Taxes in Farmington Hills, Michigan
Complete tax guide for Farmington Hills, MI. State income tax up to 4.25%, 1.59% property tax, 7.6% sales tax. Calculate your total tax burden.
State Income Tax
4.25%
Michigan
Property Tax
1.59%
Effective rate
Sales Tax
7.6%
Combined rate
Tax Burden
High
Farmington Hills, MI Tax Overview
Population
82,111
Median Income
$54,900
Cost of Living
82.9 (100 = avg)
State Income Tax
4.25%
Local Income Tax
2.69%
Median Home Price
$241,000
Farmington Hills Tax Calculator
Pre-filled with Farmington Hills median: $54,900
Total Tax Burden in Farmington Hills
$12,559
Take-Home: $42,341 · Effective Rate: 22.88%
Federal Tax
$4,550
8.29% eff.
MI State + Local
$3,810
6.94% eff.
FICA
$4,200
7.65% eff.
Take-Home
$42,341
77.12% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $54,900.00 | $4,575.00 |
| Federal Income Tax | -$4,549.50 | -$379.13 |
| Michigan State Tax | -$2,333.25 | -$194.44 |
| Farmington Hills Local Tax (2.69%) | -$1,476.81 | -$123.07 |
| Social Security (6.2%) | -$3,403.80 | -$283.65 |
| Medicare (1.45%) | -$796.05 | -$66.34 |
| Take-Home Pay | $42,340.59 | $3,528.38 |
Property Tax in Farmington Hills
Median Home
$241,000
Annual Tax
$3,832
Monthly Tax
$319
Effective Rate
1.59%
Sales Tax in Farmington Hills
Combined Rate
7.6%
State Portion
~5.1%
Local Portion
~2.5%
The combined sales tax rate in Farmington Hills is 7.6%, which is above the national average of 7.12%. On a $100 purchase, you would pay $7.60 in sales tax.
Tax Burden Comparison
| Tax Type | Farmington Hills | Michigan Avg | National Avg |
|---|---|---|---|
| Income Tax | 4.25% + 2.69% | 4.25% | 4.6% |
| Property Tax | 1.59% | ~1.59% | 1.1% |
| Sales Tax | 7.6% | ~7.6% | 7.12% |
| Overall Burden | High | — | Moderate |
Tax Saving Tips for Farmington Hills 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.
- Farmington Hills has a local income tax of 2.69%. 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 Farmington Hills (1.59%) 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
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ModerateAnn Arbor
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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 Farmington Hills, MI?
Farmington Hills, Michigan has a state income tax rate up to 4.25%, plus a local income tax of 2.69%. The property tax rate is 1.59% and the combined sales tax rate is 7.6%.
How much is property tax in Farmington Hills?
The effective property tax rate in Farmington Hills is 1.59%. On the median home price of $241,000, this equals approximately $3,832 per year or $319 per month. This is above the national average of 1.1%.
What is the sales tax rate in Farmington Hills?
The combined sales tax rate in Farmington Hills is 7.6%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Farmington Hills's tax burden compare to other cities?
Farmington Hills has a high overall tax burden. The effective total tax rate for a median-income household is approximately 31.4%. The combination of 4.25% state income tax, 1.59% property tax, and 7.6% sales tax determines the total burden. Cost of living index is 82.9 (100 = national average).
Are there any local taxes in Farmington Hills?
Yes. Farmington Hills imposes a local income tax of 2.69% in addition to the state income tax of 4.25%.