Michigan Releases 2026 Withholding Guide

Jan. 5, 2026, 6:17 PM UTC

Michigan’s 2026 withholding guide includes an increased state allowance value, the state treasury department said.

The value of a state allowance for 2026 increased to $5,900 from $5,800, the department said in the 2026 withholding guide.

The withholding guide indicated that the state’s flat tax rate remains unchanged at 4.25%. Under state law, the income tax rate in effect may decrease for a given year if the state determines that general fund revenue from the previous fiscal year increased by more than the rate of inflation, but this determination is made after the start of the year.

In 2026, ...

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