Taxes in Detroit, Michigan
Complete tax guide for Detroit, MI. State income tax up to 4.25%, 1.48% property tax, 6% sales tax. Calculate your total tax burden.
State Income Tax
4.25%
Michigan
Property Tax
1.48%
Effective rate
Sales Tax
6%
Combined rate
Tax Burden
Low
Detroit, MI Tax Overview
Detroit city income tax: 2.4% residents, 1.2% non-residents; lowest median home prices of any major city
Population
639,111
Median Income
$34,762
Cost of Living
78.5 (100 = avg)
State Income Tax
4.25%
Local Income Tax
2.4%
Median Home Price
$65,000
Detroit Tax Calculator
Pre-filled with Detroit median: $34,762
Total Tax Burden in Detroit
$7,104
Take-Home: $27,658 · Effective Rate: 20.44%
Federal Tax
$2,133
6.14% eff.
MI State + Local
$2,312
6.65% eff.
FICA
$2,659
7.65% eff.
Take-Home
$27,658
79.56% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $34,762.00 | $2,896.83 |
| Federal Income Tax | -$2,132.94 | -$177.75 |
| Michigan State Tax | -$1,477.39 | -$123.12 |
| Detroit Local Tax (2.4%) | -$834.29 | -$69.52 |
| Social Security (6.2%) | -$2,155.24 | -$179.60 |
| Medicare (1.45%) | -$504.05 | -$42.00 |
| Take-Home Pay | $27,658.09 | $2,304.84 |
Property Tax in Detroit
Median Home
$65,000
Annual Tax
$962
Monthly Tax
$80
Effective Rate
1.48%
Sales Tax in Detroit
Combined Rate
6%
State Portion
~3.5%
Local Portion
~2.5%
The combined sales tax rate in Detroit is 6%, which is below the national average of 7.12%. On a $100 purchase, you would pay $6.00 in sales tax.
Tax Burden Comparison
| Tax Type | Detroit | Michigan Avg | National Avg |
|---|---|---|---|
| Income Tax | 4.25% + 2.4% | 4.25% | 4.6% |
| Property Tax | 1.48% | ~1.48% | 1.1% |
| Sales Tax | 6% | ~6% | 7.12% |
| Overall Burden | Low | — | Moderate |
Tax Saving Tips for Detroit 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.
- Detroit has a local income tax of 2.4%. 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 Detroit (1.48%) 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.
Other Cities in Michigan
Grand Rapids
ModerateWarren
LowSterling Heights
ModerateAnn Arbor
Very HighLansing
LowFlint
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 Detroit, MI?
Detroit, Michigan has a state income tax rate up to 4.25%, plus a local income tax of 2.4%. The property tax rate is 1.48% and the combined sales tax rate is 6%. Detroit city income tax: 2.4% residents, 1.2% non-residents; lowest median home prices of any major city
How much is property tax in Detroit?
The effective property tax rate in Detroit is 1.48%. On the median home price of $65,000, this equals approximately $962 per year or $80 per month. This is above the national average of 1.1%.
What is the sales tax rate in Detroit?
The combined sales tax rate in Detroit is 6%, which includes both state and local components. This is below the national average combined rate of approximately 7.12%.
How does Detroit's tax burden compare to other cities?
Detroit has a low overall tax burden. The effective total tax rate for a median-income household is approximately 24.7%. The combination of 4.25% state income tax, 1.48% property tax, and 6% sales tax determines the total burden. Cost of living index is 78.5 (100 = national average).
Are there any local taxes in Detroit?
Yes. Detroit imposes a local income tax of 2.4% in addition to the state income tax of 4.25%. Detroit city income tax: 2.4% residents, 1.2% non-residents; lowest median home prices of any major city