Michigan Nanny Tax Guide
Michigan has a flat 4.05% state income tax, but Detroit and some other cities impose local income taxes. The personal exemption significantly reduces taxable income.
Minimum Wage
$10.56/hour
SUTA Rate Range
0.05% - 10.78%
Key Things to Know
- Flat state income tax of 4.05%
- Detroit has local city tax (2.4%)
- Personal exemption of $5,600
- No disability or paid leave requirements
Michigan Employer Requirements
State Income Tax
Michigan uses a flat 4.05% income tax rate. A personal exemption of $5,600 per person substantially reduces taxable income.
Detroit City Tax
Detroit residents pay 2.4% city income tax, while non-residents working in Detroit pay 1.2%. Other cities like Grand Rapids also have local taxes.
State Unemployment Insurance
Employers pay SUI tax on the first $9,500 of wages. New employer rate is 2.7%, with rates ranging from 0.05% to 10.78% based on experience.
What will it cost?
Wondering what you'll actually owe as a Michigan employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.
This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.
Learn More
Nanny Tax Calculator
See exactly what you'll owe in taxes for your situation.
2026 Tax Deadline Calendar
All quarterly deadlines for Michigan and federal taxes.
Complete Guide to Nanny Taxes
Everything you need to know about household employment taxes.
Nanny Cost by State
Compare Michigan employer costs to all 50 states.
NannyKeeper handles Michigan taxes automatically
We calculate and track all state-specific requirements so you don't have to.
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