Detroit, MI Local Income Tax 2026

Detroit, MI local tax rates (2026)

Tax type: Flat wage tax

Resident rate: 2.4%

Non-resident rate: 1.2%

Resident vs non-resident rates

Residents of Detroit, MI pay 2.4% on all wages. Non-residents who work in Detroit, MI pay a lower rate of 1.2%. The residency distinction matters if you live outside the city but work within it.

How to calculate your take-home in Detroit, MI

Your take-home pay in Detroit, MI is reduced by four layers of taxes: federal income tax, Social Security and Medicare (FICA), MI state income tax, and the Detroit, MI local tax. Use the calculator below to see all four components broken out for your specific salary and pay frequency.

Calculate your exact Detroit, MI take-home — local tax included.

Open calculator for Detroit, MI →

Note: 2026 City of Detroit Income Tax Withholding Guide, Form 5469. Engine currently applies residentRate when both resident and nonResident rates are present; add a separate nonresident key before exposing nonresident Detroit calculations.

Official local-tax source: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/City-Withholding/TY2026/5469_ty2026.pdf

Frequently asked questions

Does Detroit, MI have a local income tax?

Yes. Detroit, MI (MI) has a local flat wage tax. The resident rate is 2.4% and the non-resident rate is 1.2%.

Who pays the Detroit, MI local tax?

Both residents of Detroit, MI and non-residents who work within the city limits owe the tax, though at different rates.

How is the Detroit, MI local tax withheld?

Employers in Detroit, MI are typically required to withhold local income tax from employee wages and remit it to the local tax authority. If you are self-employed or your employer does not withhold, you may need to pay estimated local taxes directly.

How does the Detroit, MI local tax affect my take-home pay?

On a $75,000 salary, the modeled Detroit, MI local tax would reduce take-home by approximately $1,800 per year. Use the calculator below to see the exact impact for your specific salary.