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Calculating your paycheck…
Tax Breakdown
Deduction Breakdown
How Your Michigan Paycheck Is Calculated
Understanding how your take-home pay is figured out can help you plan better financially. Here’s a clear breakdown of the main factors involved.
Federal Income Tax
The IRS calculates federal withholding based on your W‑4 information, filing status, income, and pay frequency.
IRS Publication 15-T (2025) – Official federal tax withholding tables and instructions.
Michigan State Income Tax
Michigan applies a flat income tax rate of 4.25% in 2025. A standard personal exemption of $5,800 is also factored in to reduce taxable income.
Michigan Department of Treasury – Individual Income Tax
Social Security and Medicare Taxes (FICA)
You pay 6.2% for Social Security on wages up to $176,100 and 1.45% for Medicare on all earnings. These are fixed federal rates applied to most working individuals.
Social Security Administration – 2025 Tax Limits
What Else Impacts Your Take‑Home Pay
Pre-Tax Deductions
These reduce your taxable income and may include:
- Health, dental, or vision insurance premiums
- Retirement plan contributions like a 401(k)
- HSA or FSA contributions
Local City Taxes
Some cities in Michigan, like Detroit, impose local income taxes. These are applied on top of state and federal taxes and vary by city and residency status.
Pay Frequency
Your paycheck size changes depending on whether you’re paid weekly, bi-weekly, or monthly, though the overall taxes for the year remain the same.
Disclaimer
This calculator is a helpful tool for estimates only. For precise tax or paycheck information, consult a professional or refer to official federal and state sources.