Taxes in Dearborn, Michigan
Complete tax guide for Dearborn, MI. State income tax up to 4.25%, 1.54% property tax, 6.18% sales tax. Calculate your total tax burden.
State Income Tax
4.25%
Michigan
Property Tax
1.54%
Effective rate
Sales Tax
6.18%
Combined rate
Tax Burden
Moderate
Dearborn, MI Tax Overview
Population
109,976
Median Income
$52,000
Cost of Living
90.5 (100 = avg)
State Income Tax
4.25%
Local Income Tax
2.02%
Median Home Price
$185,000
Dearborn Tax Calculator
Pre-filled with Dearborn median: $52,000
Total Tax Burden in Dearborn
$11,440
Take-Home: $40,560 · Effective Rate: 22.00%
Federal Tax
$4,202
8.08% eff.
MI State + Local
$3,260
6.27% eff.
FICA
$3,978
7.65% eff.
Take-Home
$40,560
78.00% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $52,000.00 | $4,333.33 |
| Federal Income Tax | -$4,201.50 | -$350.13 |
| Michigan State Tax | -$2,210.00 | -$184.17 |
| Dearborn Local Tax (2.02%) | -$1,050.40 | -$87.53 |
| Social Security (6.2%) | -$3,224.00 | -$268.67 |
| Medicare (1.45%) | -$754.00 | -$62.83 |
| Take-Home Pay | $40,560.10 | $3,380.01 |
Property Tax in Dearborn
Median Home
$185,000
Annual Tax
$2,849
Monthly Tax
$237
Effective Rate
1.54%
Sales Tax in Dearborn
Combined Rate
6.18%
State Portion
~3.7%
Local Portion
~2.5%
The combined sales tax rate in Dearborn is 6.18%, which is below the national average of 7.12%. On a $100 purchase, you would pay $6.18 in sales tax.
Tax Burden Comparison
| Tax Type | Dearborn | Michigan Avg | National Avg |
|---|---|---|---|
| Income Tax | 4.25% + 2.02% | 4.25% | 4.6% |
| Property Tax | 1.54% | ~1.54% | 1.1% |
| Sales Tax | 6.18% | ~6.18% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Dearborn Residents
- Michigan's income tax rate of 4.25% is competitive. You may still benefit from maximizing 401(k) contributions ($23,500 limit) to reduce your taxable income at both state and federal levels.
- Dearborn has a local income tax of 2.02%. If you work remotely, verify whether you owe city tax based on where you work or where you live. Some cities only tax people who work within city limits.
- Property tax in Dearborn (1.54%) is above the national average. Check if you qualify for homestead exemptions or assessment appeals to reduce your property tax bill.
- Use a Health Savings Account (HSA) if eligible. Contributions are tax-deductible ($4,300 individual, $8,550 family), growth is tax-free, and withdrawals for medical expenses are tax-free.
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Very LowCalculate Your Full Michigan Tax Burden
See detailed state tax brackets, FICA breakdown, and compare to neighboring states.
Frequently Asked Questions
What are the tax rates in Dearborn, MI?
Dearborn, Michigan has a state income tax rate up to 4.25%, plus a local income tax of 2.02%. The property tax rate is 1.54% and the combined sales tax rate is 6.18%.
How much is property tax in Dearborn?
The effective property tax rate in Dearborn is 1.54%. On the median home price of $185,000, this equals approximately $2,849 per year or $237 per month. This is above the national average of 1.1%.
What is the sales tax rate in Dearborn?
The combined sales tax rate in Dearborn is 6.18%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Dearborn's tax burden compare to other cities?
Dearborn has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 28.8%. The combination of 4.25% state income tax, 1.54% property tax, and 6.18% sales tax determines the total burden. Cost of living index is 90.5 (100 = national average).
Are there any local taxes in Dearborn?
Yes. Dearborn imposes a local income tax of 2.02% in addition to the state income tax of 4.25%.