{"place":"Michigan","kind":"state","asOf":"2026-10-07","url":"https://gigaverse.ai/local/michigan","state":{"code":"MI","name":"Michigan","slug":"michigan","incomeTax":{"type":"flat","flatRate2026":4.25,"lowestRate2026":null,"topRate2026":null,"topRateStartsSingle":null,"notes":"Treasury confirmed on April 15, 2026 that the rate stays at 4.25% for 2026 because the conditions for the automatic rate-cut trigger were not met. Twenty-four Michigan cities also levy income taxes. For example, Detroit charges 2.4% for residents and 1.2% for nonresidents.","source":"https://www.michigan.gov/treasury/news/2026/04/15/state-individual-income-tax-rate-for-2026-tax-year-determined"},"estimatedTax":{"form":"MI-1040ES","rule":"You must make estimated payments if you expect to owe more than $500 with your 2026 MI-1040, unless withholding covers 90% of 2026 tax, 100% of 2025 tax, or 110% of 2025 tax if 2025 AGI was over $150,000.","schedule":"Same dates as federal (April 15, June 15, Sept. 15, 2026, and Jan. 15, 2027). You can skip the fourth voucher by filing your 2026 return by Feb. 1, 2027.","source":"https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2025/MI-1040ES-(2026).pdf"},"minimumWage2026":{"standard":13.73,"tippedCash":5.49,"tipCreditAllowed":true,"notes":"Effective Jan. 1, 2026 for employers with 2 or more employees. The tipped cash wage is 40% of the minimum wage in 2026 and climbs to 50% by 2031. Rates rise to $15.00 (tipped cash wage $6.30) on Jan. 1, 2027. Minors may be paid 85% of the rate.","source":"https://www.michigan.gov/leo/-/media/Project/Websites/leo/Documents/WAGE-HOUR/WHD-99xx-Information-Sheets/WHD-9904-MW-optional-posting/whd9904_MW-posting-Required_single-page_-schedule-Updated-to-2202025.pdf"},"soleProprietorTaxes":[],"contractorLaws":[{"name":"IRS 20-factor test for unemployment and workers' comp (MCL 421.42 and 418.161)","summary":"Since Jan. 1, 2013, Michigan has used the IRS 20-factor common-law test (Rev. Rul. 87-41) to decide whether a worker is an employee for unemployment insurance and workers' compensation. Anyone whose employer must withhold federal income tax is presumed to be an employee.","source":"https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-421-42"}],"notes":"Michigan has no state gross receipts or franchise tax on sole proprietors. The corporate income tax applies to C corporations, and the flow-through entity tax is optional. City income taxes in 24 cities, including Detroit, Grand Rapids, Lansing, and Flint, can apply to self-employed people who live or work there."},"stateRetirementProgram":{"state":"Michigan","code":"MI","programName":null,"status":"none","employerMandate":null,"mandateMin":null,"keyDates":null,"covers1099":null,"selfEnroll":"n/a","sourceUrl":"https://cri.georgetown.edu/states","note":"No enacted state-facilitated program.","lastVerified":"2026-09-09"},"city":null,"guides":[{"audience":"consultants","url":"https://gigaverse.ai/local/michigan/consultants"},{"audience":"freelancers","url":"https://gigaverse.ai/local/michigan/freelancers"},{"audience":"content-creators","url":"https://gigaverse.ai/local/michigan/content-creators"},{"audience":"entrepreneurs","url":"https://gigaverse.ai/local/michigan/entrepreneurs"},{"audience":"gig-workers","url":"https://gigaverse.ai/local/michigan/gig-workers"},{"audience":"tipped-workers","url":"https://gigaverse.ai/local/michigan/tipped-workers"},{"audience":"tradespeople","url":"https://gigaverse.ai/local/michigan/tradespeople"}],"disclaimer":"Educational information for 2026, not tax, legal or investment advice. Sources are cited per fact."}