Detroit Local Income Tax: What It Means for Your Paycheck (2026)
Calculator scope: ExactTakeHome currently calculates federal and Michigan state income tax. Local income taxes are not included in the calculator.
What is Detroit's Local Income Tax?
Detroit levies a city income tax on earned wages at 2.4% for residents. Non-residents who work in Detroit pay a 1.2% city income tax on Detroit wages. Flat rate for Detroit residents on wages, salaries, and other compensation. According to City of Detroit Treasury, 2026, the Detroit city income tax rate for residents is 2.4% as of 2026.
How Much Does Detroit's Local Tax Cost?
| Annual Salary | Estimated Local Tax (2.4%) | Monthly Local Tax |
|---|---|---|
| $40,000 | $960 | $80 |
| $60,000 | $1,440 | $120 |
| $75,000 | $1,800 | $150 |
| $100,000 | $2,400 | $200 |
| $150,000 | $3,600 | $300 |
These are estimates of the local tax component only. Your total paycheck deductions also include federal income tax, Social Security, Medicare, and Michigan state income tax.
Calculate Your Federal and State Taxes
ExactTakeHome currently calculates federal and Michigan state income tax for Detroit residents. To estimate your take-home pay excluding local tax, use the Michigan calculator and add the local tax amount from the table above for a full planning estimate.
Does Detroit's Local Tax Apply to Remote Workers?
Detroit residents generally owe the resident city income tax on wages regardless of where they work. Non-residents who perform work in Detroit owe tax on Detroit-source wages. Remote-work sourcing rules may vary — verify with the City of Detroit Treasury.
Frequently Asked Questions
2.4% city income tax for residents. Source: City of Detroit Treasury, 2026.
Residents of Detroit owe the 2.4% resident rate on wages. Non-residents who work in Detroit pay a 1.2% city income tax on Detroit wages.
An estimated $1,800 per year ($150 per month) at the 2.4% rate. This is an estimate of the local component only.
No. ExactTakeHome currently calculates federal and Michigan state income tax. Local income taxes are not included in the calculator.
Use the Michigan calculator on ExactTakeHome for federal and state withholding, then subtract the estimated local tax from the table on this page for a planning estimate.