Michigan Paystub Generator - 4.25% Flat Tax, City Taxes in 24 Cities, $13.73 Minimum Wage, Free Preview
Last updated: | ePaystubs Editorial Team
Michigan payroll has three layers that trip people up. There's the flat 4.25% state income tax (one tool still shows 4.05%, which was a disputed rate from 2023 that didn't stick). Then there are 24 Michigan cities that charge their own income tax, each with different rates for residents and nonresidents. Detroit's the biggest at 2.4% for residents and 1.2% for commuters. And then there's the minimum wage, which jumped to $13.73/hr on January 1, 2026 after a wild ride through the Michigan Supreme Court. One paystub site still shows $10.56, which is off by more than three dollars an hour.
Our Michigan paystub generator uses the correct 4.25% state rate confirmed by the Michigan Department of Treasury, applies the right city tax for your location, and calculates everything at the current $13.73 minimum wage per the Michigan LEO. Two minutes. No signup. Free preview.
Works for employees, contractors, and small business owners across Detroit, Grand Rapids, Lansing, Ann Arbor, Flint, Kalamazoo, and all of Michigan.
| State Income Tax | 4.25% flat (not 4.05% as one tool shows) |
| City Income Tax | 24 cities. Detroit 2.4% residents / 1.2% nonresidents. Most others 1% / 0.5%. |
| Personal Exemption | ~$5,600 per person (no standard deduction) |
| Minimum Wage | $13.73/hr (per MI LEO, Jan 1 2026). Tipped: $5.49. Going to $15.00 in Jan 2027. |
| Reciprocal Agreements | IL, IN, KY, MN, OH, WI (6 states) |
| Earned Sick Time | Up to 72 hrs/year (10+ employees) or 40 hrs/year (under 10) |
| Pay Stub Required? | Yes. Hours, gross, deductions, net required. |
| Withholding Form | MI-W4 |
| SDI / PFML | None |
"I work at the Ford Rouge Complex in Dearborn and live in Detroit. My stub has six deduction lines because of the 2.4% Detroit city tax on top of everything else. Another tool I tried was using 4.05% for the state rate, which made my numbers look wrong. This one had the right 4.25% and matched my actual paycheck."
"I manage a restaurant in Grand Rapids and I had to recalculate everyone's pay when minimum wage went to $13.73. One calculator I found online was still showing $10.56 for Michigan. This tool had the right number from the state and handled the Grand Rapids city tax at 1.5%."
Michigan's 4.25% Flat Rate for 2026 (And the 2023 Dispute That Left One Tool Showing 4.05%)
Michigan's flat income tax rate is 4.25% for 2026. That's confirmed by Paylocity (March 2026), Revonary (April 2026), PayStubsNow, and Rippling. But one tool updated just three weeks ago shows 4.05%. That number comes from a brief episode in 2023 when an automatic revenue trigger was supposed to lower the rate from 4.25% to 4.05%. The trigger's activation was disputed, the lower rate didn't hold, and the rate went back to 4.25%. It's been 4.25% ever since.
Michigan uses personal exemptions (~$5,600 per person) instead of a standard deduction, similar to Massachusetts. There's no big lump-sum deduction to shelter income before the flat rate kicks in. The 4.25% applies to your income after personal exemptions, which means more of your paycheck is taxed than it would be in a state with a typical standard deduction of $12,000-$16,000.
24 Michigan Cities Charge Their Own Income Tax. Here Are All the Rates.
Michigan has 24 cities that levy local income taxes on top of the 4.25% state rate. What makes Michigan's system different from most states is the dual-rate structure: each city charges one rate for residents and a lower rate for nonresidents who work there. If you live in Detroit, you pay 2.4% on all your income. If you commute into Detroit from the suburbs, you pay 1.2% only on the income you earn while working in Detroit. Your employer withholds the city tax and remits it directly to the city, separate from anything filed with the state.
