Taxes in Waterford Township, Michigan
Complete tax guide for Waterford Township, MI. State income tax up to 4.25%, 1.57% property tax, 7.45% sales tax. Calculate your total tax burden.
State Income Tax
4.25%
Michigan
Property Tax
1.57%
Effective rate
Sales Tax
7.45%
Combined rate
Tax Burden
High
Waterford Township, MI Tax Overview
Population
73,813
Median Income
$51,800
Cost of Living
86 (100 = avg)
State Income Tax
4.25%
Local Income Tax
3%
Median Home Price
$220,000
Waterford Township Tax Calculator
Pre-filled with Waterford Township median: $51,800
Total Tax Burden in Waterford Township
$11,896
Take-Home: $39,904 · Effective Rate: 22.96%
Federal Tax
$4,178
8.06% eff.
MI State + Local
$3,756
7.25% eff.
FICA
$3,963
7.65% eff.
Take-Home
$39,904
77.04% kept
Tax Breakdown
| Item | Annual | Monthly |
|---|---|---|
| Gross Income | $51,800.00 | $4,316.67 |
| Federal Income Tax | -$4,177.50 | -$348.13 |
| Michigan State Tax | -$2,201.50 | -$183.46 |
| Waterford Township Local Tax (3%) | -$1,554.00 | -$129.50 |
| Social Security (6.2%) | -$3,211.60 | -$267.63 |
| Medicare (1.45%) | -$751.10 | -$62.59 |
| Take-Home Pay | $39,904.30 | $3,325.36 |
Property Tax in Waterford Township
Median Home
$220,000
Annual Tax
$3,454
Monthly Tax
$288
Effective Rate
1.57%
Sales Tax in Waterford Township
Combined Rate
7.45%
State Portion
~5.0%
Local Portion
~2.5%
The combined sales tax rate in Waterford Township is 7.45%, which is above the national average of 7.12%. On a $100 purchase, you would pay $7.45 in sales tax.
Tax Burden Comparison
| Tax Type | Waterford Township | Michigan Avg | National Avg |
|---|---|---|---|
| Income Tax | 4.25% + 3% | 4.25% | 4.6% |
| Property Tax | 1.57% | ~1.57% | 1.1% |
| Sales Tax | 7.45% | ~7.45% | 7.12% |
| Overall Burden | High | — | Moderate |
Tax Saving Tips for Waterford Township 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.
- Waterford Township has a local income tax of 3%. 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 Waterford Township (1.57%) 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 Waterford Township, MI?
Waterford Township, Michigan has a state income tax rate up to 4.25%, plus a local income tax of 3%. The property tax rate is 1.57% and the combined sales tax rate is 7.45%.
How much is property tax in Waterford Township?
The effective property tax rate in Waterford Township is 1.57%. On the median home price of $220,000, this equals approximately $3,454 per year or $288 per month. This is above the national average of 1.1%.
What is the sales tax rate in Waterford Township?
The combined sales tax rate in Waterford Township is 7.45%, which includes both state and local components. This is above the national average combined rate of approximately 7.12%.
How does Waterford Township's tax burden compare to other cities?
Waterford Township 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, 1.57% property tax, and 7.45% sales tax determines the total burden. Cost of living index is 86 (100 = national average).
Are there any local taxes in Waterford Township?
Yes. Waterford Township imposes a local income tax of 3% in addition to the state income tax of 4.25%.