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Michigan taxes at a glance (2026)

Michigan has a flat 4.25% income tax with a standard deduction of $0 (single) / $0 (married). Flat 4.25% individual income tax for tax year 2026, officially confirmed by Michigan Treasury (Apr 15, 2026) - FY2025 general fund revenue fell 1.56% and inflation was 2.70%, which did NOT trigger the statutory rate-reduction formula, so the rate stays at 4.25% (the temporary 4.05% rate applied only to 2023). No standard deduction; instead Michigan uses a personal/dependency exemption of $5,900 per taxpayer and dependent for 2026 (up from $5,800 in 2025), so roughly $5,900 single / $11,800 MFJ for two exemptions, functioning as the base subtraction from AGI. Social Security benefits are fully exempt. Public Act 4 of 2023 phases out the retirement-income tax: for TY2026 taxpayers (regardless of birth year) may deduct combined public and private retirement/pension benefits up to the inflation-adjusted maximum (tiered by birth year, fully phased in by 2026). PA 24 of 2025 lets taxpayers born after 1952 and aged 67+ claim both the standard/senior deduction and the Social Security deduction for TY2026-2028. 24 Michigan cities levy a local income tax under the Uniform City Income Tax Ordinance (Act 284 of 1964): Detroit 2.4% resident / 1.2% nonresident; Grand Rapids and Saginaw 1.5% / 0.75%; ~20 other cities 1% / 0.5%.