| City | Resident Rate | Nonresident Rate | Combined with State (Resident) |
|---|---|---|---|
| Detroit | 2.4% | 1.2% | 6.65% |
| Highland Park | 2.0% | 1.0% | 6.25% |
| Grand Rapids | 1.5% | 0.75% | 5.75% |
| Saginaw | 1.5% | 0.75% | 5.75% |
| Albion | 1.0% | 0.5% | 5.25% |
| Battle Creek | 1.0% | 0.5% | 5.25% |
| Benton Harbor | 1.0% | 0.5% | 5.25% |
| Big Rapids | 1.0% | 0.5% | 5.25% |
| East Lansing | 1.0% | 0.5% | 5.25% |
| Flint | 1.0% | 0.5% | 5.25% |
| Grayling | 1.0% | 0.5% | 5.25% |
| Hamtramck | 1.0% | 0.5% | 5.25% |
| Hudson | 1.0% | 0.5% | 5.25% |
| Ionia | 1.0% | 0.5% | 5.25% |
| Jackson | 1.0% | 0.5% | 5.25% |
| Lansing | 1.0% | 0.5% | 5.25% |
| Lapeer | 1.0% | 0.5% | 5.25% |
| Muskegon | 1.0% | 0.5% | 5.25% |
| Muskegon Heights | 1.0% | 0.5% | 5.25% |
| Pontiac | 1.0% | 0.5% | 5.25% |
| Port Huron | 1.0% | 0.5% | 5.25% |
| Portland | 1.0% | 0.5% | 5.25% |
| Springfield | 1.0% | 0.5% | 5.25% |
| Walker | 1.0% | 0.5% | 5.25% |
A Detroit resident earning $60,000 pays $1,440 per year in city income tax alone (2.4%). Their coworker who commutes from Livonia (no city tax) pays $0. Same company, same salary, same state tax. The city tax creates a $1,440 annual gap. If the Livonia worker commuted to a job inside Detroit city limits, they'd pay the 1.2% nonresident rate ($720/year) instead of the full 2.4%.
City taxes are withheld by the employer and remitted directly to each city. They do NOT combine with state tax on the stub like Maryland does. Michigan stubs show the state tax and city tax as separate lines. Source: Michigan Department of Treasury
Michigan's $13.73 Minimum Wage: The Supreme Court Ruling That Changed Everything
Michigan's minimum wage jumped from $12.48 to $13.73 on January 1, 2026. That's confirmed by the Michigan Department of Labor and Economic Opportunity (December 8, 2025). But one online paystub tool still shows $10.56, which is more than $3 per hour too low. And one other source shows $13.29, which was from a court-ordered schedule that got replaced by compromise legislation. The correct number for 2026 is $13.73. Period.
The backstory is worth knowing because it explains why the numbers have been all over the map:
In 2018, advocacy groups collected enough signatures to put two ballot initiatives before the Michigan Legislature: one to raise the minimum wage and one to create earned sick time. Instead of letting voters decide, the Republican-majority legislature "adopted" both initiatives (which prevented them from going on the ballot) and then immediately "amended" them to strip out the biggest provisions. The wage increases were slowed. The tipped wage increase was killed. The sick time mandate was weakened.
In July 2024, the Michigan Supreme Court ruled in Mothering Justice v. Attorney General that this "adopt-and-amend" strategy was unconstitutional. The court restored the ORIGINAL ballot initiative provisions, which would have pushed wages higher faster. But before those provisions fully took effect, the Michigan Legislature passed bipartisan compromise legislation in 2025 that Governor Whitmer signed into law. The compromise set a new schedule:
| Date | Minimum Wage | Tipped Wage |
|---|---|---|
| February 21, 2025 | $12.48 | $4.74 (38% of minimum) |
| January 1, 2026 | $13.73 | $5.49 (40% of minimum) |
| January 1, 2027 | $15.00 | $6.30 |
So if you see $10.56 on a tool, that's from before the Supreme Court ruling. If you see $13.29, that's from the original court-ordered schedule before the 2025 compromise replaced it. The current, correct rate is $13.73 per the law Governor Whitmer signed.
What Gets Taken Out of a Michigan Paycheck: Detroit Resident vs. Suburban Worker
The city tax is what makes the biggest difference between Michigan stubs. A Detroit resident has six mandatory deduction lines. A worker in a suburb with no city tax has five. Same state, same salary, different take-home.
