Last updated: December 17th, 2025
Each state has unique income tax withholding rules. Below are Michigan's 2026 withholding instructions, including allowance calculations, standard deduction adjustments, and the percentage method for determining tax due.
Employers must also adhere to federal income tax withholding rules. More information can be found here about federal rates.
Alternatively, employers can automatically calculate payroll withholding by using ezPaycheck.
| State Abbreviation | MI |
|---|---|
| State Tax Withholding State Code | 26 |
| Acceptable Exemption Form | MI W-4 or W-4 |
| Basis For Withholding | State Standard Deduction and Allowances |
| Acceptable Exemption Data | 0/ Number of Allowances |
| TSP Deferred | Yes |
| Special Coding | Determine the Total Number Of Allowances field as follows: Second and Third Positions - Enter the number of exemptions claimed (Line 6 on the MI-W4). |
| Additional Information | None |
| Official State Tax Website | Visit Official Website |
Michigan's MI-W4 allows an employee to claim a number of personal and dependent exemptions equal to those on their state return. This typically is 1 for themselves (unless claimed as dependent) and 1 for a spouse (if filing jointly), plus 1 for each dependent. Michigan does not explicitly list additional allowances for age or blindness on the MI-W4 (although MI tax law offers extra exemptions for age 67+, those are handled on the return, not via withholding form).
| Component | Allowances | Notes |
|---|---|---|
| Yourself | 1 exemption | Unless claimed as dependent |
| Spouse | 1 exemption | If filing jointly |
| Each Dependent | 1 exemption | Per dependent |
Total Exemptions = Yourself + Spouse + Dependents
The MI-W4 instructions caution not to claim a spouse's exemption if the spouse is separately claiming it or to double-claim dependents between spouses. Extra exemptions for age 67+ are handled on the tax return, not via the withholding form.
For links to official state tax and revenue websites for all 50 states, visit our State and Local Tax Sites page.
Subtract the nontaxable biweekly Thrift Savings Plan (TSP) contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal Health Benefits Plan payments (includes dental, vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in Step 1.
Add taxable fringe benefits (e.g., taxable life insurance) to the amount computed in Step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages by 26 to obtain the gross annual wages.
Subtract the appropriate standard deduction (based on filing status) from the gross annual wages to determine the taxable income.
Calculate the gross tax by applying the flat 4.25% rate to the taxable income.
Gross Tax = Taxable Income × 4.25%
Add any additional withholding (if applicable) to the net tax.
Divide the final annual Michigan tax withholding by 26 to obtain the biweekly Michigan tax withholding.
Want to calculate in an easier way? Learn how to calculate Michigan taxes via ezPaycheck below.
Learn More| Annualized Wages | Deduction |
|---|---|
| All | $5,800 |
Standard deduction for all filing statuses.
| Annualized Wages | Deduction |
|---|---|
| All | $5,800 |
Standard deduction for all filing statuses.
| Annualized Wages | Deduction |
|---|---|
| All | $5,800 |
Standard deduction for all filing statuses.
Rate: 4.25%
Michigan uses a flat tax rate of 4.25% on taxable income after standard deduction.
ezPaycheck simplifies payroll calculations, including Michigan's withholding rules. Easily compute taxes, generate reports, and print paychecks or tax forms.
We strive to provide accurate and up-to-date Michigan state tax information for 2026. If you notice any discrepancies, errors, or have questions about the tax rates or calculations shown on this page, please contact our support team. We appreciate your feedback and will review and update the information as needed.
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