What it costs to live and work in Michigan: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for your monthly budget.
| Michigan | Source | |
|---|---|---|
| Minimum wage | $13.73 an hour | US Department of Labor, State Minimum Wage Laws (updated July 1, 2026) |
| State income tax | 4.25 % flat | Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 |
| State sales tax | 6 % | Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (as of July 1, 2026) |
| Median gross rent | $1,168 a month (2024) | US Census Bureau, ACS 2024 1-year estimates, table B25064 Median Gross Rent |
Michigan's minimum wage is $13.73 an hour in 2026 and is scheduled to rise to $15.00 on January 1, 2027.
Michigan taxes income at a flat 4.25 %.
The state sales tax is 6 %, with no local sales taxes.
What income does rent in Michigan take?
A common rule of thumb is to keep rent at or below 30 % of gross income. At the median rent of $1,168 a month, that means a household income of about $46,700 a year before tax.
Good to know
- Some Michigan cities charge their own income tax on top of the state rate; the Tax Foundation puts the statewide average at 0.16 % of AGI.
Sources
- US Department of Labor, State Minimum Wage Laws (updated July 1, 2026) (2026-07-01)
- Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (2026-02-19)
- Tax Foundation, State and Local Sales Tax Rates, Midyear 2026 (as of July 1, 2026) (2026-07-06)
- US Census Bureau, ACS 2024 1-year estimates, table B25064 Median Gross Rent (2025-09)