Detroit Resident, $20/hr, Biweekly
Setup: Jamal works at a manufacturing plant in Detroit. He lives in Detroit. Earns $20/hr, biweekly, 80 hours, files Single on Form MI-W4.
| Line Item | Amount |
|---|---|
| Gross Pay (80 hrs x $20.00) | $1,600.00 |
| Federal Income Tax (per IRS Pub. 15) | - $136.00 |
| Social Security, 6.2% (per IRS Topic 751) | - $99.20 |
| Medicare, 1.45% | - $23.20 |
| Michigan State Tax, 4.25% flat | - $68.00 |
| Detroit City Tax, 2.4% (resident) | - $38.40 |
| Estimated Net Pay | About $1,235 |
Suburban Worker (No City Tax), $20/hr, Biweekly
Setup: Same salary, same hours, same filing status. But Lisa lives in Livonia (no city tax) and works at a company in Livonia (also no city tax).
| Line Item | Amount |
|---|---|
| Gross Pay (80 hrs x $20.00) | $1,600.00 |
| Federal Income Tax | - $136.00 |
| Social Security, 6.2% | - $99.20 |
| Medicare, 1.45% | - $23.20 |
| Michigan State Tax, 4.25% | - $68.00 |
| City Tax | $0 |
| Estimated Net Pay | About $1,274 |
The suburban worker takes home $38.40 more per biweekly check. That's $998/year. Almost a thousand dollars a year from the Detroit city tax alone on a $20/hr wage. If Jamal didn't live in Detroit but commuted in from the suburbs, he'd pay the 1.2% nonresident rate instead ($19.20 per check, $499/year) rather than the full 2.4% resident rate.
Estimates based on 2026 rates and standard withholding. Actual amounts depend on Form MI-W4, personal exemptions, and voluntary deductions.
How Michigan's Dual Resident/Nonresident City Tax Actually Works
Michigan's city income tax doesn't work like Indiana's county system (which is purely residence-based) or like Kentucky's occupational tax (which is purely workplace-based). Michigan's system considers BOTH where you live and where you work, and the rate depends on your relationship to the taxing city.
If you LIVE in a taxing city (like Detroit), you pay the resident rate on all your income, regardless of where you work. A Detroit resident who commutes to a job in Dearborn still pays Detroit's 2.4% resident rate because Detroit taxes its residents on all income.
If you WORK in a taxing city but DON'T live there, you pay the nonresident rate on the income you earn in that city. A worker who lives in Troy (no city tax) and commutes to a job in Detroit pays the 1.2% nonresident rate on their Detroit-sourced wages.
If you LIVE in one taxing city and WORK in a different taxing city, you may owe tax to both. A Detroit resident who works in Grand Rapids could owe Detroit's 2.4% on all income AND Grand Rapids' 0.75% nonresident rate on Grand Rapids-sourced income. Credits and adjustments apply, but the complexity is real.
Remote Work Changes the Picture
Per Revonary (April 2026), if an employee works from home in a taxing city, that city's withholding requirements may apply, even if the employer's office is somewhere else. A worker who lives in Grand Rapids (1.5% resident rate) and works remotely for a company based in Ann Arbor (no city tax) may owe Grand Rapids city tax because the work is physically performed in Grand Rapids. This is a post-pandemic compliance issue that has caught many Michigan employers off guard.
Michigan's 6 Reciprocal Agreements (IL, IN, KY, MN, OH, WI)
Michigan has reciprocal tax agreements with six states: Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin. If you live in one of these states and work in Michigan, you can file a certificate of nonresidence with your Michigan employer. Your employer then withholds your home state's tax instead of Michigan's 4.25%.
| State | Key Commuter Corridor |
|---|---|
| Illinois | Michigan to Chicago area commuters |
| Indiana | Southwest Michigan to South Bend/Northern Indiana |
| Kentucky | General border traffic |
| Minnesota | General border traffic |
| Ohio | Detroit to Toledo corridor (thousands daily) |
| Wisconsin | Upper Peninsula to Wisconsin border communities |
The busiest reciprocal corridor is Detroit to Toledo. Tens of thousands of workers cross the Michigan-Ohio border daily along I-75. A Toledo resident working at a company in Monroe County, Michigan files the nonresidence certificate and has Ohio tax withheld instead of Michigan's 4.25%. An Ann Arbor resident working in Toledo has Ohio tax withheld and claims credit on their Michigan return.
