Detroit, MI variant. This is a Detroit, MI-specific version of the Income Tax Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Income Tax Calculator.
Income tax in Detroit combines federal, MI state, and a 2.4% city income tax.
Layers of income tax in Detroit
Detroit is among the cities that add a local income tax - 2.4% here - on top of MI state and federal tax. That makes Detroit one of the higher total-tax jurisdictions in the country.
Combine all layers to find your true marginal rate on the next dollar earned.
About Detroit, MI
Detroit imposes a city income tax on residents and on people who work in the city, in addition to Michigan state income tax.
Detroit has some of the most affordable home prices among major US cities, reflecting decades of population decline and ongoing revitalization.
Detroit's economy remains closely tied to the automotive industry, with growing diversification into technology and services.
Worked example: local tax on $39,575
Detroit's 2.4% city tax on $39,575 ≈ $950, before MI state and federal tax.
Quick reference
- Median home value: $80,000
- Median rent: $1,100/mo
- Median household income: $39,575
- Local sales tax: 6%
- City income tax: 2.4%
- Effective property tax rate: 1.94%
- Cost of living index: 80 (US avg = 100)
Frequently Asked Questions
Does Detroit have a local income tax?
Yes - 2.4%, on top of MI state and federal tax.
What taxes apply to Detroit residents?
Federal, MI state, and a 2.4% city income tax.