Changelog · verified 2026-08-05
What changed for 2026
The 2026 tax year brings the usual annual inflation adjustments plus one Michigan-specific note. Nothing about the state\u2019s flat rate changed, but several federal numbers moved, and those move every Michigan paycheck.
Michigan: rate stays 4.25%
Michigan\u2019s income tax rate remains a flat 4.25% for 2026. State law scheduled the rate to fall to 4.05% when general fund revenue growth exceeded inflation in the 2024–2025 fiscal year; that trigger was not met, so the rate stays at 4.25%. The $5,900 per-filer personal exemption continues unchanged. This site\u2019s data file reflects 4.25% and would be updated immediately if the rate drops in a future year.
Federal standard deduction 2026
The federal standard deduction rises to $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household for 2026. Because it is subtracted before federal tax is computed, the higher deduction means slightly more of every paycheck stays with you compared with 2025.
Federal brackets 2026
The 2026 federal brackets were adjusted for inflation. For single filers: 10% up to $12,400; 12% to $50,400; 22% to $105,700; 24% to $201,775; 32% to $256,225; 35% to $640,600; and 37% above. The bracket widths are wider than 2025, which holds more of your income in the lower rates.
Social Security wage base rises to $184,500
The Social Security wage base — the earnings ceiling for the 6.2% Social Security payroll tax — rises to $184,500 for 2026. The 1.45% Medicare tax has no cap, and the extra 0.9% Medicare surtax still applies above $200,000 for single filers ($250,000 married filing jointly).
City income taxes: no changes
No Michigan city has a rate change on the books for 2026. Detroit remains the highest at 2.4% resident / 1.2% non-resident, followed by Highland Park at 2.0% / 1.0%, Grand Rapids and Saginaw at 1.5% / 0.75%, and 20 more cities at the standard 1.0% / 0.5%. The 10 major non-taxing cities — Ann Arbor, Troy, Warren, Sterling Heights, Livonia, Dearborn, Farmington Hills, Kalamazoo, Wyoming and Rochester Hills — remain without a city income tax.
Retirement exclusion indexed
Michigan\u2019s retirement income exclusion is inflation-indexed. For 2026 it stands at $67,610 for single filers and $135,220 for married couples filing jointly. Social Security remains completely untaxed in Michigan.
What didn\u2019t change
Michigan still has no paid-leave payroll tax and no separate payroll tax beyond the 4.25% income tax. FICA rates stay at 6.2% and 1.45%. The 22% federal supplemental rate on bonuses is unchanged. All of these are reflected in the calculator.
How the calculator tracks the changes
All of the numbers above live in a single data file that the calculation engine reads. When any figure changes — a state rate cut, a new wage base, a city rate change — the data file is updated and every page of the site recalculates automatically. This page is the changelog for that process.