Michigan paychecks in 2026: what changed
Michigan's rate stayed the same for 2026; the exemption and minimum wage went up.
The changes
- New federal withholding tables. The IRS updated Publication 15-T for 2026, including changes from the 2025 tax law. The standard deduction is $16,100 single, $32,200 married filing jointly, and $24,150 head of household.
- Social Security wage base: $184,500 (up from $176,100). If you earn more, Social Security stops later in the year.
- Tips and overtime deductions for 2025–2028 — see below.
- Income tax: still 4.25%.
- Personal exemption: $5,900 per exemption (was $5,800 in 2025).
- Minimum wage: $13.73 from January 1, 2026 (was $12.48 from February 21, 2025); tipped $5.49.
- Detroit city income tax: 2.4% residents, 1.2% non-residents.
Tips and overtime in 2026
New federal deductions apply for 2025 through 2028: up to $25,000 for qualified tips, and up to $12,500 ($25,000 for joint filers) for the extra "half" of time-and-a-half overtime. Both phase out above $150,000 of income ($300,000 joint).
These are deductions on your tax return. Your employer still takes Social Security and Medicare out of tips and overtime, and still withholds income tax unless you tell it otherwise. If you expect to claim them, you can put the expected amount in Step 4(b) of your W-4 (and in the Step 4(b) box above) so less income tax is withheld during the year.
Work out your 2026 Michigan paycheck →
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Sources
- IRS Publication 15-T (2026), Federal Income Tax Withholding Methods — Worksheet 1A and the annual percentage-method tables
- IRS Publication 15 (2026), Employer's Tax Guide — Social Security and Medicare rates
- Social Security Administration — 2026 wage base of $184,500
- IRS — tips and overtime deductions
- Michigan Department of Treasury — Form 446, 2026 Michigan Income Tax Withholding Guide — 4.25%; $5,900 personal exemption for 2026; fringe benefits follow IRS Publication 15
- Michigan Department of Treasury — Withholding tax calculator — used to check the tests' paychecks for tax year 2026
- Michigan Department of Treasury — Form MI-W4, Employee's Michigan Withholding Exemption Certificate — no MI-W4 means no exemptions
- Michigan Department of Treasury — Form 446, 2025 Michigan Income Tax Withholding Guide — $5,800 personal exemption for 2025
- Michigan Department of Treasury — Form 5469, 2026 City of Detroit Income Tax Withholding Guide — 2.4% residents, 1.2% non-residents, $600 per exemption; worked example
- Michigan LEO — About UIA and unemployment insurance in Michigan — unemployment is funded by taxes employers pay
- Michigan LEO Wage and Hour — Minimum Wage and Overtime FAQ — $13.73 and $5.49 tipped from January 1, 2026; overtime over 40 hours in a 7-day workweek
- Michigan LEO — Minimum Wage and Overtime — $13.73 from January 1, 2026; $15.00 from January 1, 2027
- Michigan LEO — Payment of Wages and Fringe Benefits Act, Public Act 390 of 1978 — regular paydays; pay statement; final pay on the regular payday
- Michigan LEO — Payment of wages: statute of limitations — complaint within 12 months