PAYROLL TAX RATES
Michigan payroll tax rates
Unemployment tax, income tax withholding, minimum wage and paid leave in Michigan, each with its effective date and the agency page it comes from.
Unemployment insurance
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Michigan Unemployment Insurance Agency (UIA) (opens in a new tab) | Michigan LEO, UIA Resources for Employers (opens in a new tab) | |
| Taxable wage base | $9,000 | Michigan UIA, FAQ: Taxable Wage Base (opens in a new tab) | |
| Wage base set each year | No | Michigan Compiled Laws 421.44(4) (opens in a new tab) | |
| New employer rate | 2.7%2.7% for the first two years of liability; construction employers pay the average construction-industry rate instead (5.0% for 2026)Surcharges includedConstruction 5% | Michigan UIA, Unemployment Insurance Taxes (Tax Rate Summary for 2026) (opens in a new tab) | |
| Employee contribution | None | Michigan UIA, Unemployment Insurance Taxes (opens in a new tab) | |
| When an employer becomes liable | Liable once you pay $1,000 or more in wages in a calendar year, or have at least one worker in 20 different weeks of a calendar year. Also liable if you pay FUTA in another state or take over a Michigan business. Farm employers: $20,000 cash payroll in a quarter or 10 workers in 20 weeks. Household employers: $1,000 cash in a quarter. | Michigan UIA, Michigan Employer Liability Toolkit (4/2026, PDF) (opens in a new tab) | |
| Experience rate after | 2 years | Michigan UIA, FAQ: Tax Rates and Liability (opens in a new tab) | |
| Quarterly report due | Quarterly wage/tax report due April 25, July 25, October 25 and January 25 (the following Monday when the 25th falls on a weekend) | Michigan UIA, FAQ: Tax Rates and Liability (opens in a new tab) | |
| FUTA credit reduction | Not yet set | US DOL OUI, FUTA Credit Reductions (opens in a new tab) |
Checked on October 5, 2026.
Income tax withholding
| Item | Value | Effective | Source |
|---|---|---|---|
| Agency | Michigan Department of Treasury (opens in a new tab) | Michigan Department of Treasury, Withholding Tax (opens in a new tab) | |
| Withholding rates | 4.25% flat | Michigan Treasury, Withholding Tax Information by Calendar Year (opens in a new tab) | |
| Supplemental wages | Same as regular wages | Michigan Treasury, Form 446, 2026 Michigan Income Tax Withholding Guide (Rev. 02-26, PDF) (opens in a new tab) | |
| Reciprocity | Illinois: MI-W4 (line 8b)Indiana: MI-W4 (line 8b)Kentucky: MI-W4 (line 8b)Minnesota: MI-W4 (line 8b)Ohio: MI-W4 (line 8b)Wisconsin: MI-W4 (line 8b) | Michigan Treasury, Form 446, 2026 Michigan Income Tax Withholding Guide (Rev. 02-26, PDF) (opens in a new tab) | |
| Employee's withholding form | Form MI-W4 | Michigan Treasury, Form 446, 2026 Michigan Income Tax Withholding Guide (Rev. 02-26, PDF) (opens in a new tab) | |
| Local income taxes | Yes | Michigan Treasury, Which cities impose an income tax? (opens in a new tab) |
Checked on October 5, 2026.
Minimum wage
| Item | Value | Effective | Source |
|---|---|---|---|
| Minimum wage | $13.73 | Michigan LEO Wage and Hour, Minimum Wage & Overtime (opens in a new tab) | |
| Next change | $15.00 | Michigan LEO Wage and Hour, Minimum Wage & Overtime (opens in a new tab) | |
| Tipped employees, cash wage | $5.49 | Michigan LEO Wage and Hour, Minimum Wage and Overtime FAQ (opens in a new tab) | |
| Rises with inflation | Yes | Michigan Compiled Laws 408.934 (Improved Workforce Opportunity Wage Act, Sec. 4) (opens in a new tab) | |
| Local rates | No local minimum wages: local governments may not require employers to pay more than the state minimum wage (Local Government Labor Regulatory Limitation Act, PA 105 of 2015). | Michigan Compiled Laws 123.1385 (Local Government Labor Regulatory Limitation Act, Sec. 5) (opens in a new tab) |
Checked on October 5, 2026.
Paid family and medical leave
| Item | Value | Effective | Source |
|---|---|---|---|
| State program | None | Michigan LEO, Wage and Hour Division (opens in a new tab) |
Checked on October 5, 2026.
