What is the Detroit city income tax rate?

Detroit residents pay 2.4% on taxable income. Non-residents who work in Detroit pay a reduced rate of 1.2% on income earned within the city. Both are separate from Michigan's 4.25% state tax and from federal tax.

Who has to pay Detroit city income tax?

Anyone who lives in Detroit pays the resident rate on all taxable income. Anyone who works in Detroit but lives elsewhere pays the non-resident rate on income earned in the city. Both are typically withheld from pay.

What is the per-exemption deduction?

Detroit allows a $600 deduction for each personal exemption you claim, including yourself and dependents. The tool subtracts $600 times your exemptions from income before applying the rate, reducing your tax.

Is this on top of Michigan and federal tax?

Yes. Detroit city income tax is a third, separate layer. You still owe Michigan's flat 4.25% state income tax and your federal income tax. This tool calculates only the Detroit city portion.

Does the calculator handle part-year residency?

No. It assumes you are a resident or non-resident for the full year. Part-year residents must prorate income between resident and non-resident periods, which is not modeled here.

Detroit City Income Tax Calculator

This calculator works out the Detroit city income tax, a separate layer that sits on top of your Michigan state and federal income tax. Detroit residents and non-residents who work in the city pay different rates, and a per-exemption deduction lowers the taxable base.

How it works

The tool subtracts a $600 deduction for each exemption, then applies the rate that matches your status:

taxable     = max(income - 600 * exemptions, 0)
rate        = resident ? 0.024 : 0.012
detroit_tax = taxable * rate

Residents pay 2.4% on all taxable income; non-residents pay 1.2% on income earned in the city.

Example

A Detroit resident earning $50,000 with two exemptions has a taxable base of 50,000 - 1,200 = $48,800. At 2.4% the Detroit tax is 48,800 * 0.024 = $1,171.20 for the year.

Notes

This covers the Detroit city portion only — Michigan’s 4.25% state tax and federal tax are owed separately. The estimate assumes full-year residency status and does not model credits, part-year proration, or self-employment adjustments. Confirm against Detroit Form 5118/5119/5120.