How Detroit taxes your pay
Detroit taxes its residents on all their pay, wherever they work, and taxes people who live elsewhere at a lower rate on pay for work done in the city. A Detroit resident who works in Southfield still owes the resident rate.
Personal exemptions claimed on the city's DW-4 certificate reduce the pay that is taxed. The calculator assumes none unless you enter them in the Adjust section.
Detroit tax rates for 2026
- Detroit city income tax: 2.4% of pay for residents, wherever they work; 1.2% for people who live elsewhere, on pay for work done here.
| Salary | Live and work here | Work here, live elsewhere in Michigan | Take-home, living here | Take-home with no local tax |
|---|---|---|---|---|
| $40,000 | $960 | $480 | $31,660 | $32,620 |
| $60,000 | $1,440 | $720 | $46,400 | $47,840 |
| $75,000 | $1,800 | $900 | $56,605 | $58,405 |
| $100,000 | $2,400 | $1,200 | $72,530 | $74,930 |
| $150,000 | $3,600 | $1,800 | $103,816 | $107,416 |
| $250,000 | $6,000 | $3,000 | $166,557 | $172,557 |
The commuter column assumes a home elsewhere in Michigan with no local tax of its own; a home city or county with its own tax can add to it or credit it.
Worked example: the Michigan median wage in Detroit
The median annual wage in Michigan is $49,270: half of all jobs pay more and half pay less, in the Bureau of Labor Statistics wage survey for May 2025 (all occupations; survey date May 31, 2025). Paid every two weeks as a single filer, with no 401(k) or benefits, that salary works out like this in Detroit, Michigan.
| Line | Each paycheck | Year |
|---|---|---|
| Gross pay | $1,895.00 | $49,270.00 |
| Federal income tax | $143.55 | $3,732.30 |
| Social Security | $117.49 | $3,054.74 |
| Medicare | $27.48 | $714.48 |
| Michigan income tax | $80.54 | $2,094.04 |
| Detroit city income tax | $45.48 | $1,182.48 |
| Take-home pay | $1,480.46 | $38,491.96 |
You keep 78.1% of gross pay. Of the $10,778 withheld, federal income tax is the largest part at $3,732, followed by Social Security at $3,055.
Without the local tax the same salary would leave $39,674 a year in Michigan, so living and working in Detroit costs $1,182 a year, or 2.4% of pay.
Detroit paycheck questions
How much is Detroit local tax on $75,000 a year?
$1,800 for the year if you live and work in Detroit, single and paid every two weeks, and $900 if you work there but live elsewhere in Michigan. That leaves $56,605 after all taxes, against $58,405 with no local tax.
Do I pay Detroit tax if I live there but work somewhere else?
Yes. Detroit taxes residents on their pay wherever they work.
What is the Michigan median wage after tax in Detroit?
The median wage in Michigan is $49,270 (Bureau of Labor Statistics, May 2025). Living and working in Detroit, that leaves $38,492 a year after federal, Michigan, FICA and $1,182 of local tax.
What does a paycheck look like in Detroit?
At the Michigan median wage, paid every two weeks, each paycheck is $1,895.00 before tax and $1,480.46 after it. $45.48 of that goes to Detroit, next to $143.55 of federal income tax and $80.54 for Michigan.
How much Detroit tax is withheld on $250,000?
$6,000 for the year living and working there, which leaves $166,557 after every tax, against $172,557 with no local tax.
Sources
Rules checked . How we calculate.