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Michigan: minimum wage, income tax and cost of living

Michigan in numbers: the minimum wage, state income tax, sales tax and median rent, from official sources, and what they mean for a budget.

Updated: October 11, 2026

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.

MichiganSource
Minimum wage$13.73 an hourUS Department of Labor, State Minimum Wage Laws (updated July 1, 2026)
State income tax4.25 % flatTax Foundation, State Individual Income Tax Rates and Brackets, 2026
State sales tax6 %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.

Work out your take-home pay

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

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