Workers' compensation
| Item | Value | Effective | Source |
|---|---|---|---|
| Required | From 3 employees, or 1 or more employees working 35 or more hours a week for 13 weeks or longer in the preceding 52 weeks | Michigan Workers' Disability Compensation Agency, Employer Insurance Requirements (WC-PUB-002, April 2026, PDF) (opens in a new tab) | |
| State fund | None; private insurers | Michigan Workers' Disability Compensation Agency, Employer Insurance Requirements (WC-PUB-002, April 2026, PDF) (opens in a new tab) |
Checked on October 5, 2026.
What a paycheck costs the employer in Michigan
Employer taxes and contributions on one employee's pay in Michigan, per check and for the year, at the rates a new employer pays. State rates are the ones on this page; federal rates are the ones on the federal payroll tax rates page.
Pay$
Pay frequency
Construction employerUses the construction new employer rate
- Employer taxes and contributions per check
- $252.70
- First check of the year
- Cost per check
- $2,560.39
- Pay included, first check
- Cost per year
- $64,875.00
- Pay included
Later checks cost less once pay passes a wage base: the year's last check costs $2,484.23, pay included.
| Item | Rate | First check | Per year | Source |
|---|---|---|---|---|
| Social Security, employer share | 6.2% on the first $184,500 | $143.08 | $3,720.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Medicare, employer share | 1.45% of all pay | $33.46 | $870.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Federal unemployment (FUTA) | 0.6% on the first $7,000After the full 5.4% credit. Employers in a credit reduction state pay more. | $13.85None after check 4 | $42.00 | IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab) |
| Michigan unemployment | 2.7% on the first $9,0002.7% for the first two years of liability; construction employers pay the average construction-industry rate instead (5.0% for 2026) | $62.31None after check 4 | $243.00 | Michigan UIA, Unemployment Insurance Taxes (Tax Rate Summary for 2026) (opens in a new tab); Michigan UIA, FAQ: Taxable Wage Base (opens in a new tab) |
| Employer taxes and contributions | $252.70 | $4,875.00 | ||
| Pay | $2,307.69 | $60,000.00 | ||
| Pay plus employer costs | $2,560.39 | $64,875.00 |
Checked on October 5, 2026. Shows one employee's pay for a full calendar year, every check at the rates in force on October 12, 2026, with all pay subject to these taxes, the new employer rates and the full employer shares the law sets. An employer may choose to pay an employee's share too. Benefits and other costs are not included.
Common questions
A new employer pays 2.7% for the first two years of liability; construction employers pay the average construction-industry rate instead (5.0% for 2026). The tax applies to the first $9,000 of each employee's wages a year.
Yes: 4.25% flat. Supplemental wages: same as regular wages.
$13.73 an hour. It rises to $15.00 on January 1, 2027.
No. Michigan has no state paid family or medical leave program funded through payroll.
WORKLIO HCM
Payroll taxes calculated, deposited and filed in every state
Worklio HCM calculates, deposits and files payroll taxes in every state and locality, city, county and school district taxes included, and rates and rules update without you noticing. We help open state accounts when you hire somewhere new. Payroll and HCM for companies with 50 to 50,000+ employees.
Rates in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
The agency page or document behind each figure, as checked.
- Michigan LEO, UIA Resources for Employers (opens in a new tab)
- Michigan UIA, FAQ: Taxable Wage Base (opens in a new tab)
- Michigan Compiled Laws 421.44(4) (opens in a new tab)
- Michigan UIA, Unemployment Insurance Taxes (Tax Rate Summary for 2026) (opens in a new tab)
- Michigan UIA, Michigan Employer Liability Toolkit (4/2026, PDF) (opens in a new tab)
- Michigan UIA, FAQ: Tax Rates and Liability (opens in a new tab)
- US DOL OUI, FUTA Credit Reductions (opens in a new tab)
- Michigan Department of Treasury, Withholding Tax (opens in a new tab)
- Michigan Treasury, Form 446, 2026 Michigan Income Tax Withholding Guide (Rev. 02-26, PDF) (opens in a new tab)
- Michigan Treasury, Withholding Tax Information by Calendar Year (opens in a new tab)
- Michigan Treasury, Which cities impose an income tax? (opens in a new tab)
- Michigan LEO Wage and Hour, Minimum Wage & Overtime (opens in a new tab)
- Michigan LEO Wage and Hour, Minimum Wage and Overtime FAQ (opens in a new tab)
- Michigan Compiled Laws 408.934 (Improved Workforce Opportunity Wage Act, Sec. 4) (opens in a new tab)
- Michigan Compiled Laws 123.1385 (Local Government Labor Regulatory Limitation Act, Sec. 5) (opens in a new tab)
- Michigan LEO, Wage and Hour Division (opens in a new tab)
- Michigan Workers' Disability Compensation Agency, Employer Insurance Requirements (WC-PUB-002, April 2026, PDF) (opens in a new tab)
- IRS, Publication 15 (2026), Employer's Tax Guide (opens in a new tab)
General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes.