Taxes in Madison Heights, Michigan
Complete tax guide for Madison Heights, MI. State income tax up to 4.25%, 1.65% property tax, 7.35% sales tax. Calculate your total tax burden.
State Income Tax
4.25%
Michigan
Property Tax
1.65%
Effective rate
Sales Tax
7.35%
Combined rate
Tax Burden
Moderate
Madison Heights, MI Tax Overview
Population
30,438
Median Income
$54,700
Cost of Living
80 (100 = avg)
State Income Tax
4.25%
Local Income Tax
2.08%
Median Home Price
$200,000
Madison Heights Tax Calculator
Pre-filled with Madison Heights median: $54,700
Total Tax Burden in Madison Heights
$12,173
Take-Home: $42,527 · Effective Rate: 22.25%
Federal Tax
$4,526
8.27% eff.
MI State + Local
$3,463
6.33% eff.
FICA
$4,185
7.65% eff.
Take-Home
$42,527
77.75% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $54,700.00 | $4,558.33 |
| Federal Income Tax | -$4,525.50 | -$377.13 |
| Michigan State Tax | -$2,324.75 | -$193.73 |
| Madison Heights Local Tax (2.08%) | -$1,137.76 | -$94.81 |
| Social Security (6.2%) | -$3,391.40 | -$282.62 |
| Medicare (1.45%) | -$793.15 | -$66.10 |
| Take-Home Pay | $42,527.44 | $3,543.95 |
Property Tax in Madison Heights
Median Home
$200,000
Annual Tax
$3,300
Monthly Tax
$275
Effective Rate
1.65%
Sales Tax in Madison Heights
Combined Rate
7.35%
State Portion
~4.8%
Local Portion
~2.5%
The combined sales tax rate in Madison Heights is 7.35%, which is above the national average of 7.12%. On a $100 purchase, you would pay $7.35 in sales tax.
Tax Burden Comparison
| Tax Type | Madison Heights | Michigan Avg | National Avg |
|---|---|---|---|
| Income Tax | 4.25% + 2.08% | 4.25% | 4.6% |
| Property Tax | 1.65% | ~1.65% | 1.1% |
| Sales Tax | 7.35% | ~7.35% | 7.12% |
| Overall Burden | Moderate | — | Moderate |
Tax Saving Tips for Madison Heights 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.
- Madison Heights has a local income tax of 2.08%. 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 Madison Heights (1.65%) 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
Detroit
LowGrand 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 Madison Heights, MI?
Madison Heights, Michigan has a state income tax rate up to 4.25%, plus a local income tax of 2.08%. The property tax rate is 1.65% and the combined sales tax rate is 7.35%.
How much is property tax in Madison Heights?
The effective property tax rate in Madison Heights is 1.65%. On the median home price of $200,000, this equals approximately $3,300 per year or $275 per month. This is above the national average of 1.1%.
What is the sales tax rate in Madison Heights?
The combined sales tax rate in Madison Heights is 7.35%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Madison Heights's tax burden compare to other cities?
Madison Heights has a moderate overall tax burden. The effective total tax rate for a median-income household is approximately 29.8%. The combination of 4.25% state income tax, 1.65% property tax, and 7.35% sales tax determines the total burden. Cost of living index is 80 (100 = national average).
Are there any local taxes in Madison Heights?
Yes. Madison Heights imposes a local income tax of 2.08% in addition to the state income tax of 4.25%.