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MI

Michigan Nanny Tax Guide

Michigan has a flat 4.25% state income tax, but Detroit and some other cities impose local income taxes. The personal exemption significantly reduces taxable income.

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Michigan household employer quick facts

State Income Tax
State Unemployment
Disability Insurance
Paid Family Leave

Minimum Wage

$10.56/hour

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SUTA Rate Range

0.05% - 10.78%

Key things to know
  • Flat state income tax of 4.25%
  • Detroit has local city tax (2.4%)
  • Personal exemption of $5,900
  • No disability or paid leave requirements

Michigan Employer Requirements

State Income Tax

Michigan uses a flat 4.25% income tax rate. A personal exemption of $5,900 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.

Michigan household employer questions

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.

Verified accurate as of April 2026Sources: Michigan tax agency, IRS Publication 926
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