Troy paycheck calculator — no city income tax

The Troy guide

Troy city income tax, explained

Troy — the heart of Oakland County’s tech and auto-supplier corridor — has no city income tax. Your take-home here is federal, FICA, and Michigan’s flat 4.25%, with no city line on the stub.

No city income tax in Troy

The city of Troy does not levy a city income tax. Residents and non-residents who work in Troy owe nothing to the city on wages — no resident rate, no non-resident rate. Your withholding is federal + FICA + Michigan 4.25%, nothing more. For the tens of thousands of people who work in Troy’s corporate campuses — in automotive technology, IT, engineering and financial services — that means every dollar of their income that isn’t withheld federally or for the state is theirs to keep.

The Oakland County tech corridor

Troy anchors the biggest concentration of headquarters and tech jobs in Michigan outside Detroit: the Big Beaver and Maple Road office corridors are home to auto suppliers, software firms and professional-services companies. Workers live across Oakland County and commute in from as far as Wayne and Macomb counties. Because Troy has no city tax, none of those commuters see a city line for their Troy wages — the notable exception being residents of other taxing cities (Pontiac, Highland Park), whose home cities tax their income regardless.

What $85,000 looks like in Troy

A single filer at $85,000, one exemption, in Troy nets roughly $63,300 a year — about $2,435 biweekly — with no city tax. Run the identical salary in Pontiac and the 1% resident rate takes about $850; in Detroit, 2.4% takes about $2,040. The calculator shows all three so a job offer comparison takes seconds.

A clean stub is a recruiting advantage

Troy’s employers routinely pitch the no-city-tax reality when competing for talent against Detroit-based jobs. At $85,000 the difference is $2,040 a year — over $78 a biweekly check. For a recruiter it’s the kind of number that closes an offer; for an employee it’s real disposable income.

What local costs remain

Troy is not tax-free overall — property taxes on Troy’s high-value homes are a real cost of living in the city, and there are utility and assessment fees. But nothing comes out of wages. If you ever see a "city tax" or "local tax" line on a Troy paycheck, it’s an error worth flagging to payroll.

The corporate HQ and engineering workforce

Troy’s Big Beaver corridor is one of the densest concentrations of corporate headquarters and engineering jobs in the Midwest — auto suppliers, software firms, and professional services employing thousands at salaries from $70,000 well into six figures. For that workforce the no-city-tax status is a headline number: a $95,000 engineer nets roughly $69,750 a year in Troy with no city line, versus about $67,500 in a 2.4% city — a difference of roughly $96 a check. When employers recruit across the Metro Detroit footprint, that gap is part of the pitch, and the calculator reproduces it exactly.

Hourly and service workers along Big Beaver

Not all of Troy’s employment is salaried — the retail and service sectors along Big Beaver and the corridors employ a large hourly workforce, and the commercial office parks support janitorial, security and food-service jobs at lower wages. For those workers the no-city-tax status is equally real: a $20/hour worker nets the full value of every shift after federal, FICA and the flat state rate, with no local line. The hourly mode of the calculator shows that take-home share clearly, and it never invents a city tax the way a generic tool might.

The regional comparison game

Troy is the centerpiece of the no-tax zone in northern Oakland County, surrounded by other non-taxing cities — Sterling Heights, Rochester Hills, Bloomfield. The only taxing city within commuting range is Pontiac at 1%. For anyone comparing a Troy offer against a Pontiac offer, the calculator makes the difference exact: identical gross, about 1% of taxable wages more in take-home on the Troy side. It’s the kind of comparison that turns a nominal salary gap into a real net-pay decision.

Retirees, second earners and families

Troy’s neighborhoods are built around schools and families, and many households have two earners. With no city tax on either paycheck, a dual-income household keeps the full value of both incomes after federal, FICA and state — a structural advantage versus a household in a taxing city. Retirees pay nothing to the city on Social Security or pensions, since Troy has no city income tax at all. The calculator models each earner separately or the household together, so the family picture is as clear as the single-paycheck one.

The Pontiac commute in both directions

Troy’s closest taxing city is Pontiac at 1%. A Troy resident who takes a job in Pontiac pays Pontiac’s 0.5% non-resident rate on those wages — about $275 a year on $55,000. A Pontiac resident working in Troy pays Pontiac’s full 1% resident rate on all their income while Troy adds nothing. The asymmetry is a constant feature of Oakland County employment, and the calculator’s city selector plus residency toggle handles both directions exactly.

How the calculator handles Troy exactly

Leave the city selector at "no city tax" (or set it to Troy, which is non-taxing) and enter gross, frequency, filing status, exemptions and pre-tax amounts. The tool applies federal, FICA and Michigan’s flat 4.25% — no city line — and returns the exact net per period. Toggle the city to Pontiac to see what the same paycheck would carry across the border. Every figure is the verified 2026 rate.

Bonuses, commissions and RSUs

Troy’s corporate and tech workforce often earns bonuses, commissions and equity grants on top of salary. Those supplemental payments are withheld at the flat 22% federal supplemental rate, then at the FICA, state and — in Troy — zero city level. A $10,000 bonus in Troy loses 22% federal, 7.65% FICA and 4.25% state, keeping about $6,610 — versus about $6,510 in a 1% city. The bonus mode models it exactly, which matters in a city where variable pay is common.

Common questions from new residents

New Troy residents ask whether the city taxes wages (no), whether the surrounding area is the same (yes — Rochester Hills, Sterling Heights and Bloomfield are all non-taxing), and whether a Pontiac job changes things (yes — 0.5% non-resident on those wages). The calculator answers each with the actual numbers.

Three Troy scenarios

A $80,000 resident nets about $59,880 a year with no city line; a $100,000 engineer nets roughly $73,560; and a $75,000 resident who commutes to Pontiac pays only the 0.5% non-resident rate on those wages while Troy adds nothing. All three are exact in the calculator.

The full withholding stack in Troy

A Troy resident’s check comes out in four visible layers: federal progressive tax after the standard deduction; FICA at 6.2% and 1.45%; Michigan’s flat 4.25% on the state taxable base after the $5,900 exemption; and no city line at all. Pre-tax 401(k) and health contributions reduce the federal and state lines together, while FICA is computed on wages net of health only. The absence of the city line is exactly why Troy and its neighbors show up so often in metro-Detroit compensation discussions — two otherwise identical offers in Troy and Pontiac differ by roughly $700 a year on a $70,000 salary before any commute.

Troy vs. the taxing corridor, by the numbers

The metro-Detroit comparison that matters most is Troy against a taxing city. Take a $78,000 single filer: in Troy the annual city line is $0; in Pontiac it is $780 (resident) or $390 (non-resident commuting in); in Royal Oak the general rate adds a smaller slice. Over a year that is the difference between roughly $57,900 in Troy and $57,120 in Pontiac — before any commute or parking cost. Because the federal, state and FICA lines are identical, the whole gap is the city tax, which is exactly why the calculator’s city selector lets you price a job offer in Troy versus Pontiac in seconds.