Michigan Payroll Requirements 2026: What Every Employer Needs to Know
| Requirement | What Michigan Requires | Official Source |
|---|---|---|
| Pay stub mandate | Yes. Hours worked, gross pay, deductions, net pay. | Michigan LEO |
| State income tax | 4.25% flat | MI Treasury |
| Personal exemption | ~$5,600 per person (no standard deduction) | MI Treasury |
| City income tax | 24 cities, dual resident/nonresident rates | MI Treasury |
| Withholding form | MI-W4 | MI Treasury |
| Reciprocal agreements | IL, IN, KY, MN, OH, WI | Paylocity |
| Minimum wage | $13.73/hr (Jan 1, 2026). Going to $15.00 Jan 2027. | Michigan LEO |
| Tipped minimum | $5.49/hr (40% of minimum wage) | Michigan LEO |
| Overtime | 1.5x after 40 hrs/week (FLSA) | U.S. DOL |
| Earned sick time | 72 hrs/year (10+ employees) or 40 hrs/year (under 10) | Michigan LEO |
| State disability insurance | None | Paylocity |
| Paid family leave | None (no statewide PFML) | Paylocity |
| New hire reporting | Within 20 days | Michigan LEO |
Michigan SUI (State Unemployment Insurance), 2026
Employer-paid only. New employers start at 2.7%. The rate is calculated using three components: Chargeable Benefits Component (CBC), Account Building Component (ABC), and Nonchargeable Benefits Component (NBC). The taxable wage base is $9,500 per employee, though this can change if the Unemployment Insurance Agency Trust Fund balance reaches $2.5 billion for two consecutive quarters. Per Rippling's Michigan payroll guide, employers who make timely SUTA payments can receive a FUTA credit of up to 5.4%, reducing the effective federal unemployment rate to 0.6%.
Earned Sick Time (Restored by 2024 Supreme Court Ruling)
The same Mothering Justice v. Attorney General ruling that changed the minimum wage also restored Michigan's earned sick time law. Employers with 10 or more employees must provide up to 72 hours of paid sick time per year. Employers with fewer than 10 must provide up to 40 hours. The 2025 legislative compromise modified some provisions but kept the core mandate. This was a new compliance obligation for many Michigan employers starting in 2025.
Who Uses the Michigan Paystub Generator?
Auto Industry Workers (The Big Three and Their Suppliers)
Ford has its world headquarters and the Rouge Complex in Dearborn (Wayne County, no city tax). General Motors runs out of the Renaissance Center in Detroit (2.4% resident city tax / 1.2% nonresident). Stellantis (formerly Chrysler) is headquartered in Auburn Hills (Oakland County, no city tax). Beyond the Big Three, the supplier network is massive. BorgWarner, Lear, Magna, Gentex, and hundreds of other Tier 1 and Tier 2 suppliers employ tens of thousands of hourly and salaried workers across southeast Michigan. UAW members need stubs that correctly show their 4.25% state rate plus any applicable city tax. Our generator asks for your city of residence and work to determine the right rates.
Detroit Metro Workers
Quicken Loans (now Rocket Companies) in downtown Detroit. Blue Cross Blue Shield of Michigan. DTE Energy. Beaumont Health (now Corewell Health on the east side). Workers in Detroit face the highest city tax in the state at 2.4% for residents. Commuters from Southfield, Farmington Hills, Troy, and other suburbs pay the 1.2% nonresident rate. The difference shows up on every stub.
Grand Rapids Workers
Spectrum Health (now Corewell Health West), Amway, Meijer headquarters, Steelcase. Grand Rapids charges 1.5% for residents and 0.75% for nonresidents. Workers who live in Grand Rapids and work there pay the full 1.5%. Workers commuting from Kentwood, Wyoming, or Byron Center to a Grand Rapids office pay 0.75%.
University Workers
University of Michigan (Ann Arbor, no city tax), Michigan State University (East Lansing, 1% city tax for residents), Western Michigan University (Kalamazoo, no city tax), Wayne State University (Detroit, 2.4% residents). Faculty, graduate assistants, research staff, and campus workers across these universities need stubs with the right city tax based on their home address.
Cross-Border Commuters
Toledo-to-Detroit commuters (Ohio-Michigan reciprocity). Chicago-area residents working in southwest Michigan. Upper Peninsula workers crossing into Wisconsin. All covered by Michigan's 6 reciprocal agreements. Stubs should reflect the correct withholding based on the reciprocal situation.
