Michigan Department of Treasury
• Michigan Treasury — Withholding
• Michigan City Income Tax Info

Does Michigan have local income taxes? 

Yes. Michigan cities including Detroit, Grand Rapids, Lansing, and others impose local income taxes. Detroit residents pay 2.4%; non-residents pay 1.2%. 

What form do Michigan employees complete? 

Employees complete Michigan Form MI-W4, the Employee’s Michigan Withholding Exemption Certificate. 

What is Michigan’s flat income tax rate? 

Michigan’s flat income tax rate is 4.25%. 

What is Michigan’s SUTA wage base? 

Michigan’s SUTA wage base is $9,500 per employee per year. Verify at michigan.gov/uia. 

What is Michigan’s supplemental withholding rate? 

Michigan uses a flat 4.25% supplemental withholding rate.