Michigan Bonus Tax Calculator (2026)
Michigan withholds 4.25% state income tax on bonuses, on top of the federal 22% and 7.65% FICA.
Michigan rules for bonuses
Required flat supplemental rate. Published rates: 4.25% for bonuses and other compensation paid separately from regular payroll.
- No adjustment for exemptions ($5,900 personal exemption not applied)
Bonuses and other payments of employee compensation made separately from regular payroll payments are subject to Michigan income tax withholding. The withholding amount equals the payment amount multiplied by 4.25 percent (0.0425). Do not make any adjustment for exemptions.
Local taxes: 24 cities levy income tax (e.g., Detroit), withheld separately; rates not checked here
Take-home bonus by amount
| Bonus | Federal (22%) | FICA | State | Take-home |
|---|---|---|---|---|
| $1,000 | $220 | $77 | $43 | $661 |
| $2,500 | $550 | $191 | $106 | $1,653 |
| $5,000 | $1,100 | $383 | $213 | $3,305 |
| $10,000 | $2,200 | $765 | $425 | $6,610 |
| $20,000 | $4,400 | $1,530 | $850 | $13,220 |
| $50,000 | $11,000 | $3,825 | $2,125 | $33,050 |
Sources
Frequently asked questions
What is the bonus tax rate in Michigan?
Michigan withholds 4.25% on bonuses, on top of the federal 22% and 7.65% FICA.
How much of a $10,000 bonus do I keep in Michigan?
About $6,610 for a single filer earning $85,000: $2,200 federal, $765 Social Security and Medicare and $425 state.
Will I get some of the bonus tax back?
Possibly. The 22% federal rate is only withholding. At tax time your bonus is taxed at your bracket (22% at this salary), and Michigan's flat supplemental rate can also differ from your actual state rate.