Small Business Owners and Contractors
A restaurant in Traverse City. A construction crew in Kalamazoo. A dental practice in Lansing (1% city tax). A body shop in Flint (1% city tax). Michigan small businesses need to track which of their employees live or work in one of the 24 taxing cities and withhold the correct rate. Our generator handles it. Self-employed workers carry the full 15.3% FICA self-employment tax per IRS rules.
How to Create a Michigan Pay Stub: 3 Steps
Michigan has the city tax layer that most states don't. Pick your city of residence and work city, and the tool handles the dual-rate math.
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Enter company and employee info
Business name, address, employee name, address, pay period dates. Select the employee's city of residence AND their work city from the dropdown. If either is one of Michigan's 24 taxing cities, the tool applies the correct resident or nonresident rate. Michigan uses Form MI-W4 for state withholding. -
Enter earnings and deductions
Hourly rate or salary (at least $13.73/hr), hours worked, any overtime. Tips if applicable ($5.49 tipped minimum). Add voluntary deductions. The tool applies 4.25% state tax, the correct city tax(es), and all federal deductions automatically. -
Free preview, then download
Check every line. Gross pay, mandatory deductions (federal, SS, Medicare, MI 4.25%, city tax if applicable), voluntary deductions, net pay, YTD totals. Pay and download when satisfied.
When You Need a Michigan Pay Stub as Proof of Income
Renting in Detroit, Grand Rapids, Ann Arbor, or Anywhere in Michigan
Ann Arbor has one of Michigan's tightest rental markets, driven by the University of Michigan. Grand Rapids rents have climbed with the city's growth. Detroit's midtown and downtown are seeing rental increases as the city revitalizes. Landlords want two to three recent stubs showing gross monthly income of at least 2.5 times the rent.
Auto Loans
Michigan lenders like Lake Michigan Credit Union, Consumers Credit Union, and Flagstar Bank request recent stubs during auto loan processing. Having documentation with the correct city tax line (if applicable) avoids processing questions.
Mortgage Applications
Michigan home prices vary dramatically from Detroit ($85K median in some areas) to Ann Arbor ($400K+). Lenders want your two most recent stubs plus W-2s. Stubs showing the correct $13.73 minimum wage and right city tax rate align with actual withholding and avoid underwriting delays.
Michigan DHHS Programs (SNAP, Medicaid)
The Michigan Department of Health and Human Services requires current income documentation for SNAP, Healthy Michigan Plan (Medicaid), and other assistance programs through the MI Bridges portal. Pay stubs are the standard accepted income document.
Michigan vs. Neighboring States: The Full 2026 Tax Comparison
| State | Income Tax | Local Tax | Reciprocal with MI? | Minimum Wage |
|---|---|---|---|---|
| Michigan | 4.25% flat | 24 cities (1%-2.4%) | N/A | $13.73 |
| Ohio | 0% to 3.5% | Many cities (1%-2.5%) | Yes | $10.70 |
| Indiana | 2.95% flat | All 92 counties (0.5%-3.38%) | Yes | $7.25 |
| Illinois | 4.95% flat | None | Yes | $15.00 |
| Wisconsin | 3.5% to 7.65% | None | Yes | $7.25 |
| Minnesota | 5.35% to 9.85% | None statewide | Yes | $11.13 |
Michigan's 4.25% flat rate sits in the middle of its neighbors. It's lower than Illinois (4.95%), much lower than Minnesota's top rate (9.85%), and lower than Wisconsin's top rate (7.65%). But it's higher than Indiana (2.95%) and Ohio's effective rate for most workers. The city tax adds another layer that Illinois, Wisconsin, and Minnesota don't have. A Detroit resident at 4.25% + 2.4% = 6.65% combined is paying more than Illinois' flat 4.95%. But a Michigan worker in a non-city area at a flat 4.25% is cheaper than Illinois.
The reciprocal agreements with all five neighboring income-tax states (OH, IN, IL, WI, MN plus Kentucky) mean cross-border workers don't get taxed by both states. Michigan's reciprocal network is one of the most useful in the country, covering every state it shares a border with plus Kentucky.
