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.

Reviewed data sources

Reviewed May 27, 2026. Calculations use current public tax guidance and published source data.

Methodology

IRS forms and instructionsFederal income tax and filing context Michigan Department of TreasuryMichigan official tax authority Michigan tax formsState income-tax forms and instructions Census ACSMedian household and housing context

1. Enter the tax scenario

Use the filing status, income type, state, payroll, deduction, credit, or transaction details that match the real case.

2. Review assumptions

Check the visible formula context, source notes, related calculators, and federal or state limits before relying on the estimate.

3. Verify before filing

Confirm final tax positions with IRS guidance, state revenue agencies, payroll records, brokerage forms, or a qualified tax professional.

Answer first

Taxes in Detroit, MI: income, FICA, property, and sales tax

For wage-income planning, this page estimates federal income tax, Michigan state income tax, Detroit local income tax, and FICA. It also shows property-tax and sales-tax estimates because local household tax burden depends on address-level property assessments, sales-tax districts, exemptions, and item categories.

Michigan income taxUse for state brackets and official state links Other MI citiesCompare city tax burden within the state Paycheck withholdingUse for per-paycheck cash-flow estimates

State Income Tax

4.25%

Michigan

Property Tax

1.48%

Effective rate

Sales Tax

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

Annual Income ($)

Pre-filled with Detroit median: $34,762

Filing Status

Total Tax Burden in Detroit

$6,962

Take-Home: $27,800 · Effective Rate: 20.03%

Federal Tax

$1,991

5.73% eff.

MI State + Local

$2,312

6.65% eff.

FICA

$2,659

7.65% eff.

Take-Home

$27,800

79.97% kept

Tax Breakdown

Take-Home 79.97%

FICA

Take-Home Federal Tax MI State + Local Tax FICA

Item	Annual	Monthly
Gross Income	$34,762.00	$2,896.83
Federal Income Tax	-$1,991.44	-$165.95
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	$27,799.59	$2,316.63

Property Tax in Detroit

Median Home

$65,000

Annual Tax

$962

Monthly Tax

$80

Effective Rate

1.48%

vs. National Average (1.1%)+$247/yr

Median Property Tax Paid$962/yr

Sales Tax in Detroit

Combined Rate

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.

Sales and use tax can vary by exact address, district, item category, exemptions, and effective date. Treat this city rate as a planning estimate and verify large purchases with the official state sales-tax lookup or local tax authority.

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

About Taxes in Detroit

Detroit has a population of approximately 639,111 residents with a median household income of $34,762. The cost of living index is 78.5 (21.5% lower than the national average of 100).

Local context: Detroit city income tax: 2.4% residents, 1.2% non-residents; lowest median home prices of any major city

Tax burden classification: Low. Effective combined tax rate of 24.7% includes federal, state, FICA, property, and sales taxes for a typical Detroit household.

Official Tax Resources for Michigan

For authoritative Michigan tax forms, filing deadlines, and the latest legislative updates, consult these official government resources:

Michigan Department of Treasury — official state revenue agency
Michigan Individual Income Tax Forms — current tax year forms and instructions
IRS Federal Tax Forms and Instructions — federal income tax filing

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 ($24,500 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 ($4,400 individual, $8,750 family), growth is tax-free, and withdrawals for medical expenses are tax-free.

Find Your Local Tax Authority in Detroit

The 1.48% property tax rate shown above is a city-profile effective estimate. Your actual Detroit property tax bill is set by your county assessor and may include additional levies from your school district, municipal utility district (MUD), or special assessment district. Use these official lookup tools to confirm exact rates for your specific address:

🏛️ County Tax Assessor

Look up the county your Detroit address belongs to and find your assessor's office:

• NACo County Explorer — search by address
• USA.gov — Michigan local govt directory

🎓 School District (millage)

School districts add their own millage rate to property tax:

• NCES District Locator — federal database
• NCES School Locator (EDGE)

💧 MUD / Special Districts

Municipal Utility Districts and special assessment districts are common in fast-growing Michigan suburbs:

• Census — Census of Governments
• Check your tax bill for line items beyond county + school district

📋 Property Tax Appeal

Disagree with your assessment? You can appeal:

• Property Tax Appeal Guide
• Most counties allow 30-60 days post-assessment to file appeal

Why this matters: Two homes valued the same in Detroit can pay different property tax depending on which school district + MUD they fall within. Always verify with your specific address — the address-level rate may be 10-30% higher than the city average shown here.

Other Cities in Michigan

Sources & Methodology

Tax rate data on this page is compiled from official government sources and updated for the 2026 tax year. Calculations follow the IRS-published 2026 federal tax brackets, FICA rates (6.2% Social Security up to $184,500 wage base, 1.45% Medicare), and Michigan state tax provisions. Property tax estimates use Detroit's median home value of $65,000and the local effective property tax rate of 1.48%.

• Federal tax brackets and standard deductions: IRS.gov
• State income tax rates and brackets: Michigan Department of Treasury
• Median household income, home value, and demographics: U.S. Census Bureau ACS
• Cost of living comparisons: U.S. Bureau of Labor Statistics CES
• National average benchmarks: Tax Foundation state-level tax burden studies

Disclaimer: Estimates are for informational purposes only. Actual tax liability depends on filing status, deductions, credits, and individual circumstances. Consult a licensed tax professional or your state revenue agency for binding tax guidance.

Reviewed by LevyIO Tax Research Team · Published 2026-01-15 · Last updated 2026-05-27

Calculate Your Full Michigan Tax Burden

See detailed state tax brackets, FICA breakdown, and compare to neighboring states.

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Planning estimate, not tax advice

LevyIO calculators are educational planning tools. Actual federal, state, payroll, property, sales, and local tax results can change with filing status, credits, deductions, residency, employer withholding, address-level rates, and current forms. Verify final filing positions with IRS or state guidance, payroll records, tax software, or a qualified tax professional.

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