🏛️
Taxes
Michigan Payroll Taxes 2026: Complete Overview for Employers
Michigan flat 4.25% (+ some city taxes) income tax, SUI on the first $9,500, and all employer tax obligations explained.
Practical guides on MI payroll taxes, employer registration, SUI, minimum wage, and labor laws — written for small business owners, not accountants.
Written by payroll professionals at Pacific Data Services — trusted since 1969.
Michigan’s flat 4.25% income tax rate simplifies statewide withholding, though cities like Detroit and Grand Rapids levy additional local taxes.
About two dozen Michigan cities levy their own income taxes (typically 1%–2.4%), requiring extra withholding for employees working in those jurisdictions.
Michigan’s $9,500 SUI wage base keeps base unemployment costs manageable, though the maximum rate of 10.30% can be significant.
Michigan flat 4.25% (+ some city taxes) income tax, SUI on the first $9,500, and all employer tax obligations explained.
Get your EIN, register with Michigan, set up withholding, new hire reporting — the complete checklist.
New employer rate 2.7%, experienced range 0.06%–10.30%, wage base $9,500.
Michigan minimum wage $10.56/hr. Michigan’s minimum wage is $10.56/hr. Tipped employees may be paid $4.01/hr.
IRS classification rules, Michigan-specific considerations, misclassification penalties.
Gusto vs Paychex vs QuickBooks vs ADP — detailed comparison for Michigan small businesses.