Common Questions About Michigan Pay Stubs
What is Michigan's income tax rate for 2026?
4.25% flat. One online tool shows 4.05%, which was a disputed rate from 2023 when an automatic revenue trigger was supposed to lower it. The trigger was contested and the rate reverted to 4.25%. Every reliable source confirms 4.25% for 2026. Sources: Paylocity (March 2026), Revonary (April 2026).
Does Detroit have city income tax?
Yes, and it's the highest in Michigan. Detroit charges 2.4% for residents and 1.2% for nonresidents who work in the city. Highland Park charges 2.0%/1.0%. Grand Rapids and Saginaw charge 1.5%/0.75%. The other 20 taxing cities charge the standard 1%/0.5%. The city tax is separate from the state tax on your stub.
What is Michigan minimum wage for 2026?
$13.73/hr as of January 1, 2026. Confirmed by the Michigan LEO (December 2025). One tool still shows $10.56 (years outdated). Another shows $13.29 (a superseded court-ordered schedule). The current law schedules $15.00 for January 2027. Tipped employees earn $5.49/hr (40% of minimum).
Does Michigan have reciprocal tax agreements?
Yes, with six states: Illinois, Indiana, Kentucky, Minnesota, Ohio, and Wisconsin. Workers from these states employed in Michigan can file for exemption from Michigan withholding. The Detroit-Toledo corridor and Michigan-Indiana border see the heaviest reciprocal traffic.
How does Michigan city tax work for residents vs. nonresidents?
If you LIVE in a taxing city, you pay the resident rate on all income. If you WORK in a taxing city but live outside it, you pay the lower nonresident rate on income earned there. Detroit residents pay 2.4%. Detroit commuters pay 1.2%. This dual system means your stub depends on both your home address and your work address.
Does Michigan require pay stubs?
Yes. Employers must provide statements showing hours worked, gross pay, deductions, and net pay. Michigan also has a restored earned sick time law: 72 hours/year for employers with 10+ employees, 40 hours for those with fewer than 10.
Does Michigan have a standard deduction?
No. Michigan uses personal exemptions (~$5,600 per person) instead of a standard deduction, similar to Massachusetts. This means more of your income is subject to the 4.25% rate than it would be in a state with a typical $12,000-$16,000 standard deduction.
Official Sources Referenced on This Page
Michigan Department of Labor and Economic Opportunity (December 8, 2025) confirmed the $13.73 minimum wage, $5.49 tipped wage, and $11.67 minor rate effective January 1, 2026.
Michigan Department of Treasury covers the 4.25% flat income tax rate, personal exemptions, Form MI-W4, city income tax administration, and employer withholding requirements.
Paylocity (March 2026) confirmed the 4.25% rate, reciprocal agreements (IL, IN, KY, MN, OH, WI), and SUI details.
Revonary (April 2026) confirmed 4.25% for 2026, provided city tax details for Detroit/Grand Rapids/Saginaw/Highland Park, and covered remote work city tax exposure.
Bridge Michigan (December 2025) and Michigan Independent (January 2026) provided the minimum wage backstory including the Supreme Court ruling and legislative compromise.
LegalClarity (June 2026) confirmed $13.73 for 2026, the tipped wage at 40% of minimum ($5.49), and the Mothering Justice v. Attorney General ruling details.
Rippling Michigan Payroll Guide confirmed the 4.25% rate, city tax structure, SUI components, and FUTA credit details.
Michigan DHHS covers income verification for SNAP, Healthy Michigan Plan, and assistance programs.
IRS Topic 751 covers FICA rates (6.2% SS, 1.45% Medicare). SSA confirms the 2026 wage base at $184,500. IRS Publication 15 provides federal withholding tables.
Ready to Create Your Michigan Pay Stub?
Michigan payroll has a flat state rate, 24 cities with their own taxes, a minimum wage that jumped after a Supreme Court ruling, and six reciprocal agreements with neighboring states. One tool shows the wrong state rate. Another shows a minimum wage that's $3 too low. Our generator uses the correct 4.25% from the Michigan Treasury, the correct $13.73 wage from Michigan LEO, and the right city tax rate based on where you live and work.
Free preview. No signup. State rate from Michigan Treasury. Minimum wage from Michigan LEO. Federal calculations per IRS. Updated June 2026.