Michigan Bonus Tax Calculator 2026
Michigan withholds a flat 4.25% from a bonus paid separately from regular payroll, with no exemption adjustment.
Bonus check calculator
4.25%, no exemptions
Form 446, the 2026 Michigan Income Tax Withholding Guide, lists the 2026 withholding rate as 4.25% and the personal exemption as $5,900. For bonuses it is explicit: "Bonuses and other payments of employee compensation made separately from regular payroll payments are subject to Michigan income tax withholding. The withholding amount equals the payment amount multiplied by 4.25 percent (0.0425). Do not make any adjustment for exemptions." That is $212.50 on $5,000 and $637.50 on $15,000.
City income taxes
Detroit and a number of other Michigan cities levy their own income tax, which employers in those cities withhold. Form 446 covers only state tax, so enter your city rate in the local field; at a 2.4% city rate, for example, the local line on the same bonus is $120.00.
Pension payments follow the same rate
The same guide applies 4.25% to taxable pension and retirement distributions unless the retiree files a withholding certificate directing otherwise — a reminder that Michigan's withholding is designed around its single income tax rate rather than brackets.
Regular pay versus the bonus
Form 446 withholds regular wages at 4.25% "of compensation after deducting the personal and dependency exemption allowance" — $5,900 a year per exemption for 2026, or about $226.92 per biweekly paycheck. On $3,000 every two weeks with one exemption that is (3,000 − 226.92) × 4.25% = $117.86. The bonus gets no exemption deduction at all, so the full 4.25% applies to every dollar of it.
| Rule | 4.25% of a separately paid bonus, no exemptions |
|---|---|
| Valid through | December 31, 2026 |
| Documents | Form 446, 2026 Michigan Income Tax Withholding Guide (2026) |
| Agency | Michigan Department of Treasury |
| Federal income tax | −$1,100.00 |
| Social Security | −$310.00 |
| Medicare | −$72.50 |
| Michigan income tax | −$212.50 |
| Net | $3,305.00 |