Detroit tax guide
At a $75,000 salary, working in Detroit costs an extra $1,800/year in local taxes compared to a Michigan location with no local tax, bringing annual take-home down to $56,605.
Key tax highlights
Payroll
- Detroit taxes residents and nonresidents at different rates, so your home address matters for the paycheck calculation.
- Both resident and commuter rates are withheld from each paycheck on top of Michigan state tax.
Local taxes
- Detroit applies a 2.4% / 1.2% local wage tax on earned income.
- Nonresidents working in Detroit pay a reduced rate of 1.2%.
Salary examples
Take-home estimates including local tax as a separate line. At $75,000, the local tax adds $1,800 per year. Use the calculator above with your actual salary for a precise estimate.
| Salary | Federal | State | Local | FICA | Take-Home | Rate |
|---|---|---|---|---|---|---|
| $50,000 | $3,820 | $2,125 | $1,200 | $3,825 | $39,030 | 78.1% |
| $75,000 | $7,670 | $3,188 | $1,800 | $5,738 | $56,605 | 75.5% |
| $100,000 | $13,170 | $4,250 | $2,400 | $7,650 | $72,530 | 72.5% |
| $150,000 | $24,734 | $6,375 | $3,600 | $11,475 | $103,816 | 69.2% |
Resident and work caveats
- Detroit local tax treatment can depend on whether you are taxed as a resident, a commuter, or both under local rules.
- Use the calculator as an estimate and verify edge cases when your home and work locations differ.
Other Michigan city pages
| City | Local rate |
|---|---|
| Grand Rapids | 1.5% |
| Lansing | 1% |
| Flint | 1% |
| Saginaw | 1.5% |