How Michigan taxes bonuses
Michigan withholds a flat 4.25% state income tax on bonuses, on top of the federal 22%.
Federal withholding is the same in every state. Most employers take a flat 22% of the bonus (37% on supplemental pay over $1,000,000 in a year). Social Security takes 6.2% up to the yearly wage base and Medicare 1.45%. If your employer adds the bonus to a regular $2,500 paycheck instead, the aggregate method withholds about $1,150.54 of federal tax on a $5,000 bonus, against $1,100.00 with the flat rate.
Take-home pay on a bonus in Michigan
What is withheld from bonuses of different sizes, with the federal flat rate, for a single filer who has not yet reached the Social Security wage base this year.
| Bonus | Federal income tax | Social Security and Medicare | Michigan taxes | Take-home bonus | You keep |
|---|---|---|---|---|---|
| $1,000 | $220.00 | $76.50 | $42.50 | $661.00 | 66.1% |
| $2,500 | $550.00 | $191.25 | $106.25 | $1,652.50 | 66.1% |
| $5,000 | $1,100.00 | $382.50 | $212.50 | $3,305.00 | 66.1% |
| $10,000 | $2,200.00 | $765.00 | $425.00 | $6,610.00 | 66.1% |
| $25,000 | $5,500.00 | $1,912.50 | $1,062.50 | $16,525.00 | 66.1% |
| $50,000 | $11,000.00 | $3,825.00 | $2,125.00 | $33,050.00 | 66.1% |
Local income tax on bonuses
Local wage taxes come out of bonuses too. If you live or work in Detroit or Grand Rapids, expect the local rate on top of the figures here. This calculator does not include local tax; the city pages do.
Michigan bonus taxes compared with nearby states
The same $5,000 bonus, flat federal rate, in each state that borders Michigan. Of these, Ohio leaves the most of the bonus in your pocket.
| State | State bonus withholding | State taxes on the bonus | Take-home bonus |
|---|---|---|---|
| Michigan | 4.25% flat | $212.50 | $3,305.00 |
| Indiana bonus tax calculator | 2.95% flat | $147.50 | $3,370.00 |
| Ohio bonus tax calculator | 2.75% flat | $137.50 | $3,380.00 |
| Wisconsin bonus tax calculator | Regular tables | $267.11 | $3,250.39 |
More Michigan pay calculators
For your regular take-home pay, use the Michigan paycheck calculator. To see a bonus next to your regular paycheck, try the bonus paycheck calculator. Employers paying a bonus can use the bonus payroll calculator or the Michigan payroll calculator. The bonus tax calculator page compares every state.
Sources
Federal figures follow IRS Publication 15. Michigan bonus withholding comes from the state's own guidance: michigan.gov. See how we calculate for the withholding method.