Michigan has a flat state income tax, plus city income taxes in two dozen cities, including Detroit. Here is what a Michigan freelancer owes in 2026.
What you pay on freelance profit
| Tax | Rate |
|---|---|
| Federal self-employment tax | 15.3% on 92.35% of profit |
| Federal income tax | 10%–37% |
| Michigan income tax | Flat 4.25% for 2026 |
| City income tax | In 24 cities — e.g. Detroit 2.4% for residents |
The 4.25% state rate
Michigan’s rate stays at 4.25% for 2026; the Treasury announced in April 2026 that the formula that can temporarily lower it was not triggered this year. The 2026 personal exemption is $5,900.
City income taxes
Twenty-four Michigan cities tax income: Albion, Battle Creek, Benton Harbor, Big Rapids, Detroit, East Lansing, Flint, Grand Rapids, Grayling, Hamtramck, Highland Park, Hudson, Ionia, Jackson, Lansing, Lapeer, Muskegon, Muskegon Heights, Pontiac, Port Huron, Portland, Saginaw, Springfield and Walker.
- Detroit: 2.4% for residents and 1.2% for non-residents. Residents pay on all income, including net business profit; non-residents pay only on profit earned in Detroit. The state administers Detroit’s tax.
- Flint: 1% for residents and 0.5% for non-residents; the state takes over processing from tax year 2026.
- Most other cities run their own income tax offices. Check your city’s rate and forms.
Estimated payments
Michigan estimated payments use Form MI-1040ES, due April 15, June 15 and September 15, 2026, and January 15, 2027. As with the IRS, a 110% prior-year safe harbor applies if last year’s AGI was over $150,000. Size the federal part with the quarterly estimated tax calculator.
How much to set aside
Enter 4.25 in the state field of the tax set-aside calculator — or 4.25 plus your city rate (6.65 in Detroit) if you live in one of the taxing cities.